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Cabinet - Tuesday, 11 February 2025 7:00 pm

February 11, 2025 View on council website  Watch video of meeting or read trancript
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Summary

The meeting approved a 4.99% rise in council tax and a range of savings across all departments, including changes to the Council Tax Support Scheme, in order to enable the Council to deliver a balanced budget for the coming financial year. It also approved plans to acquire Park Road Allotments, Isleworth, the adoption of a new Local Heritage List, and a £11m bid for grant funding to support the development of a new Heat Network in Isleworth and Brentford.

Council Tax Support Scheme

A new scheme for providing support to working age residents with their Council Tax bills was agreed. The scheme will run from April and will mean that all working age residents will be required to make some contribution to their council tax.

The principle of this proposed change is that everyone should pay some contribution to the cost of council services

The scheme will retain five income bands but will take account of household composition by providing higher income thresholds for families with children. Single people will receive the standard 25% Single Person Discount. In addition, those residents in receipt of Carer’s Allowance will only pay 10% of their council tax.

To mitigate the impact on those residents whose council tax contributions will increase as a result of the change, a Hardship Support Fund of £1.5m was agreed. A report on the Council Tax Support Scheme consultation which ran between October and December 2024 was noted.

Budget 2025/26

A 4.99% increase in Council Tax was agreed, made up of a 2% Adult Social Care precept and a 2.99% general increase, to enable the council to deliver a balanced budget. A report was presented setting out the Council’s financial position and the difficult decisions which need to be made.

the budget's delivered against a backdrop of absolutely significant financial challenge caused, I think, primarily by years of chronic underfunding from the previous government, but also a perfect storm of spiralling costs and increasing demand for our services.

The agreed budget includes £12.2m of new savings proposals, which are set out in detail in the report.

There are several key risks to budget delivery. In the area of Adult Social Care, demand has increased, particularly for residential care packages. Hounslow performs strongly in sector-wide benchmarking for the effective management of its ASC budget. However, there is a risk that an anticipated surge in demand, predicted to double by 2029/30, will compromise the council’s ability to balance future budgets. These risks have been factored into the budget for 2025/26, however, in the short term it may be necessary to allocate additional funding from reserves to cover any shortfall.

Other key areas of financial pressure highlighted include Homelessness, Waste and Recycling Services, and Children’s Services (specifically placements for Children with Disabilities). A total of £28m from the Budget Support Risk Reserve will be used to support the budget, and in addition a further £14m of risk reserves will be ring-fenced to cover a range of budget risks. This reflects the challenging environment in which the Council has been operating, and its requirement to take action now to ensure future prosperity.

Local Heritage List

A revised Local List of Heritage Assets was approved. The list includes new nominations that have been received from members of the public in a consultation exercise, and reflects the diverse architectural and social heritage of the borough.

Heritage assets in this borough are something that I think we need to make sure we do, and certainly something I approve of, the support for and encouragement to highlight wherever they exist and whatever they may be.

The adoption of the List is designed to meet the requirements of the NPPF, which sets out a presumption in favour of retaining non-designated heritage assets in the determination of planning applications.

Additional HMO Licensing

Proposals to designate the whole Borough as an Additional HMO licensing scheme, on the expiry of the current scheme in July 2025, will proceed to public consultation.

HMOs are a very standard part of life in this country now, particularly in London and certainly in Hounslow.

The Licensing scheme will continue for a period of 5 years. It will apply to all smaller Houses in Multiple Occupation that are not covered by the existing mandatory licensing scheme, including Flats in Multiple Occupation in large purpose built blocks, and properties that have been converted into self-contained units without the correct Building Regulation approval.

any measures we can put in place to alleviate that for our borough's residents is something we want to look at

The objectives of the scheme are to improve property conditions, raise standards of management, and reduce anti-social behaviour in HMOs. An Evidence Pack to inform the consultation has been prepared, which shows an increased level of complaints relating to HMOs across the borough. The consultation will run for 10 weeks.

Article 4 Direction

The Cabinet confirmed the Article 4 Direction, which will apply from 22 April 2025. The direction withdraws permitted development rights (PDRs) for the change of use from commercial, business and service use to residential use (Class MA) and demolition of vacant office blocks and their replacement with new housing (Class ZA) in:

 the borough’s town centres and neighbourhood centres, and  the designated employment areas.

We want the highest quality of homes in our borough. So, we're saying that putting an Article 4 direction in place means that we can take far more control over any changes that people wish to make.

The aim is to protect the integrity of these key areas in the borough. In the absence of an Article 4 Direction, the Council would have no control over these types of changes. It could lead to a loss of essential services and facilities in local centres, reduce the amount of affordable housing being delivered, and risk undermining the Council’s strategy for the Great West Corridor. The direction will not stop development taking place in these areas; it will merely require applications to go through the full planning process rather than via prior approval.

The Council undertook a 6-week consultation on the direction between 19 April and 31 May 2024 and details of the responses are set out in the report.

Hounslow Companies Business Plan 2025/26

The Lampton Group of Companies annual Business Plan for 2025/26 was approved. The plan sets out Lampton’s goals for the year in line with the Council’s priorities. These include:  Provision of customer-focused services;  Increase market position and grow revenue streams;  Maximise the property portfolio council house building targets;  Deliver cost-effective services; and  Add value to the local economy.

they are absolutely committed to dealing with that. And in fact, we had a very rich conversation at shareholder committee around the action planning for that and being able to demonstrate to us as shareholders that they are dealing with some of those challenges, both in terms of service delivery, but also the financial challenges that exists so that it stays on Lambton's books until they resolve it and doesn't end up on our balance sheet

Lampton 360 Ltd, which is the council’s wholly owned company, will be focusing on sustainable organic growth, strengthening their central support functions, and ensuring they are fit for the future, whilst ensuring they continue to provide the Council with high quality services.

Lampton is forecasting a deficit of £0.8m for 2025/26, which represents an improvement on the current year's forecast. There is no further borrowing requirement included in the Business Plan, and there is no dividend planned to be paid to the Council.

Hounslow Land Acquisition - Allotments

The Cabinet agreed to seek to acquire the freehold of Park Road Allotments, Isleworth. These allotments have been in constant use for over 100 years and are currently managed by the landowner, the Northumberland Estate.

the pandemic really underscored for us the importance of allotments in terms of the physical and mental health of our residents.

Hounslow currently has 29 allotment sites with over 1,800 households on the waiting list. Preserving existing allotments is therefore a priority. This is reflected in the Council’s Corporate Strategy, Green and Blue Infrastructure Strategy and Allotment Strategy 2020-2025, which set out a commitment to protect and increase the amount of allotment provision in Hounslow.

The site is currently listed as an Asset of Community Value, which gives some protection against development for the immediate future.

to me, seems that we should preserve those allotments that we already have in our borough. And when allotments are under threat, we should do what we can to secure those allotments for the future of our residents

Cabinet agreed to approve a budget of £??? to be allocated from the General Fund unallocated capital programme for acquisition of the freehold, and to delegate to officers, in consultation with the Lead Member, authority to agree final terms and enter into a contract.

Hounslow Heat Network Project

The project to create a Heat Network in the borough will proceed to the next stage.

this is incredibly exciting, because you can actually see apart from the the sciencey bits which were really, really interesting, actually how how transformative it is for residents in Copenhagen, how much it could benefit residents here in Hounslow and also the benefit for us in terms of decarbonizing some of the grid, which I think is really, really important as well.

A bid will be submitted to the government’s Green Heat Network Fund (GHNF) for £11m grant funding. Of this £1m is to enable the Council to procure a private sector delivery partner, and to support that partner to prepare detailed scheme plans for construction. The remaining £10m would enable construction of the scheme. A final decision on whether to proceed to construction will be brought to Cabinet in 2025.

if it is successful, it could be delivering heat produced from waste. Sewage basically waste heat from sewage from from from Mugden Sewage Works, which is in our borough. It could be delivering heat by 2030 potentially if if this if this goes to plan.

The network will be designed to take waste heat from Mogden Sewage Treatment Works to supply low carbon heat to Council, public sector and private sector buildings in Isleworth and Brentford.

we should be successful in this bid. I think we will have a very strong case to make famous last words. I hope not.

It is anticipated that this would be one of the most cost-effective means to decarbonise heating in this area, and will also lead to improvements in air quality.

Other Decisions Made

The meeting also received reports updating it on the following matters:  The progress of the programme of works to improve SEND services in the borough (approved at Cabinet in December 2023) – noting that good progress has been made with the approval of plans for new specialist school provision at the Reach Academy site in Feltham and at Wings Academy, and that the service was rated “Good” at a recent OFSTED inspection.  The current progress of the Delivery Plan across all of its portfolios - noting that there have been a range of positive achievements in this period, including the successful launch of the new Resident Experience and Localities Service structure and that preparations for the completion of the Independent Living and the Radical Overhaul of Consultation and Engagement programmes are underway.  The HRA Business Plan – noting the significant financial pressures affecting the HRA due to a combination of high inflation, increased interest rates, and the projected impact of higher than anticipated Right to Buy sales in the wake of the recent reduction in discount levels.  The Tenancy Strategy – agreeing to move away from 5-year flexible tenancies for new council tenants and adopt the same approach as previously, of issuing secure lifetime (indefinite) tenancies, after the successful completion of a 12-month introductory tenancy period, which has been retained.  The admission arrangements for the borough’s community schools for the 2026/27 academic year.  Financial performance at the end of Quarter 3 – noting that the General Fund revenue budget is projecting an overall £16.1m overspend for the current financial year, largely due to demand pressures in social care and homelessness services, and that while the HRA is forecasting a balanced budget, the contribution to HRA reserves will be lower than that budgeted for.

Decisions to be made in this meeting

Attendees

Councillor Lily Bath
Profile image for Councillor Tom Bruce
Councillor Tom Bruce  Labour •  Hounslow South
Councillor Ajmer Grewal
Profile image for Councillor Shivraj Grewal
Councillor Shivraj Grewal  Labour and Co-operative Party •  Heston Central
Councillor Sue Sampson
Councillor Salman Shaheen

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