Issue - meetings

RESOLVED:

That the Cabinet:

1)    Note the budget monitoring position and treasury management update as at February 2024 (Month 11), 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)    Accepts of £140k 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.

b)   Accepts a grant of £1,079k from the Department of Health and Social Care (DHSC) to fund further Public Health investment into substance misuse treatment & recovery.

c)    Agree to the release of the specific General Contingency created to fund the SEND Projects, with the following releases being requested totalling £10,000k:

a.    Meadow High School Expansion - £9,263k

b.    Pinkwell Primary School Expansion - £413k

c.    Establishing 24 ASD places at Wood End Park Academy - £324k.

d)   Note the acceptance of £90k grant funding from the Department for Transport for costs associated with progressing the Council’s local Electric Vehicle infrastructure strategy.

e)    Approve acceptance of the GLA Good Growth Fund grant of £450k to fund improvements at Hayes Town Centre.

Reasons for decision

In Councillor Goddard’s absence, the Leader of the Council gave a statement on the latest budget monitoring report from the Cabinet Member. The General Fund revenue account showed a small underspend, consistent with the month 10 report. The Leader noted the additional cost pressures of £3.6 million due to increased demand for homelessness services, care for looked-after children, and adult social care. These costs were to be covered by earmarked reserves, projected to total £10.1 million by 31 March 2024.

A surplus of £4.1 million in the collection fund had been identified, with the majority of benefits expected in the fiscal year 2024-2025, marking an improvement from the month 10 projection. Reported unallocated general balances were at £26.8 million, leading to a projected total reserve of £37 million by year-end. The Leader advised that the existing savings programme was on track to meet the £22.8 million target.

The Capital Fund forecast indicated an underspend of £38.4 million, with most of this amount proposed to be deferred to the following year. Despite inflation and increased demand for housing and social care against stagnant central Government funding, the Leader indicated that the Council’s financial position remained strong.

Discussions with the Department of Education regarding the Dedicated Schools Grant deficit were ongoing, following the suspension of the safety valve agreement and a delay in receiving £2.5 million funding from the Department. Consequently, the dedicated schools grant was projected to have a £29 million deficit by year-end.

The Leader noted that the Housing Revenue Account was expected to match the budget for the full year, with capital expenditure projected at £84 million, underspending by £0.5 million, which would mostly be deferred.

The Leader highlighted Part B of the report, which included financial recommendations and the use of capital contingency funding for additional special education needs within the Borough. Other recommendations, all agreed by Cabinet, pertained to the acceptance of grants.

Alternative options considered and rejected

None.