The Finance, Policy and Resources Committee met to discuss the Council's financial strategy, including the Treasury Management Strategy, the Richmond Growth Plan, and the Corporate Quarter 3 Monitoring Report. Key decisions included recommending the Treasury Management Strategy and Capital Strategy to the Council for approval, endorsing the draft Richmond Growth Plan, and noting the Council's projected £2.7 million revenue overspend for the current financial year.

Treasury Management Strategy and Capital Strategy

The committee recommended the Treasury Management Policy, Strategy, Investment Criteria, Prudential Indicators, and Liability Benchmark for 2026/27 to the Council for approval. These documents outline the Council's approach to managing its borrowing, investments, and cash flows, with a focus on risk management, security, and liquidity. Two minor amendments were proposed: one to better reflect the life of an asset when accounting for capital spend in the minimum revenue provision, and another to allow for additional money market funds for investments. The committee also recommended the updated Committed Capital Programme and its funding, along with new schemes for the Development Pool, to the Council for approval. The proposed capital programme totals £303.2 million over six years, financed through a combination of borrowing, grants, capital receipts, and reserves.

Richmond Growth Plan

The committee endorsed the draft Richmond Growth Plan, a ten-year strategy aimed at fostering inclusive and sustainable economic growth in the borough. The plan identifies five key drivers of growth: the visitor economy, creative economy, science, research and development, professional services and headquarters, and growing business and enterprise capability. It also outlines five enablers of growth: homes for all, developing skills and good work, transport and connectivity, a green and sustainable borough, and dynamic town centres. The plan sets ambitious goals, including a 20% increase in jobs and a 10% increase in businesses by 2036. The committee noted the importance of partnership arrangements, including the proposed establishment of a Growth Coalition of stakeholders, to underpin the delivery of the plan.

Corporate Quarter 3 Monitoring Report

The committee received an update on the Council's financial position for the third quarter of the financial year. The Council is projecting a £2.7 million overspend on its General Fund revenue budget, primarily driven by increased homelessness costs (£2 million) and children looked-after placement costs. These pressures are partially offset by a one-off £1.3 million VAT reclaim. The committee noted that the projected overspend will increase the draw from reserves to balance the budget to £7.6 million. The report also detailed the capital programme forecast, which has been revised to £79.8 million for 2025/26.

Revenue Budget and Council Tax 2026/27

The committee discussed the Council's revenue budget and Council Tax proposals for 2026/27. A significant challenge has been created by the Government's Fair Funding Review, which is projected to cut Richmond's grant funding by £29 million per year by 2028/29. To address this, the Council is proposing a 2.99% increase in Council Tax, alongside a 2% increase for the Adult Social Care precept, resulting in an overall increase of 4.81% for a Band D property. This will bring the total Band D Council Tax to £2,486.10. The committee noted that even with this increase, the Council will need to use £15 million from its Financial Resilience Reserve to balance the budget. The report highlighted the Council's commitment to its £30 million Transformation Programme, designed to reshape services, improve outcomes, and ensure long-term financial resilience.

Directorate Budget Report 2026/27

The committee reviewed the detailed directorate budget proposals for 2026/27. For the Finance, Policy and Resources Committee's remit, the net expenditure is projected to decrease from £4.5 million in 2025/26 to a deficit of £821,800 in 2026/27. This reduction is largely due to a significant decrease in central items, including a projected £15 million draw from the Financial Resilience Reserve to balance the budget. The report also detailed proposed revisions to fees and charges, which are expected to generate an additional £13,400 in income.

Committee Work Programme

The committee reviewed its work programme for future months. It was noted that the Richmond Accommodation Bid is likely to be discussed in June. The committee agreed to keep a scheduled meeting in April in the diary, even without confirmed agenda items, as it is easier to cancel a meeting at short notice than to schedule one if business arises.

The meeting concluded at 8:22 PM.