The Cabinet of Barking and Dagenham Council met on Monday 19 February 2024 to discuss the council's revenue budget monitoring for the 2023-24 financial year and to approve the budget framework for 2024-25, including a council tax increase. Key decisions also included the approval of the Treasury Management Strategy Statement, the Capital Strategy, and the Pay Policy Statement for the upcoming year.

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

The Cabinet noted the projected £9.336 million revenue overspend forecast for the General Fund for the 2023/24 financial year. This figure represents an improvement of £1.203 million on the position at period 8. The Housing Revenue Account (HRA) also showed a projected overspend of £5.005 million. Cabinet resolved to note these figures and the projected year-end drawdown from reserves to support the in-year position. A presentational adjustment was made, moving the Capitalised Interest budget of £4.542 million from General Fund revenue funding to the Central Expenses budget to improve transparency of the Investment and Acquisition Strategy (IAS) budget.

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

The Cabinet recommended to the Assembly that the basic amount of Council Tax (Band D equivalent) should increase by 4.99%, comprising a 2.99% increase for general spending and a 2% precept for adult social care. This will result in a Band D property paying £1,531.35 annually for council tax, with an additional £471.40 levied on behalf of the Greater London Authority. The Council's General Fund revenue budget for 2024/25 was set at £221.745 million, which includes £15.595 million in savings and £54.129 million in growth. To balance the budget, £8.809 million will be drawn from reserves. The Cabinet also approved the proposed General Fund Medium Term Financial Strategy 2024/25 to 2026/27 and the provisional Capital Programme for the same period. The Chief Financial Officer's Statutory Finance Report (Section 25 Statement) was noted, confirming the robustness of the estimates and the adequacy of proposed financial reserves.

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

The Cabinet recommended the Assembly to approve the Treasury Management Strategy Statement (TMSS) for 2024/25, which includes the Annual Investment Strategy, Borrowing Strategy, and Capital Prudential and Treasury Indicators for 2024/25 to 2026/27. An Operational Boundary Limit of £1.9 billion and an Authorised Borrowing Limit of £2.0 billion for 2024/25 were approved. The Capital Strategy, including the Capital Programme for 2024/25 to 2026/27, and the revised Minimum Revenue Provision Policy Statement for 2024/25 were also approved. The Council's total borrowing was noted at £1.260 billion.

Innovative Sites Programme

Cabinet approved the freehold disposal of thirteen sites within Workstream 1 of the Innovative Sites Programme. Authority was delegated to the Strategic Director of Inclusive Growth to approve the inclusion or exclusion of sites and their allocation to the three workstreams, acting on the advice of the Council's Assets and Capital Board. The Strategic Director, Inclusive Growth, in consultation with the Cabinet Member for Regeneration and Economic Development, was also delegated authority to approve the assessment criteria for schemes put forward 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.

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

Cabinet approved, in principle, the disposal of 558 new homes across these three redevelopment projects by granting long leases to the appropriate Reside entities. The indicative draft Heads of Terms for these leases and associated loans were also approved. Authority was delegated to the Strategic Director, Resources, in consultation with the Strategic Director, Inclusive Growth, to finalise the terms of the loans, leases, and any other necessary documents, ensuring compliance with relevant legislation. The Head of Legal, in consultation with the Strategic Director, Inclusive Growth, was delegated authority to execute all legal agreements.

Valence House Museum and Borough Archive Conservation Project

Cabinet approved the inclusion of the Valence House Museum and Borough Archive Conservation project in the Capital Programme with a total investment 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 necessary agreements with the Arts Council. Cabinet 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

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

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 recommended to the Assembly the approval of the Pay Policy Statement for the London Borough of Barking and Dagenham for 2024/25. This statement, which will be published on the Council's website, outlines the Council's approach to the remuneration of its chief officers and other employees, in accordance with the Localism Act 2011.