The Cabinet of Barking and Dagenham Council met on Monday 19 February 2024 to discuss the council's financial position, including budget monitoring and the framework for the upcoming financial year. Key decisions included approving a 4.99% Council Tax increase and noting a projected revenue overspend for the current financial year.

Revenue Budget Monitoring 2023/24 (Period 9, December 2023)

The Cabinet noted the projected £9.336m revenue overspend for the General Fund for the 2023/24 financial year. This figure represents an improvement of £1.203m on the position at period 8. The Housing Revenue Account (HRA) is also projected to have a £5.005m overspend. To support the in-year position, a net projected year-end drawdown of £4.73m from reserves is anticipated. The Cabinet also noted the projected returns for the Investment and Acquisition Strategy (IAS) and the movement in reserve drawdowns, with a further report to be presented on the final outturn post-March 2024. A transfer of the Capitalised Interest budget of £4.542m from General Fund revenue funding to the Central Expenses budget was also noted to improve transparency.

Budget Framework 2024/25 and Medium Term Financial Strategy 2024/25 to 2026/27

The Cabinet resolved to recommend to the Assembly that the Council Tax for 2024/25 be increased by 4.99%. This comprises a 2.99% increase for general spending and a 2% increase ringfenced for adult social care. For a Band D property, this will result in a total Council Tax of £1,531.35, an increase of £72.78 per year. The Greater London Authority (GLA) precept will add a further £471.40, representing an 8.6% increase. The Council Tax base for 2024/25 is set at 54,916.54 Band D properties.

The proposed General Fund revenue budget for 2024/25 is £221.745m, which incorporates £15.595m of savings and £54.129m of growth. To balance the budget, an £8.809m drawdown from reserves is required. The Medium Term Financial Strategy (MTFS) for 2024/25 to 2026/27 was also approved, noting that additional permanent savings proposals will need to be identified. The proposals aim to maintain a General Fund balance of £12m, in line with the Council's Reserves Policy.

The provisional Capital Programme, including IAS schemes, for 2024/25 to 2026/27 was approved, with a Capital Budget for 2024/25 set at £209.462m. The Strategy for the Flexible Use of Capital Receipts for 2024/25 was also approved. The Chief Financial Officer's Statutory Finance Report (Section 25 Statement) was noted, particularly its determination on the robustness of estimates and the adequacy of proposed financial reserves.

Treasury Management Strategy Statement 2024/25 and Capital Strategy 2024/25 to 2026/27

The Cabinet resolved to recommend to the Assembly the approval of the Treasury Management Strategy Statement for 2024/25. This includes noting the current treasury position and interest rate prospects, approving the Annual Investment Strategy 2024/25, the Council's Borrowing Strategy 2024/25 to 2026/27, and the Capital Prudential and Treasury Indicators 2024/25 to 2026/27.

An Operational Boundary Limit of £1.9bn and an Authorised Borrowing Limit of £2.0bn for 2024/25 were approved. The Capital Strategy, including the Capital Programme for 2024/25 to 2026/27, was also approved. Additionally, the revised Minimum Revenue Provision Policy Statement for 2024/25 was approved, outlining the Council's policy on debt repayment. Authority was delegated to the Strategic Director, Resources, in consultation with the Cabinet Member for Finance, Growth and Core Services, to proportionally amend counterparty lending limits. The economic, development, and operational risks for IAS schemes were noted, as was the Council's total borrowing of £1.260bn. Finally, it was noted that the Investment and Acquisitions Strategy would be updated and presented for approval in April 2024.

Innovative Sites Programme

The Cabinet approved the freehold disposal of sites within Workstream 1 of the Innovative Sites Programme (ISP). Authority was delegated to the Strategic Director of Inclusive Growth to approve the inclusion or exclusion of sites to the ISP and their allocation to the three workstreams, acting on the advice of the Council's Assets and Capital Board. Further delegation was given to the Strategic Director, Inclusive Growth, in consultation with the Cabinet Member for Regeneration and Economic Development, to approve the assessment criteria for schemes proposed by external organisations or groups. Finally, authority was delegated to the Strategic Director, Resources, acting on the advice of the Assets and Capital Board, to approve final land values and disposals, and to the Head of Legal, in consultation with the Strategic Director, Inclusive Growth, to execute all necessary legal agreements and contracts.

Padnall Lake Phase 2, Gascoigne East Phase 3A Block I and Gascoigne West Phase 2 - Approval of Disposals, Head Leases and Loan Facility Agreements

The Cabinet approved, in principle, the disposal of new build schemes at Padnall Lake Phase 2, Gascoigne East Phase 3A Block I, and Gascoigne West Phase 2 by granting long leases to the appropriate Reside entities. Approval was also given, in principle, to the indicative draft Heads of Terms for leases and loans for these developments. Authority was delegated to the Strategic Director, Resources, in consultation with the Strategic Director, Inclusive Growth, to agree and finalise the terms of the loans, leases, and any other associated documents, ensuring compliance with relevant legislation. The Head of Legal, in consultation with the Strategic Director, Inclusive Growth, was also delegated authority to execute all necessary legal agreements and contracts.

Valence House Museum and Borough Archive Conservation Project

The Cabinet approved the inclusion of the Valence House Museum and Borough Archive Conservation project in the Capital Programme with a total sum of £1,206,250. This funding comprises £881,250 from the Arts Council of England grant, £150,000 from the UK Shared Prosperity capital grant, and £175,000 from the Council's Parks Commissioning capital budget for lakes and watercourses. The planned trajectory for project delivery was noted, and authority was delegated to the Strategic Director, Inclusive Growth, in consultation with the Head of Legal, to enter into all necessary agreements with the Arts Council. It was also noted that further significant fundraising will be required in the next 2-5 years to meet the Council's statutory responsibilities for its listed heritage sites and accredited Borough Archives.

Social Infrastructure Contract 2024-2028

The Cabinet agreed that the Council should proceed with the procurement of a contract for a Social Infrastructure support service, in accordance with the strategy outlined in the report. Authority was delegated to the Chief Executive, in consultation with the Cabinet Member for Community Leadership and Engagement, the Strategic Director, Resources, and the Head of Legal, to conduct the procurement, award the contract, and enter into all necessary agreements.

Procurement of an Internet Proxy and VPN Services Contract

The Cabinet agreed that the Council should proceed with the procurement of a contract for an Internet Proxy and VPN Supplier via the CCS RM6100 – Technology Services 3 Framework Lot 3a – End User Services. Authority was delegated to the Strategic Director, Resources, in consultation with the Cabinet Member for Finance, Growth and Core Services and the Head of Legal, to conduct the procurement, award the contract, and enter into all necessary agreements.

Pay Policy Statement 2024/25

The Cabinet resolved to recommend to the Assembly the approval of the Pay Policy Statement for the London Borough of Barking and Dagenham for 2024/25. This statement will be published on the Council's website with effect from April 2024.