Issue - decisions

RESOLVED:

That Cabinet approves for recommendation to Council:

1)    The General Fund and Housing Revenue Account budgets and Capital Programme proposals for 2024/25 (as detailed in Appendices A, B and C) and beyond, and having taken the consultation responses conscientiously into account outlined in Appendix F Budget Consultation Feedback.

2)    The Capital Strategy, Treasury Management Strategy Statement, Investment Strategy, and Minimum Revenue Provision Statement for 2023/24 to 2028/29 as detailed at Appendix D.

3)    The proposed London Borough of Hillingdon Pay Policy Statement for 2024/25 set out at Appendix E.

4)    That it resolves that Cabinet may utilise the general reserves or balances during 2024/25 in support of functions designated to the Cabinet in line with Part 4 of the Constitution (as set out in Schedule G of the Constitution - Budget and Policy Framework Procedure Rules).

5)    Authorise the Corporate Director of Finance, in consultation with the Cabinet Member for Finance, to respond on behalf of the Council to the consultation on the provisional Local Government Finance Settlement and to the Mayor of London’s budget consultation.

That Cabinet:

6)    Notes the Corporate Director of Finance's comments regarding his responsibilities under the Local Government Act 2003.

Reasons for decision

The Cabinet Member for Finance introduced the Cabinet's budget proposals and the medium-term financial forecast, which had undergone some changes from the consultation budget approved in December 2023. For the financial year 2024-2025, the final local government settlement had resulted in a net improvement of £974,000, while the counter-fraud team had identified an additional £750,000 in retained business rates income. Despite increased demand for services like homelessness support, looked-after children, and adult social care, the budget proposed remained balanced due to improved commissioning of savings.

It was noted that additional capital expenditure of £30 million was allocated to the General Fund for further investment in special educational needs provision, highways, digital technology and adult residential care provision. Additionally, £108 million was included in the Housing Revenue Account for additional housing provision.

The Cabinet Member highlighted the key provisions of the proposed budget, which included a 2.99% increase in Council Tax, along with a 2% charge for the social care precept, resulting in a total increase of 4.99% before the London Mayoral precept, which amounted to an 8.6% increase. Fees and Charges within the Borough were proposed to be increase by the prevailing rate of inflation only. The budget also ensured the retention of all frontline services with provisions for demand growth and inflation.

The Cabinet Member outlined the proposed savings programme aimed at reducing costs by £33.4 million across the medium-term financial forecast, and the General Fund capital expenditure programme which proposed an investment of £248 million in infrastructure over the next five years, along with an allocation of £7.5 million to enhance reserves.

On housing rents, it was noted that this would increase by the consumer pricing index plus 1%, as permitted, with a capital expenditure programme of £550 million planned in the Council’s housing stock over the next five years.

The Leader of the Council expressed his gratitude to officers for their efforts in compiling the budget proposals, acknowledging the challenges posed and their unseen and tireless work, which he asked the Chief Executive to pass on.

Following consideration of the public consultation and select committee comments, Cabinet, therefore, resolved to recommend its budget proposals to the Council meeting on 22 February 2024 for final consideration.

Alternative options considered and rejected

The Cabinet could have chosen to vary the proposals in its budget before recommending it to Council.