The Cabinet of Hillingdon Council met on Thursday, 22 June 2023, to discuss the council's financial outturn for the 2022-23 financial year and to approve several financial recommendations. The meeting also included decisions on the Civic Centre transformation programme, a contract for gas heating maintenance, and the disposal of council-owned land at Warren Farm, Harefield.

Budget Outturn 2022/23

The Cabinet reviewed the council's financial performance for the 2022-23 financial year, which concluded on 31 March 2023. Councillor Martin Goddard, Cabinet Member for Finance, presented a report detailing the budget outturn. The council achieved a net underspend of £127,000 against its General Fund revenue budget for normal activities. This positive variance allowed for an increase in earmarked reserves, bringing the total to £20 million for the current financial year (2023-24). In addition, unallocated general balances amounted to £26.8 million, resulting in a total of £46.8 million in reserves available to the council.

The report highlighted significant financial pressures experienced during the year, including £14.9 million in exceptional costs related to COVID-19, with £3.6 million exceeding the budget and being absorbed by earmarked reserves. Inflation also had a substantial impact, with unbudgeted uses of earmarked reserves amounting to £4.8 million. Despite these challenges, the council successfully met its savings target of £13.3 million for 2022-23.

Capital expenditure for the General Fund in 2022-23 totalled £47.9 million. The Dedicated Schools Grant (DSG) saw a reduction in its deficit position by £1.7 million, although this was £700,000 worse than budgeted due to inflationary pressures within the high-needs block. The Housing Revenue Account (HRA) reported a surplus of £169,000 against its budget, with capital expenditure within the HRA amounting to £62.8 million.

Councillor Ian Edwards, Leader of the Council, commended the financial management, noting that the council's ability to achieve an underspend and increase reserves during a period of high inflation and COVID-19 legacy costs set it apart from many other local authorities. He also acknowledged the sticky nature of inflation and the need for ongoing review of savings targets.

The Cabinet approved the financial recommendations in Part B of the report, which included the re-phasing of £26,300k of General Fund Major Projects and £2,266k from the Programme of Works expenditure into future years, and the re-phasing of £9,734k of HRA capital expenditure into future years. They also approved the release of £500,000 from the General Contingency budget into Earmarked Reserves, and accepted two grant funding offers: £78,000 from the Department for Environment, Food, and Rural Affairs (Defra) for post-Brexit port health authority functions at Heathrow Imported Food Office, and £36,962 from North West London Integrated Care Board to address health inequalities among care leavers.

Civic Centre Transformation Programme 2023/24

The Cabinet accepted the tender from Greyline Ltd for refurbishment works to Phases 1, 2 and 3 of the Civic Centre, at a cost of £6,244,282.69. Capital release of £2,562,000 was agreed for the first two phases. Phase 1 includes pilot quadrant office refurbishments and staff breakout/reception areas, while Phase 2 includes Corporate Reception and Middlesex Suite refurbishment. Authority was delegated for further decisions on Phase 3 to the Leader of the Council, the Cabinet Member for Property, Highways and Transport, and the Cabinet Member for Finance.

Additionally, the Cabinet accepted a tender from Greyline Builders Limited for roof remedial and associated works to the Grade II listed Middlesex Suite at the Civic Centre, costing £750,608. A capital release of £936,000 was approved from the Civic Centre Transformation Programme for these external fabric remedial works, including asbestos removal.

Contract for Gas Fired Heating Installations

A contract was awarded to Village Heating Ltd for the servicing, repairs, and maintenance of gas-fired heating installations in domestic properties across the London Borough of Hillingdon. The contract is for an initial period of three years, with an estimated annual value of £1,051,000, and includes a provision for a two-year extension.

Warren Farm, Harefield

The Cabinet noted that no objections were received following the advertisement of the intention to dispose of Warren Farm, Breakspear Road North, Harefield, UB9 6LZ. The Cabinet then declared Warren Farm surplus to requirements and authorised the sale of the freehold interest in Warren Farm at the value and on the terms detailed in the report. Furthermore, they authorised the grant of a Farm Business Tenancy prior to the disposal of the freehold interest. Authority for all future decisions regarding this disposal was delegated to the Corporate Director of Place, in consultation with the Cabinet Member for Property, Highways & Transport.