Decision details

RESOLVED:

That the Cabinet:

1.    Note the budget monitoring position and treasury management update as at September 2024 (Month 6), noting the actions proposed by officers as outlined in Part A of this report.

2.    Approve the financial recommendations set out in Part B of this report:

a)    Approve acceptance of £20k grant funding from the Greater London Authority (GLA) to support costs associated with implementing auto-enrolment of eligible families / pupils for the National Free School Meals grant.

b)   Note the request to extend the CPA limit to finalise payments with Castlefield Recruitment Ltd and Ambient People, two recruitment suppliers.

c)    Accept the Household Support Fund grant (£2,069,342) for the period 1st October 2024 to 31 March 2025 and approve the policy statement as set out in the Appendix B1.

d)   Delegate authority to the Head of Legal Services, in consultation with the Cabinet Member for Finance & Transformation, to set and vary legal fees chargeable to external third parties in respect of legal work undertaken by or on behalf of the London Borough of Hillingdon. Fees set or varied pursuant to this delegation shall be reported to Cabinet as part of the regular budget reporting processes.

Reasons for decision

The Cabinet Member for Finance & Transformation introduced the monthly Council budget monitoring report, addressing the financial position as of the end of September 2024. It was noted that the report highlighted a projected in-year overspend of £30.5 million, which was an improvement from the previous month. Identified savings measures could reduce the overspend to £6.9 million, resulting in closing reserves of £28.2 million. Key overspend areas highlighted by the Cabinet Member included adult social care, looked-after children, and homelessness.

The Cabinet Member advised that the Zero-Based Budgeting project had identified total savings of £47.6 million, with significant savings expected in future years and emphasised that these savings would not impact key frontline services. General fund capital expenditure was projected to be £106.7 million, with delays causing an £18.7 million underspend. The dedicated schools grant had seen operational improvements, reducing costs by £8.3 million, though a deficit remained. Furthermore, the housing revenue account faced a £0.6 million pressure due to delayed housing stock arrivals but remained on track overall. The Cabinet Member sought Cabinet’s approval of an updated Household Support Fund Scheme and highlighted how this would support residents eligible for pension credit but not receiving it due to application complexities.

The Leader of the Council acknowledged the financial challenges and praised the efforts to manage costs without affecting frontline services.

Alternative options considered and rejected

None.