The Cabinet of Barking and Dagenham Council met on Tuesday 14 November 2023 to discuss the council's revenue budget monitoring, net zero carbon roadmaps, and the annual education performance review. Key decisions included noting a projected £12.652 million overspend on the General Fund and a £7.080 million overspend on the Housing Revenue Account, approving the Net Zero Carbon Roadmaps and Delivery Framework, and endorsing the draft Education and Participation Strategic Plan 2023-26.

Revenue Budget Monitoring 2023/24 (Period 6, September 2023)

The council is forecasting a significant overspend of £12.652 million for the General Fund in the 2023/24 financial year. This represents a worsening of £1.614 million compared to the previous period. The Housing Revenue Account (HRA) is also projecting an overspend of £7.080 million. These overspends are attributed to various pressures, including increased demand and costs in social care, inflation, and the non-achievement of some in-year savings targets. The council's reserves are being drawn down to mitigate these pressures, but this is noted as an unsustainable long-term solution. Councillor Darren Rodwell, Chair of Cabinet, highlighted the unprecedented financial challenges faced by local authorities, attributing them in part to the government's austerity measures. Councillor Maureen Worby suggested a coordinated campaign with other North East London boroughs to lobby the government for increased funding. Cabinet resolved to note the projected overspends and the returns for the Investment and Acquisition Strategy.

Barking and Dagenham Net Zero Carbon Roadmaps and Framework

Councillor Kashif Haroon, Cabinet Member for Public Realm and Climate Change, presented the council's science-based plan to achieve carbon neutrality by 2030 for the authority and net zero for the wider borough by 2050. The council's operational carbon footprint is 119,000 tonnes of carbon annually, with the wider borough at 560,000 tonnes. Challenges include the significant cost of replacing refuse vehicles (£9 million) and switching to renewable energy supplies (£200,000 per year extra). A key finding is that 77% of the council's carbon footprint comes from its contractors and supply chains. The report outlines operational and borough-wide roadmaps and a delivery framework. Initiatives already underway include the Cosy Homes programme, deep retrofit pilots, securing £48.8 million in grant funding for decarbonisation, installing electric vehicle charging points, and using parks as natural carbon sinks. International partnerships, such as with the Seoul Digital Foundation, are also being developed. Councillor Cameron Geddes questioned the cost of retrofitting the council's housing stock, estimated at £870 million to £1 billion. Cabinet resolved to approve the Council's Operational Net Zero Carbon Roadmap, the Borough-wide Net Zero Carbon Roadmap, and the Net Zero Delivery Framework.

Annual Education Performance Review 2022/23 and Education and Participation Strategic Plan 2023-26

Councillor Elizabeth Kangethe, Cabinet Member for Educational Attainment and School Improvement, and Councillor Jane Jones, Cabinet Member for Children’s Social Care and Disabilities, presented the annual education performance review and the draft Education and Participation Strategic Plan (EPSP) for 2023-26.

Despite the challenges posed by the pandemic and the cost of living crisis, the borough's schools have shown significant achievements. Key performance highlights include:

• Ofsted Ratings: 96.6% of schools were rated 'Good' or 'Outstanding' by Ofsted as of September 2023, exceeding the national average.
• Early Years Foundation Stage (EYFS): The percentage of pupils achieving a Good Level of Development rose to 65.2%, with the gap to the London average decreasing.
• Key Stage 2: Performance in Reading, Writing, and Maths combined was broadly in line with the national average.
• GCSEs: Barking & Dagenham schools bucked the national trend with improvements compared to 2019, performing above the national average in key measures like grades 9-4 in English and Maths. Progress 8 scores were also strong.
• A Levels: Results were the best ever (excluding pandemic years), with significant improvements in A*-B and A*-C grades, placing the borough above the national average for A*-C grades for the first time.
• Disadvantaged Pupils and Vulnerable Groups: These groups outperformed national averages at various key stages in measures such as Progress 8 and attainment in English and Maths.
• Higher Education (HE) and Apprenticeships: Progression to HE rose by 8%, with over a third of students gaining places at competitive universities. Degree-level apprenticeships were secured with major organisations.
• NEET Figures: The proportion of young people not in education, employment, or training (NEET) remained low at 2.9%, performing better than national and London benchmarks.
• Alternative Provision (AP): A review by Ofsted was generally positive, highlighting effective support for vulnerable children.
• Looked After Children (LAC): Key Stage 4 Progress 8 scores remained strong, placing the borough in the second strongest performance quartile nationally.

Councillor Kangethe highlighted the challenges faced by children and young people, including mental health issues and the cost of living crisis, but stressed the resilience and achievements of the borough's students. Councillor Jones emphasised the council's commitment to inclusive schools and supporting children with SEND.

Councillor Maureen Worby raised concerns about children attending school hungry due to the cost of living crisis and asked for more information on improving work experience opportunities. Councillor Kangethe responded that work experience was a challenge post-pandemic but that partnerships were being developed to address this. Councillor Syed Ghani inquired about attendance barriers, to which Councillor Kangethe explained that post-pandemic attendance had been a national challenge, but improvements were being seen with new dedicated attendance posts. Councillor Sade Bright asked for clarification on performance against London standards, and Councillor Kangethe confirmed that the gap was narrowing.

Cabinet resolved to reaffirm the council's commitment to partnerships, note the performance update, and endorse the draft Education and Participation Strategic Plan 2023-26.

Revenue Budget Monitoring 2023/24 (Period 6, September 2023)

The council is facing a projected overspend of £12.652 million for the General Fund in the 2023/24 financial year, an increase of £1.614 million from the previous period. This worsening financial position is largely due to increased demand and costs in social care services. The Housing Revenue Account (HRA) is also forecasting an overspend of £7.080 million. Mitigating actions are being pursued to limit the overspend by year-end. The council's general fund balances stand at £17 million, with a policy requiring a minimum of £12 million, leaving only £5 million available if needed. The use of reserves is considered a last resort. Councillor Darren Rodwell, Chair of Cabinet, reiterated the significant financial challenges faced by local authorities due to austerity measures and the cost of living crisis. Councillor Maureen Worby suggested a coordinated campaign with other North East London boroughs to lobby the government for increased funding. Cabinet resolved to note the projected overspends for both the General Fund and HRA, and the projected returns for the Investment and Acquisition Strategy.

Treasury Management and Investment and Acquisition Strategy 2023/24 Mid-Year Review

The Cabinet Member for Finance, Growth and Core Services presented the mid-year review of the council's treasury management activities and Investment and Acquisition Strategy (IAS). The report highlighted that the council had complied with all treasury management indicators for the year. However, the forecast outturn for treasury and the IAS is projected to be nearly £6 million lower than the previous year. Key pressures include significantly increased interest rates impacting borrowing costs, delays in letting private rental units and selling shared ownership properties, underperformance from council subsidiaries like Be First, and slower than anticipated commercial lettings. The council's general fund balances are forecast to be drawn down, leaving £5 million available from reserves if needed. The report also detailed the council's borrowing position, which stands at £1.276 billion, and noted that the IAS is forecasting a net surplus of £207,000, while the General Fund treasury strategy is forecasting a surplus of £454,000. Cabinet resolved to recommend to the Assembly that they note the Treasury Management Strategy Statement Mid-Year Review, the economic update, the pressures impacting the IAS returns, the treasury investments and cash balances, residential loans, borrowing figures, HRA and IAS interest payable forecasts, interest receivable, IAS operational income, net IAS and GF treasury strategy surplus, and compliance with treasury management indicators.

Fees and Charges 2024

The Cabinet Member for Finance, Growth and Core Services presented the proposed fees and charges for council services, effective from 1 January 2024. The report outlined three fundamental principles for charging: services should raise income where possible, income should cover full costs, and any departures must be justified. Due to high inflation, some charges may not achieve full cost recovery, and a further report may be needed before April 2024. A specific increase was proposed for the green garden waste collection fee, from £43 to £50. Councillor Maureen Worby suggested improving communication on the website to explain the rationale behind fee increases, which was agreed by the Cabinet Member. Cabinet resolved to agree the proposed fees and charges, note those no longer applicable, and delegate authority for setting school-related fees to the Strategic Director for Children and Adults.

Procurement Strategy for Housing Major Works

Councillor Cameron Geddes, Cabinet Member for Regeneration and Economic Development, presented the proposed procurement strategy for Housing Major Works. The strategy recommends using the South East Consortium (SEC) framework, which offers value for money and allows leaseholders to suggest contractors. The procurement will address various works including lift replacements, fire safety improvements, communal heating, external fabric repairs, roof replacements, conversions, decent homes internal and external works, adaptations, water tank replacements, renewable energy systems, external and communal painting, fixed wire testing, and sprinkler systems. Councillor Sade Bright highlighted the importance of involving leaseholders and the alignment with the Net Zero Carbon target, noting that contractors' contributions to carbon reduction would be considered. Cabinet resolved to agree the proposed management strategy of using the SEC framework and delegate authority for awarding contracts to the Strategic Director of My Place.

Private Business

Cabinet resolved to exclude the public and press from the remainder of the meeting due to the discussion of commercially confidential information relating to the potential acquisition of land at Thames Road, Barking.

Potential Acquisition of Land at Thames Road, Barking

The Cabinet Member for Regeneration and Economic Development presented a report on the potential acquisition of two key plots of land within the Thames Road Transformation Area. The decision was made to submit bids for these sites, with authority delegated to the Strategic Director, Resources, in consultation with the Cabinet Member for Finance, Growth and Core Services and the Head of Legal, to complete the necessary documentation should the bids be successful.

The meeting concluded with the Cabinet resolving to exclude the public and press for the discussion of this item due to its commercially confidential nature.