The Cabinet of Barking and Dagenham Council met on Tuesday 23 January 2024 to discuss a range of financial and operational matters. Key decisions included approving a 7.7% increase in council house rents for 2024/25, agreeing to a new Council Tax Support scheme for working-age residents, and approving a £24.7 million capital programme for the Housing Revenue Account. The Cabinet also noted the Council's revenue budget monitoring position, which indicated a projected overspend of £10.54 million for the General Fund and £5.05 million for the Housing Revenue Account.

Revenue Budget Monitoring 2023/24 (Period 8)

The Cabinet received an update on the Council's revenue budget monitoring for the 2023/24 financial year as of the end of November 2023. The General Fund was projected to overspend by £10.54 million, a positive movement of £1.065 million from the previous period. The Housing Revenue Account (HRA) was projected to overspend by £5.05 million, an improvement of £2.029 million from the previous period. Councillor Dominic Twomey, Leader of the Council, highlighted that while these movements were positive, continued efforts were needed to reduce spending due to ongoing pressures, particularly in social care. He also referenced a letter from Conservative MPs criticising the Chancellor for insufficient local government funding. The Cabinet noted these positions and the projected drawdowns from reserves.

HRA Budget and Rent Setting for 2024/25 and Draft 30-Year Business Plan

Cabinet approved a 7.7% increase in council house rents for general needs, affordable, and sheltered housing accommodation for 2024/25. This increase aligns with the government's policy of CPI + 1%, with the September 2023 CPI at 6.7%. This will result in an average weekly rent increase from £108.72 to £117.07 for general needs properties. Service charges for grounds maintenance, concierge, CCTV, and TV aerials will also increase in line with CPI + 1% or cost recovery, while heating and hot water charges will decrease by 5.5%. Water charges will increase by 10%, and sewerage charges will remain the same. A £24.7 million capital programme for the HRA in 2024/25 was also approved, alongside noting the draft 30-year HRA business plan. Cabinet acknowledged the challenges of rising costs and the balance sought in the proposals, highlighting the Council's new homes programme through B&D Reside and the support offered to tenants struggling financially.

Dedicated Schools Budget and School Funding Formula 2024/25

The Cabinet approved the strategy for the Dedicated Schools Budget (DSG) for 2024/25 and the principles for the Local Schools Funding Formula. The indicative DSG allocation for 2024/25 is £367.846 million, an increase of £25.5 million from the previous year. The preferred approach for the Schools Block funding is Model C, which allocates additional funding to the primary sector to achieve a 1:1.36 ratio between primary and secondary phases, a deviation from the national formula's 1:1.42 ratio. Early Years funding rates will increase to £5.15 per hour for three and four-year-olds and £6.09 per hour for two-year-olds. Cabinet delegated authority for the final approval of the school funding formula to the Strategic Director, Children and Adults, in consultation with relevant officers and the Cabinet Member for Educational Attainment and School Improvement.

School Place Planning and Capital Investment Update

The Cabinet received an update on school place planning and capital investment. Projections indicate a decline in demand for primary school places until around 2028, with a subsequent slow recovery. This is partly due to falling birth rates and families moving out of London, although new housing developments are expected to increase demand in specific areas. The Council is reviewing the school estate for rationalisation opportunities and potential creation of specialist provision due to rising demand for SEND places. Notable capital projects approved include the remodelling of Trinity School, conversion of Rectory Road Library for Mayesbrook School's Outreach Tuition Plus service, and expansion of Alternative Resource Provisions (ARPs) at Mayesbrook School and All Saints Catholic Secondary School. Barking Abbey School has been selected for the DfE's Schools Rebuilding Programme, with works expected from April 2025.

Council Tax Support Scheme 2024/25

Cabinet recommended the Assembly to adopt Model 1, an income-banded discount Council Tax Support (CTS) scheme, for working-age residents from April 2024. This new scheme aims to simplify administration, improve compatibility with Universal Credit, and provide consistent support. While the overall cost is projected to be fiscally neutral, some residents may see changes to their awards. The scheme will disregard certain incomes, including disability benefits and some Universal Credit elements, and introduce a flat rate non-dependant deduction of £7.50 per week. The capital limit will be reduced to £6,000. Cabinet also agreed to carry forward £250,000 from the Welfare Reserve to the Council Tax Discretionary Hardship Fund to support those potentially worse off under the new scheme.

Debt Management Performance 2023/24 (Quarter 2)

The Cabinet noted the debt management performance report for the second quarter of the 2023/24 financial year. Collection rates have improved in some areas, such as General Income and Adult social care costs, and arrears from previous years have also reduced. However, overall Council Tax collection rates are slightly lower than the previous year, attributed to factors like the energy rebate scheme and discount reviews. The report highlighted a significant reduction in total arrears since the start of the year, with most outstanding debt being managed through enforcement agents. Improvements in communication with debtors and the introduction of online payment options were also noted.

Calculation and Setting of the Council Tax Base 2024/25

The Cabinet agreed that the Council Tax Base for 2024/25 shall be 54,916.54 Band 'D' properties. This figure represents an increase of 3% from the previous year. The report explained that the tax base is calculated based on the number of properties, anticipated changes, discounts, exemptions, and collection rates. The increase in the tax base, combined with the proposed 4.99% Council Tax rate increase, is projected to generate an additional £6.3 million in Council Tax income for 2024/25.

Corporate Plan 2023-2026 - Outcomes Framework Performance Report Q1 and Q2 2023/24

Cabinet received the first performance overview report for the new Corporate Plan, covering the first two quarters of the 2023/24 financial year. The report presented data on 53 of the 54 outcome measures, using a RAG rating system to highlight performance against targets. Key areas of good performance included 96.6% of schools being rated Good or Outstanding by Ofsted and an increase in overall tenant satisfaction with housing management services to 64.5%. However, fly-tipping incidents increased to 17.1 per 1,000 people, exceeding the target of 15. Six outcome measures were identified as 'Red RAG' rated with a negative direction of travel, which will be subject to further focus and deep-dive analysis.

Oxlow Lane Redevelopment - Approval of Disposal, Head Lease and Loan Facility Agreement

Cabinet approved, in principle, the disposal of the Oxlow Lane redevelopment scheme by granting long leases to appropriate Reside entities. This involves the transfer of 63 new homes into the Reside portfolio. The decision also delegates authority to the Strategic Director, Resources, to finalise the terms of the loan, lease, and associated documents, and to the Head of Legal to execute these agreements. This action is part of the Council's Investment and Acquisition Strategy to increase affordable housing and ensure efficient property management.

Procurement Strategy for the LBBD Development Framework 2024 - 2028

Cabinet agreed to proceed with the procurement of a new four-year Development Framework for construction new build works, managed by Be First on behalf of the Council. This framework will cover works under £50 million and works in excess of £50 million, with 10 contractors appointed to each lot. The estimated total value of contracts awarded under this framework is up to £1.3 billion. Be First will manage the framework, with a management charge payable to the Council to cover their costs. This strategy aims to ensure consistent best value delivery and address lessons learned from the previous framework, such as improving competition and resilience.

Procurement of 8x8 Telephony Services Contract

Cabinet agreed to the procurement of a new two-year contract for 8x8 Unified Communications as a Service (UCaaS) and Contact Centre as a Service (CCaaS) through the G-Cloud 13 Framework. This contract, estimated at £350,000 per year, will replace the existing arrangement which expires in March 2024. The decision was made based on the view that transitioning to a new platform at this time would not offer significant advantages, considering the advancements in AI and automation expected in the future.

Procurement of Culvert Repair Works at Choats Road, Barking

Cabinet agreed to proceed with the procurement of a design and build contract for repair and strengthening works to the culvert bridge at Choats Road, Barking. The estimated cost for these essential works is £850,000. The culvert is a critical gateway to Barking Riverside and a key logistics route to Dagenham Dock, and its failure could have significant consequences. Cabinet delegated authority to the Director of Public Realm, in consultation with relevant officers, to award and enter into the contract, subject to budget provision.

The meeting concluded with the Chair declaring no urgent public items and the meeting being declared closed.