Agenda item

The Head of Finance – Business Partnering and Transformation and the Corporate Director for Planning, Environment, Education introduced the report detailing the draft revenue budget and capital programme for the services within the remit the Committee.

Key points from the report were highlighted, including details of the financial pressures generated by the ongoing Covid-19 pandemic and the additional funding received from government, together with earmarked Council reserves, in order to manage such pressures. 

Budget proposals for 2022/23 had been prepared in the context of a wider strategy addressing the five-year MTFF period.        The latest monitoring position for the 2021/22 financial year reported a net underspend of £419k which would leave uncommitted General Balances at £26,520k entering the 2022/23 financial year. Of the £10,416k savings within the 2021/22 budget, 79% were either already banked or track for delivery, with 12% at an earlier stage of implementation and potential risks on 9% - relating to the Leisure Centre management fee. The budget for 2022/23 was based on a 1.8% per annum increase in Council Tax and 1% per annum increases in the Social Care Precept. Funding available to support service expenditure was projected to grow by £32,034k to £270,279k between 2021/22 and 2026/27.

The Committee noted that Cabinet would consider the budget proposals on 17 February 2022 and the report would include comments from Select Committees. Members were informed that Council would meet to agree the 2022/23 budgets and Council tax levels on 24 February 2022.

Although this had been a challenging budget to set, it was the most robust and there was a strong understanding of the figures particularly on the social care demographics. It was noted that the ongoing Covid impact in specific areas such as mental health was difficult to predict and £11 million in Earmarked reserves had been set aside for covid impacts for 2022/23. In relation to the volatility for covid recovery, the assumption was that this would start to decrease over time. A number of pressures in SEND transport had been covered with covid money in the current year and built into budgets in 2022/23.

Further information would be provided on how the borrowing requirements for the London Borough of Hillingdon stood compared to neighbouring boroughs. It was confirmed that the figure in relation to Harlington School had been included in the figures for secondary school expansion.  It was noted that monies for youth provision was earmarked the construction of scouts and guides huts.

The proposals for the education budget were part of the DSG deficit recovery plan, which had the support of the schools forum.

In terms of the provision of semi-independent and shared accommodation, it was explained that once a child reached over 18 they would be placed in shared accommodation. The Council approach to purchasing block accommodation in preference to spot placements can lead to significant savings.

Concerns in relation to the safety valve agreement were noted and some Members considered that it was difficult to give comments to Cabinet when there was not enough information at this time. It was noted that the SEND transport demand was expected to grow but it was hoped that with the new in borough provision included in the capital programme, the costs would decrease. Questions were raised regarding the national transfer scheme and UASC, and it was explained that the Home Office had increased funding on the asylum grant, and it was sufficient to cover the cost of placements, but not the associated staffing resource required to support these looked after children. The library service had been subject to a BID review to inform future service development options to meet resident's needs.

The Committee noted the strong, well-constructed proposals particularly around the investment in schools and infrastructure. Although there were some uncertainties, the £4.7 million remaining balance at the end of the MTFF period was noted to be low at this stage in the process. There were many positives around the new mental health pathway, the major review of Adult Education and stronger families programmes. It was important to focus on how the Council changed the way services were delivered.

RESOLVED: That authority be delegated to the Chairman and Labour Lead in consultation with Democratic Services to agree comments to be submitted to Cabinet.