Decision Maker: Council

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: March 5, 2025

Purpose:

Content: The motion was MOVED by Councillor De Ryk and SECONDED by Councillor Rathbone.   Under the provisions of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was conducted on this item with the following result: For (46) Councillors Anwar, Atkinson, Barnham, Bell, Bernards, Best, Bourne, Burgess, Brown, Clarke, Cunningham, Curran, Dall, Davis, De Ryk, Eiles, Erheriene, Harding, Howard, Huynh, Ingleby, Jackson, Johnston-Franklin, Kestner, Lahai-Taylor, Lavery, Millbank, Moore, Muldoon, Parry, Jacq Paschoud, John Paschoud, Penfold, Royston, Rathbone, Schmidt, Aliya Sheikh, Sakina Sheikh, Shrivastava, Sorba, Stamirowski, Walsh, Warner, Webley-Brown, Walker and Wise.  Against (0) Nil Abstention (1) Tam   RESOLVED that, having considered the views of those consulted on the budget, and subject to proper process as required, Council agreed to:   General Fund Revenue Budget 1.             note the 2024/25 forecast projected overall variance of £26.0m, after the use of corporate provisions and reserves, or 8.8% of the agreed budget of £293.838m as set out in Section 6 of the report, and that this year-end overspend will be met from corporate provisions and reserves; 2.             endorse the budget cut reduction measures of £0.850m (previously agreed) and £3.848m (agreed in 2024/25), for 2025/26 as set out in Section 6 of the report and summarised in Appendix Y1 and Y2 respectively; 3.             agree the allocation of £65.023m of resources from; the corporate risks and pressures, Adult Social Care precept, social care grant, Adult Social Care market sustainability and improvement fund, New Homes Bonus, Recovery Grant, Children’s Social Care Prevention Grant, government funding for increased employers National Insurance Contributions (NICs) and reserves in 2025/26 to be invested in funding quantified budget pressures and opportunities, both recurring and once-off, as set out in Section 6; 4. agree a General Fund Budget Requirement of £312.515m for 2025/26 be approved; 5. agree to a 4.99% increase in Lewisham’s Council Tax element. This will result in a Band D equivalent Council Tax level of £1,644.75 for Lewisham’s services and £2,135.13 overall. This represents an overall increase in Council Tax for 2025/26 of 4.77% and is subject to the Greater London Authority (GLA) precept for 2025/26 being increased by £18.98 (i.e. 4.03%) from £471.40 to £490.38, in line with the GLA’s draft budget proposals; 6. note the Council Tax Ready Reckoner which, for illustrative purposes, sets out the Band D equivalent Council Tax at various levels of increase. This is explained in Section 6 of the report with more detail in Appendix Y4; 7. ask that the Executive Director for Corporate Resources issues cash limits to all Directorates once the 2025/26 Revenue Budget is agreed and publishes the Council Budget Book; 8. consider the Section 25 Statement from the Chief Finance Officer, the Executive Director for Corporate Resources. This is attached at Appendix Y5; 9. agree the draft statutory calculations for 2025/26 as set out at Appendix Y6; 10. note the prospects for the revenue budget for 2025/26 and future years, including the planned use of £21.895m of reserves to enable the setting of a balanced budget, with the need for at least £30.000m of budget reductions to be implemented in 2026/27 to remove this reliance as set out in Sections 6 and 7; 11. agree and ask officers to continue to develop firm proposals to redesign and transform services and inform the capital strategy by bringing them forward in good time to support the work towards a savings and investment round to help plan early to meet the future forecast medium term finance strategy objectives; 12. agree to write-off 16 cases of Former Tenants’ Arrears related to Temporary Accommodation stock totalling £326,710.42, as set out in Appendix Y10; 13. agree to write-off one case of Business Rates Arrears totalling £142,383.75, as set out in Appendix Y10; 14. agree to write off one case of Adult Social Care Sundry Debt Arrears totalling £59,486.63, as set out in Appendix Y10; Other Grants (within the General Fund) 15. note the adjustments to and impact of various specific grants for 2025/26 on the General Fund as set out in Section 6 of the report; 16. agree the award of the anticipated UK Shared Prosperity Fund (UKSPF) grant, anticipated to be in the region of £1m, and the Connect to Work Employment Programme Grant of £8.5m, and delegate agreeing the grant conditions to the Executive Director for Corporate Resources; Fees and Charges 17. approve the approach to setting 2025/26 fees and charges for chargeable services in Section 6 of the report and attached at Appendix Y8; Dedicated Schools Grant and Pupil Premium 18. note the provisional gross Dedicated Schools Grant (DSG) allocation for 2025/26 of £395.95m before the Department for Education’s (DfE’s) adjustments to fund Academy schools; 19. note the provisional DSG allocation for £257.08m be the Schools’ Budget (Schools Block) for 2025/26 covering both maintained schools and academies, and that this includes streamlining of grants for teachers pay (2023/24 award), Core Schools Budget Grant and the Teachers’ Pensions Grant totalling £13.5m; 20. agree, as recommended by Schools Forum, the once-off transfer of circa £1m of Schools Block funding to the High Needs Block, a 0.5% transfer; 21. note the construct and allocation of £2.96m for the Central Schools Services Block allocation for 2025/26, a continued reduction of £0.260m (20%), plus formula led element increase of £0.19m, which is rolled in funding and not new funding; 22. note the provisional High Needs Block of £83.96m to support the Council’s statutory duty with regards to Special Education Needs (SEN), a net increase of £5m relative to 2024/25 (6%). Also to note that the High Needs Block will be finalised in March for deductions arising for institutions funded by the Education and Skills Funding Agency (ESFA); 23. note, the DSG allocation to the Early Years Block of £51.96m; 24. note that the DfE has increased hourly funding for 3- and 4-year-olds from £7.24 to £7.52 (3.9%) and with respect to 2-year-old disadvantaged funding from £10.64 to £11.04 (3.8%); 25. note the increased hourly funding for under 2-year-olds from £14.52 (introduced and part funded in September 2024) to £15.06 (3.7%); 26. note the increased hourly rate for 2-year-old working parent entitlement from £10.64 to £11.04 per hour (3.8%); 27. note that the pupil premium will continue in 2025/26 (no details have been provided on the value of this as yet, this is expected to be confirmed in late summer 2025); 28. note that the DfE has advised a new grant will be provided to support Schools for the changes to the Employers NICs, however no details have been provided as yet; Housing Revenue Account 29. note the consultation report on proposed service charge increases to tenants and leaseholders in the Brockley area, presented to tenants and leaseholders on 30 October 2024, as attached at Appendix X2; 30. note the consultation report on proposed service charge increases to tenants presented to the remaining tenants on 29 October 2024 as attached at Appendix X3. Leaseholders were asked for their views at the Leasehold Forum on 16 January 2025. 31. agree to set an increase in dwelling rents of 2.7% (an average of £3.26 per week) – as per Government’s formula rent increases to be applied to rents for 2025/26 and as outlined in Section 9 of the report; 32. agree to set an increase in the hostels accommodation charge by 2.7% (or £1.07 per week), in accordance with Government’s direction for formula rent increases to be applied to rents for 2025/26; 33. approve the following average weekly increases/decreases for dwellings for: 33.1 service charges to Private Finance Initiative (PFI) managed dwellings (Brockley) to ensure full cost recovery and 3.7% inflationary uplift for 2025/26: ·                caretaking 3.7% (£0.18) ·                grounds 3.7% (£0.12) ·                communal lighting 3.7% (£0.08) ·                bulk waste collection 3.7% (£0.05) ·                window cleaning 3.7% (£0.00) ·                tenants’ levy 0.00% (£0.00) 33.2 service charges to Council managed dwellings to ensure full cost recovery and 2.7% inflationary uplift for 2025/26: ·                caretaking -8.99% -(£0.70) ·                grounds 9.40% (£0.25) ·                window cleaning 2.70% (£0.00) ·                communal lighting 100% (£6.00) ·                block pest control 2.7% (£1.28) ·                waste collection 2.70% (£0.08) ·                heating & hot water 7.70% (£1.23) ·                tenants’ levy 0.00% (£0.00) ·                bulk waste disposal 17.00% (£0.18) ·                sheltered housing 2.50% (£0.46) 34. approve the following average weekly percentage changes for hostels and shared temporary units for: ·     service charges (hostels) – caretaking etc.; 2.70% or £1.67pw energy cost increases for heat, light & power; 10.0% or £0.80pw; ·     water charges increase; 2.70% or £0.02pw; 35. approve an increase in garage rents by 2.70% (£0.55 per week) for Brockley PFI and Council residents as outlined in Appendix X4; 36. note that the budgeted expenditure for the Housing Revenue Account (HRA) for 2025/26 is £251.2m, split £113.5m revenue and £137.7m capital, which includes the decent homes and new build programmes; 37. agree the HRA Business Plan for 2025/26, as attached at Appendix X7; 38. note the 2024/25 P8 HRA Capital Programme monitoring position and the Capital Programme potential future schemes and resources as set out in Section 11 of the report; 39. agree to write-off five cases of Former Tenants’ Arrears totalling £66,752.22, as set out in Appendix X5; 40. agree to write of 16 cases of Aerial Debt arrears totalling £973,323.36, as set out in Appendix X5; Treasury Management Strategy 41. approve the Treasury Management Strategy 2025/26 including the prudential indicators and treasury indicators, as set out in Section 10 of the report; 42. approve the Annual Investment Strategy and Creditworthiness Policy, set out in further detail at Appendix Z2, and that it formally delegates responsibility for managing transactions with those institutions which meet the criteria to the Executive Director of Corporate Resources; 43. approve the Investment Strategy as set out in Section 10 of this report, along with the operational boundary & authorised limit for the year as set out in tables D4 and D5; 44. approve the Minimum Revenue Provision (MRP) policy as set out in Section 10 of the report; 45. approve the overall credit and counterparty risk management criteria, as set out at Appendix Z2, the proposed countries for investment at Appendix Z5, and that it formally delegates responsibility for managing transactions with those institutions meeting the criteria to the Executive Director for Corporate Resources; 46. agree to delegate to the Executive Director of Corporate Resources the authority during 2025/26 to make amendments to borrowing and investment limits provided they are consistent with the strategy and there is no change to the Council’s authorised limit for borrowing. Capital Programme 47. note the 2024/25 capital programme position and agrees the reprofiled 2024/25 Capital Programme of £177.2m as set out in Section 11 of the report; 48. approve the 2025/26 to 2028/29 Capital Programme of £421.4m as set out in Section 11 of the report; 49. agree the Capital Strategy set out in Appendix W1; 50. agree to delegate to the Executive Director for Corporate Resources authority to amend the scheme mix within the Capital programme to respond to the risks as set out as long as this is done within the total programme parameters approved and that regular updates on the capital programme, reflecting any changes, are regularly reported back to Mayor & Cabinet; Climate Budget 2025/26 – 2027/28 51. agree the Council’s Climate Budget 2025/26 – 2027/28 as set out in Section 12 and Appendix V1.