Issue - meetings

RESOLVED:

That the Cabinet:

1. Note the budget monitoring position and treasury management update as at February 2023 (Month 11) as outlined in Part A of this report.
2. Approve the financial recommendations set out in Part B of this report set out below:

a.     Agree a realignment of the permit arrangements for the Ruislip Lido RL3 Parking Management Scheme to mirror those of the RL4 Scheme, as set out in the report.

b.    Ratify an Emergency Contract Decision taken by the Interim Chief Executive, with the agreement of the Leader of the Council, on 27 March 2023 to agree to a single tender action direct award contract with Allianz Insurance plc via Alford Burton (Insurance Broker) for the building's insurance for Council leaseholder residential properties for a period of one year from 1 April 2023 to 31 March 2024 at the cost of £919,413.76.

c.     Accept £95k grant funding from the Department for Environment, Food, and Rural Affairs (Defra) for costs associated with the delivery of new post-Brexit port health authority functions at the Heathrow Imported Food Office.

d.    Approve a reduction in the 2023/24 uplift in service charges for district heating schemes and gas supplies from 213% to 123% with effect from 3 April 2023 to passport the benefit of lower gas prices through to tenants and leaseholders.

Reasons for decision

Cabinet was informed of the forecast revenue, capital and treasury position for the current year 2022/23 to ensure the Council achieved its budgetary and service objectives.

The Leader of the Council read a statement from the Cabinet Member for  Finance, who had given his apologies for the meeting. In this statement, it was noted that that the overall in-year position was stable, strong and encouragingly predictable, where the Council was realising the benefits of its transformation programme. The general balances were predicted to be at £26.8m by year end and the continuing pressures from Covid-19 were projected at £14.9m consistent with last month, and whilst lower than last year, would be absorbed within earmarked reserves.

The material inflation pressures were still having an impact on the Council’s costs, which were being absorbed through earmarked reserves. It was stated that the importance to retain and rebuild reserves was a priority. It was noted that the savings programme progressing well and on track and that in respect of the capital programme, whilst this was £25.6m under budget to due delays on projects, such spend would be re-phased into future years.

In respect of the Dedicated Schools Grant it was noted that this had also suffered from cost inflation, particularly in respect of high needs placements now coming in at £2m in excess of budget. However, the projected year-end deficit was positively showing a further reduction, with an improved position compared to last year. An update was given on the Housing Revenue Account and related capital budget.

The addendum tabled to Cabinet was considered which related to amending service charges relating to district heating and gas supplies for tenants and leaseholders, passporting the benefit of the Council securing lower than anticipated prices on gas supplies for the 2023/24 year. On this matter, the Leader of the Council provided a detailed explanation of the background, where the Council had previously been subsidising the energy cost for residents and that this position could no longer continue. It was noted that whilst the increase in charges for 2023/24 was still significant, it would now be lower than planned and that households facing exceptional pressures with energy prices could benefit from the Government’s Household Support Fund in this regard, which had been confirmed again for this year.

Other financial recommendations approved by the Cabinet included the acceptance of a Government grant for the Imported Food Office, a realignment of the parking permit arrangements for the Ruislip Lido RL3 Parking Management Scheme and ratification of an Emergency Contract Decision taken for buildings insurance for Council leaseholder residential properties, where it was noted that the insurance underwriting market was challenging, but that the Council had made an exceptional effort to secure a satisfactory level of cover on reasonable terms.

Alternative options considered and rejected

None.