This meeting is scheduled to be about the council's plans for the next few years, including how it will spend money. It looks at the council’s Medium-Term Financial Plan and the budget for 2025/26. The meeting is also scheduled to look at how much money the council needs to borrow and how it will spend that money on long-term projects.

Housing Revenue Account

The meeting pack contains a report on the Housing Revenue Account (HRA) which covers the council’s income and spending on its housing stock. The report says that from April the council plans to charge the maximum amount of rent allowed to its tenants. The maximum is set by the government and for 2025/26 it is scheduled to be Consumer Price Index (CPI) inflation¹ plus 1%, which is 2.7%. The council is also scheduled to increase by 1.7% the amount it charges people to rent garages, sheds and parking spaces from the council. The report sets out the council's plan to spend £916 million over the next 5 years on long term projects related to housing in the borough. The money for these projects is scheduled to come from a variety of sources, but more than half of it is likely to be borrowed. The report says the council wants to borrow an extra £707 million over the next 15 years. This would be an increase of £110 million compared to its previous plan. The report also sets out the council’s plans to deal with problems caused by rising inflation, interest rates, and the cost of living.

Business and Financial Planning

The documents contain a report about the council’s business plan for the next three years and proposes the budget for 2025/26. It recommends increasing council tax by 4.99% for a Band D property, which is the average band in Westminster. This increase is made up of a 2.99% increase in the general element of council tax and a 2% increase in the Adult Social Care precept. This would increase council tax by £25.04 per year for a Band D property, which is 48 pence per week. The report says the council will receive £22 million more in government funding next year. The report details how the council plans to save £29.1 million in spending over the next 3 years. The council plans to invest in a number of initiatives to achieve its Fairer Westminster policy objectives. The report contains details of planned investments of £16.4 million for the 2025/26 financial year. It recommends these investments are funded from a combination of the base budget and earmarked reserves. The Fairer Westminster strategy was first published in 2022. It covers the 4 years from 2022 to 2026. Key investment areas include:

• Adult Social Care, which the report says will see investment of £2.65 million to standardise the minimum income guarantee for adults receiving homecare.
• Antisocial behaviour and rough sleeping, which will see investment of £1.25 million in 2025/26.
• The Housing Solution Service, for which the report says the council will spend an extra £1.8 million to reduce the number of households in temporary accommodation.
• The Changing Futures Programme, which is scheduled to receive £920,000.
• The District Heat Network, which the report says the council will spend £700,000 on.
• Cyber security, for which the council will increase spending by £400,000. The report also says that the council wants to continue allowing residents to make voluntary contributions to the Westminster Community Contribution scheme. The scheme allows residents to make voluntary payments to support discretionary council services, including services that support young people, provide extra support for rough sleepers, and address social isolation and loneliness. The council expects to have to pay more for adult social care, saying in the report, Adult Social Care - (additional £5.9m ongoing) increased pressure relating to changing demographics, rising demand in case numbers, increasing complexity and unit costs. The report also says that demand for temporary accommodation is expected to increase further, and that rough sleeping numbers have increased by 30% since last year. The report sets out the council’s plans to allocate £137,587,000 of its Dedicated Schools Grant to schools in the borough. The allocation will be made using a formula agreed by the Westminster Schools Forum which will see funding shift to be 30% closer to the National Funding Formula factor values. The national formula is designed to ensure that all schools are funded fairly, based on the needs of their pupils.

Integrated Investment Framework

The council is scheduled to discuss the Integrated Investment Framework for 2025/26. The framework sets out the council’s strategic objectives and procedures for making investment decisions. The meeting pack contains a report that recommends that the target for the overall return on council investments should aim to at least match inflation over the medium term, saying that the target for the overall return on Council investments should aspire to at least meet forecasts for inflation over the medium term. The document also recommends that the benefits of investing in the Pension Fund should be used as a benchmark for other investments. The report says that the council should work towards holding its investment portfolio in the following proportions:

• Between 33% and 37% in short-term investments that will be held for less than six months.
• Between 4% and 6% in short-term investments that will be held for between six and twelve months.
• Between 5% and 7% in short-term investments that will be held for between one and two years.
• Between 1% and 2% in short-term investments that will be held for between two and three years.
• Between 1% and 2% in short-term investments that will be held for between three and four years.
• Between 2% and 3% in short-term investments that will be held for between four and five years.
• Between 42% and 48% in property.
• Between 3% and 4% in alternative investments.

Treasury Management Strategy Statement

The meeting pack contains a report about the Treasury Management Strategy which sets out the council’s procedures for borrowing and lending money. The report says the council does not plan to borrow any more money this financial year, saying that the Council took no additional borrowing for the financial year due to the high level of cash holdings and rising interest rates. It says the council has arranged to borrow £400 million over the next few years at an average rate of 2.58%. These loans were arranged when interest rates were much lower than they are now, and have protected the council from recent rises. The report says that the council's advisors, Link Asset Services, forecast that the Bank of England Bank Rate will gradually fall during 2025 to 4.00%.

Capital Strategy

The meeting pack contains a report on the Capital Strategy, which sets out the council's plan to borrow and spend money on long term projects. The report says that the council wants to spend £2.496 billion over the next 15 years on a range of long term projects. The most significant areas of planned investment are Church Street, the Ebury Bridge estate, the Lisson Grove area, 291 Harrow Road and temporary accommodation. The report states that the council wants to accelerate its program to buy homes for use as temporary accommodation, increasing its budget for these purchases by £135 million. The council plans to use a combination of one-off and bulk purchases to quickly buy as many homes as possible. The report also details the council’s plans to invest in a number of other projects, including:

• The North Paddington Place Plan, for which the report says a defined delivery fund is being set up.
• Public realm works to the area around Grosvenor Square, for which the council has allocated £5,006,000.
• A scheme to improve Oxford Street, for which the council has allocated £15,867,000.
• An initiative called Active Streets, which encourages residents to walk, cycle and play in their streets.
• Public realm works around Henrietta Street and Southampton Street, which is scheduled to receive £2,378,000.
• A new cycle route from North to South Paddington, for which the council has earmarked £2,700,000.
• A project to replace the ventilation system of the Strand Underpass, for which £924,000 has been set aside.
• Works to improve Princes Street, for which £2,200,000 is scheduled to be spent.
• Pedestrian safety improvements at Terminus Place.
• Works to the Waterloo and Golden Jubilee bridges, which the report says will receive £15,750,000.
• Replacing the north bearing of Waterloo Bridge, which the document says will cost £1,050,000.
• Public realm improvements around Queensway, which are set to receive £4,176,000.
• Works to Regent Street, which the council has allocated £19,977,000 for.
• Public realm works to the area around Sackville Street and Vigo Street, which is scheduled to cost £906,000.
• A programme of works to improve safety for pedestrians around Shepherd Market, for which the council has allocated £3,190,000.
• Improvements to the public realm on St John’s Wood High Street, which is scheduled to receive £49,000.
• Public realm improvements to St Martin’s Lane, which will receive £4,300,000.
• A programme of refurbishment works to the Lisson Green Footbridge, which the document says will cost £367,000.
• The Huguenot House regeneration scheme, which is scheduled to receive £14,749,000.
• Refurbishment of the Seymour Leisure Centre and Marylebone Library, for which the council has allocated £39,239,000.
• The Lisson Grove Programme, which the document says will receive £286,716,000.
• The regeneration of 291 Harrow Road, for which the council has allocated £102,345,000.
• A scheme to improve the public realm of the Church Street Green Spine.
• The Westmead development, which the document says will receive £32,141,000.
• The development of a new family hub in Queens Park, which is scheduled to cost £3,953,000.
• An extension to Paddington Arts, which will receive £1,500,000.
• A program of works to improve the area around Pimlico.

Acquisition of A2Dominion Portfolio

The meeting pack also contains a part-exempt report about the council’s plans to acquire 368 homes from the A2Dominion Housing Group. The homes are all currently in use as temporary accommodation and the council wants to continue to use them for this purpose. The report recommends acquiring the homes through a council owned Limited Liability Partnership (LLP). A limited liability partnership is a company where the partners are not personally liable for any debts the company incurs. The partnership will borrow money from a funder to buy the homes. The council will lease the homes back from the LLP and continue to use them to provide temporary accommodation to residents. The report recommends that the council gives its Section 151 officer² and Monitoring Officer the power to certify compliance with the legal and financial requirements of the arrangement. The report states that, “The Council will guarantee to the funder the compliance by the LLP of its obligations under the Facility Agreement and associated finance documents." The report recommends that the council delegates authority to its Executive Director of Finance and Resources, Gerald Almeroth, and its Strategic Director of Housing and Commercial Partnerships, Sarah Warman, to agree the details of the deal.

Pay Policy Statement

The meeting pack also contains a report on the Pay Policy Statement for 2025/26. The Pay Policy Statement sets out the council’s policy on how it pays its staff. The report recommends approving the draft Pay Policy Statement for 2025/26. The statement says that the council pays its lowest paid staff a minimum of £27,711 per year, and that the Chief Executive’s total pay in 2024 was £232,389, which is 8.4 times higher than the lowest salary. The document explains how the council calculates statutory redundancy pay for staff who lose their jobs, and how it sets redundancy compensation payments. The Pay Policy Statement also sets out the council’s procedure for making special severance payments to staff who leave their jobs, saying that any exit payments of £20,000 or more that fall within the scope of the statutory guidance on special severance payments must be approved by the Chief Executive. It also says that any severance payment exceeding £100,000 needs to be approved by the full council.