The Cabinet noted the end of year performance for the Our Plan for Barnet 2023-2026[https://barnet.moderngov.co.uk/documents/s76605/Barnet%20Corporate%20Plan%202023-26.pdf], approved the final revenue and capital outturn for 2023/24, and agreed the approach and process for setting a balanced budget for 2025/26 and the Medium-Term Financial Strategy (MTFS) to 2030. They approved the Modern Slavery Strategy (2024-2027), approved the Draft Planning Obligations Supplementary Planning Document for public consultation, noted the complaints performance and service improvement report for 2023/24 and approved the Housing Ombudsman Complaint Handling Code Self-Assessment 2024, approved the grant of a renewal lease to Arts Depot Ltd for a term of 50 years at a peppercorn rent, approved the updated Neighbourhood Community Infrastructure Levy Policy, and agreed to retain Barnet Homes and commence a review of the Management Agreement.

Our Plan for Barnet - Delivery and Outcomes Framework

The Cabinet noted that, of the 61 indicators against which performance could be measured:

42 improved (69%); four were similar (7%); and 15 worsened (25%).

The Cabinet noted the highlights of the previous year which included:

• The award of Borough of Sanctuary status in May 2024.

• Becoming a London Living Wage Employer.

• The opening of Brent Cross West Station connecting the area to central London in 12 minutes.

• The opening of Fair Play Barnet, the council’s first fully inclusive and accessible play area.

The Cabinet noted that there remained challenges in recruiting and retaining skilled staff, particularly in Children's Social Work, Planning, Highways Engineering and professional services. The Cabinet noted that the financial pressures facing the council are likely to continue.

Chief Finance Officer Report

The Cabinet noted that the revenue budget was overspent by £22.181m as of 31 March 2024, and that the Council held earmarked reserves of £83.561m at that date, representing a decrease of £43.139m from the opening balance on 1 April 2023. The capital programme expenditure outturn for 2023/24 was £322.671m, representing a decrease of £58.786m against the approved budget.

The Cabinet noted the national and local factors driving the overspend including:

• Inflation reaching 10% when the council had budgeted for non-pay inflation of just under 8%.
• Increases in the Bank of England Base Rate driving up the cost of borrowing.
• Increasing demand for adult and children's social care.

The Cabinet noted that the challenges facing the council are likely to continue in 2024/25 and beyond.

Business Planning 2025-2030

The Cabinet noted the financial context of the recent general election, the main assumptions of the MTFS to 2030, and the council’s approach to preparing its Productivity Plan.

The Cabinet noted that the refreshed MTFS shows a balanced budget for 2025/26, with an expected cumulative shortfall of £25.883m by 2030.

The Cabinet noted the indicative timetable for preparing the 2025/26 budget and the MTFS, which will be discussed again at cabinet meetings in October and December, with the final MTFS being presented to Cabinet in February 2025.

The Cabinet noted that the budget includes earmarked allocations from contingency to fund pay and non-pay inflation, and delegated authority to the Chief Finance Officer to allocate these. The Cabinet noted that as part of the transition to Oracle¹ in 2024, budgets need to be reallocated from Capita to internal service areas, and delegated authority to the Chief Finance Officer to approve these virements up to £1m.

Modern Slavery Strategy 2024-2027

The Cabinet approved the council’s first Modern Slavery Strategy.

The Cabinet noted that, in October 2023, a motion was unanimously passed at Full Council to publish a Modern Slavery Strategy.

The Cabinet noted that Modern Slavery:

encompasses 1) human trafficking and 2) slavery, servitude and forced or compulsory labour.

The Cabinet noted that:

Modern slavery is a complex crime but can be understood as deception or coercion for the purpose of exploitation.

The Cabinet noted that the data indicates Barnet had 106 cases of modern slavery during the period of November 2021 to October 2023, but that the true scale is likely higher due to poor case-logging and reporting.

The Cabinet noted that the aims of the new strategy are to prevent Modern Slavery, protect victims, and prosecute perpetrators.

Brent Cross Update Report

The Cabinet noted the progress made on the Brent Cross Cricklewood Regeneration Programme, particularly at Brent Cross Town where the first homes are due to be completed later this year, and at Brent Cross West Station, which is seeing good use.

The Cabinet noted that work continues with Related Argent, the council’s joint venture development partner, to finalise the Third Phase Proposal which will set out how plots, infrastructure, and public realm will come forward in the next phase of delivery.

The Cabinet noted that:

• Detailed planning permission has been granted for plot 23 and that, subject to the approval of the Secretary of State, the sale of the plot to the purchaser, Brent Cross South Limited Partnership, will be completed in late summer.
• Detailed planning permission has been granted for plot 43b and that, subject to the approval of the Secretary of State, the sale of the plot to the purchaser could be completed during July.

The Cabinet noted the ongoing work to close out the station’s contracts and the progress made in resolving the remaining contractual disputes with Network Rail.

The Cabinet noted the continuing work to ensure community involvement at Brent Cross West, particularly the planned Friends of Brent Cross West group that will help to ensure the station space works well for the community.

The Cabinet noted that the rehousing of residents from the Whitefield Estate Low Rise to plots 53 & 54 will commence in July and that the demolition of the Whitefield Estate Low Rise will begin once residents have moved out. The Cabinet noted the progress made on implementing CPZs around the development, and that any decision regarding a CPZ for the Claremont Road / Prayle Grove area will be made following the completion of parking surveys in June and August.

The Cabinet noted the engagement of various specialist consultants and organisations to provide advice and input to support the delivery of the regeneration programme, including:

• Currie & Brown
• Mace
• Croftstone
• Gowling WLG
• CBRE
• Newsteer Real Estate Advisors
• McFarland Consulting
• Eversheds Sutherland
• DP9
• Hunters

The Cabinet noted that following a meeting with Related Argent in April, it had been decided that Shell funding would not be accepted to support the set-up of the Skills Centre, due to the unacceptable reputational risk.

Draft Planning Obligations Supplementary Planning Document

The Cabinet approved the Draft Planning Obligations Supplementary Planning Document (SPD) for public consultation.

The Cabinet noted that the SPD is the first in a suite of SPDs that will be produced to support the implementation of the new Local Plan, which is expected to be adopted later in 2024. The Cabinet noted that, once adopted, the SPD would become a material consideration in the determination of planning applications.

The Cabinet noted that the SPD sets out thresholds for requiring financial contributions for:

• Affordable housing.
• Employment, skills, and training.
• Affordable workspace.
• Community facilities, including health and education facilities.
• Improvements to open space and play spaces.
• Replacement tree planting where existing trees have to be felled.
• Biodiversity Net Gain².
• Off-setting carbon emissions.
• Sustainable transport and transport mitigation measures, including car free development.

The Cabinet noted that the SPD includes indicative fees for monitoring S106 agreements and that these will be index-linked to ensure that they reflect the costs of monitoring.

Annual Landlord Services Complaints Performance and Service Improvement Report 2023/24

The Cabinet noted the performance and service improvement report for 2023/24, which includes complaints about landlord services provided to tenants and leaseholders living in council properties. The Cabinet approved the Housing Ombudsman Complaint Handling Code Self-Assessment 2024, which sets out the compliance of the council’s current complaint handling processes with the requirements of the Code. The Cabinet noted the performance of Barnet Homes, the council’s Arms-Length Management Organisation, in responding to Housing Ombudsman cases in 2022/23.

The Cabinet noted that Barnet Homes:

welcomes complaints as an opportunity to understand issues, put things right, and continuously improve services.

The Cabinet noted that the three-year trend for Stage 1 complaints indicates an overall reduction in numbers but that there was an increase in the number of complaints escalated to Stage 2 in 2023/24.

The Cabinet noted that two findings of severe maladministration were made by the Housing Ombudsman. One related to the handling of reports of noise nuisance. In response to this determination Barnet Homes:

• Updated its housing management system to include noise nuisance reporting and introduced manager monitoring of noise nuisance cases.
• Updated its Neighbourhood Management Policy to cover noise nuisance.
• Updated its website and briefed staff on noise nuisance.

The second related to the handling of reports about issues with a boiler repair and a request for a decant.

Arts Depot New Lease

The Cabinet agreed to grant a new lease to the Arts Depot for a term of 50 years at a peppercorn rent.

The Cabinet noted that Arts Depot occupies its premises at Tally Ho Corner under a 21 year lease which is due to expire in September 2025. Arts Depot is seeking Arts Council Funding for refurbishment works in excess of £5m, and one of the requirements for securing the grant funding is that there must be a lease term of at least 30 years.

The Cabinet noted that as the new lease is being granted at a peppercorn rent, an application will need to be made to the Secretary of State for approval, and delegated authority to the Head of Property and Portfolio Management, Sal Waheed, to make this application.

Update to the Neighbourhood Community Infrastructure Levy (NCIL) Policy

The Cabinet approved the updated NCIL policy. The Cabinet noted that the main objectives of the policy are to:

• Ensure an inclusive and robust governance framework for the management and use of NCIL funding.
• Ensure that funding is directed to projects that secure positive outcomes for the benefit of local communities.
• Ensure that projects are demonstrably aligned to the Barnet Plan.

Review of the Management Agreement with Barnet Homes

The Cabinet agreed to retain Barnet Homes and to begin a review of the Management Agreement. The Cabinet noted that the review will consider the following areas:

• The performance of the Housing Options Service against the 2023/24 targets.
• The performance of Barnet Homes against the key performance indicators in the Management Agreement.
• The delivery of the council's corporate priorities as set out in Our Plan for Barnet 2023-2026 and how Barnet Homes supports the delivery of these.
• Any future government policy or legislation that impacts housing and the delivery of housing services.

The Cabinet noted the indicative timeframe for the review and that it is expected to be completed by December 2024.