The Corporate and Resources Committee of Kingston upon Thames Council met on Tuesday 20 February 2024 to discuss the council's financial position and future plans. Key decisions included the approval of the budget for the upcoming financial year, the recommendation of a strategy for the redevelopment of the Guildhall, and the approval of a capital budget for this project.

Revenue and Capital Budget Monitoring 2023/24

The committee received a report detailing the revenue and capital budget monitoring for the 2023/24 financial year as of month 9. The report highlighted the impact of high inflation on both revenue and capital expenditure, leading to a forecast overspend of £3.017m on the General Fund. This overspend is attributed to increased demand in adult and children's social care, as well as temporary accommodation costs, exacerbated by wider economic conditions. Mitigation measures include higher-than-budgeted income from cash balances and the release of bad debt provisions. The report also noted an overspend of £5.624m on the Schools Budget, primarily due to pressures in high needs education.

The committee noted the forecast outturn positions for the General Fund, Housing Revenue Account (HRA), Schools Budget, and the capital programme for 2023/24.

Medium Term Financial Strategy 2024/25 - 2027/28 and Detailed Budget 2024/25

The committee considered the proposed budget for 2024/25 to 2027/28. This included budgetary growth totalling £15.648m in 2024/25 and proposed savings of £7.989m in the same year. The report also detailed the Capital Strategy, Treasury Management Strategy, Pay Policy Statement, and the Schools Budget for the upcoming financial year.

Following discussions, the committee resolved to recommend to the full Council the approval of the budget proposals and Council Tax for 2024/25. They also recommended authorising officers to implement the agreed budget, including increasing fees and charges in line with inflation. The committee further recommended approving the Capital Strategy, Treasury Strategy, HRA budget, pay policy, and the Schools Budget.

Crucially, the committee recommended approving proposals to increase the Council Tax charge for long-term empty properties and second homes by 100% from April 2025, and to reduce the period before a Council Tax premium applies to such dwellings from two years to one year, effective from April 2024.

Guildhall Redevelopment/Future Workplace Programme

A significant portion of the meeting was dedicated to the Guildhall Redevelopment and Future Workplace Programme. The committee considered an Outline Business Case detailing options for the expansion and refurbishment of Main Guildhall to serve as the council's primary operational base. The report highlighted the underutilisation, inefficiency, and poor condition of the current Guildhall Campus, necessitating a strategic review.

The committee resolved to approve Option 2, which involves relocating functions from Guildhall 2 into a refurbished Main Guildhall with the addition of a new build extension, as the council's recommended relocation strategy. They also approved the procurement of a multi-disciplinary design team to develop detailed proposals and a Full Business Case (FBC), with a capital budget of £1.440m allocated for this purpose. Furthermore, the council will proceed with clearing Sessions House to lease it to a third party for income generation and decommission Guildhall 1. Authority was delegated to the Executive Director of Place to agree terms for the disposal of Guildhall 1.

Calendar of Meetings 2024/25

The committee reviewed the proposed timetable of meetings for the 2024/25 Municipal Year. Amendments were noted regarding the dates of the Council meeting in July 2024 and the Kingston and North Kingston Neighbourhood meeting in October 2024.

The committee recommended to Council the approval of the timetable of meetings for the 2024/25 Municipal Year, subject to amendments, and authorised the Corporate Head of Democratic and Electoral Services to make any necessary adjustments during the year.

Public Question Time

A question was raised regarding the costs incurred in investigating the potential sale of the Guildhall and its marketing as a luxury hotel. Councillor Kirsch, Leader of the Council, confirmed that a feasibility study under the previous administration had incurred £33,500 in consultancy fees, with no formal decisions taken at that time. He reiterated the current administration's commitment to retaining and refurbishing the historic Guildhall as the civic heart of the Borough.

Declarations of Interest

Councillor Richard Thorpe declared an Other Registrable Interest as a member of the Board of the Joint Venture LLP for the Cambridge Road Estate regeneration programme. Councillor James Giles declared a Disclosable Pecuniary Interest as a leaseholder of the Council, specifically in relation to recommendation 9 of item 7 on the agenda (Medium Term Financial Strategy and Detailed Budget), and stated he would not be voting on that particular recommendation.