The Corporate and Resources Committee of Kingston upon Thames Council met on Tuesday 23 July 2024, addressing key financial outturns, strategic planning, and significant development projects. The committee approved the Medium Term Financial Strategy for 2025/26-2028/29, noted the 2023/24 revenue and capital budget outturn, and granted approval for the redevelopment of the former Murray House site on Acre Road into specialist housing.

Council Plan - End of Year Report 2023/24 and Delivery Plan 2024/25

The committee received and considered the Council Plan End of Year Report for 2023/24, which summarised progress on the council's priorities. It was noted that 78 out of 82 actions had been completed, with the remaining four to be carried forward into the 2024/25 plan. The draft Council Delivery Plan for 2024/25 was approved, subject to any comments from the People Committee. The Chief Executive was authorised to make final amendments to the plan in consultation with the Leader of the Council.

Revenue and Capital Budget Outturn 2023/24

A comprehensive report detailed the revenue and capital outturn positions for 2023/24. The General Fund reported a £3.199 million overspend, which was met by drawing down from earmarked reserves. The Housing Revenue Account (HRA) showed an underspend of £2.369 million. A significant overspend of £5.686 million was noted on the Schools Budget, primarily due to high demand for High Needs Education Services, contributing to a cumulative deficit on the Dedicated Schools Grant (DSG) Reserve of £4.689 million. The capital programme reported an overall underspend of £26.160 million, with £24.168 million of this being requested for slippage into future financial years due to project delays. The committee approved a capital budget of £3.44 million for a new fleet and depot works for the Household Waste and Recycling Contract.

Medium Term Financial Strategy 2025/26 - 2028/29

The committee was asked to approve the Medium Term Financial Strategy (MTFS) for 2025/26 to 2028/29. This strategy sets out the principles and framework for financial planning over the next four years, aiming to ensure long-term financial sustainability and resilience. The strategy acknowledges the challenging economic climate, with ongoing pressures on demand-led services and a significant budget gap projected for 2025/26. Key principles include setting a balanced budget, fully budgeting for demand-led growth, reflecting the revenue costs of the capital programme, considering all discretionary service budget proposals for savings, and maintaining adequate reserves and contingency budgets. An amendment proposed by Councillor James Giles to protect funding for children's playgrounds, parks, centres, and youth centres until at least 2026/27 was lost. The MTFS was ultimately approved.

Temporary Accommodation Acquisitions Strategy

The committee considered a report on a Temporary Accommodation Acquisitions Strategy, aiming to secure council-owned property to improve outcomes for homeless households, reduce reliance on expensive nightly-paid accommodation, and achieve better value for money. The strategy proposed a Hybrid Portfolio Approach, involving the acquisition of approximately 50 homes within the General Fund for Temporary Accommodation and the establishment of a special purpose vehicle to acquire around 150 homes. This approach is forecast to save the Council approximately £3 million per annum once fully implemented. A capital budget of £23.35 million was approved for the acquisition of the initial 50 homes. An amendment by Councillor Giles to ensure at least 50% of the acquired homes were within the Borough was lost.

Acre Road (Former Murray House) - Detailed Business Case for Site Redevelopment

The committee received an update on the progress of the redevelopment of the former Murray House care home on Acre Road. The project aims to deliver specialist and supported housing for older persons and individuals with learning disabilities. The committee granted approval to proceed to RIBA Stages 4-7, with a projected total project cost of £15,750,251, to be funded through HRA borrowing and GLA grant funding. Approval was also given for the submission of the planning application, the demolition of the existing buildings, and the appropriation of the site from the General Fund to the HRA. The procurement strategy was noted and approved, with an estimated completion date of Winter 2026. An amendment by Councillor Giles regarding the forced decanting of residents was lost, with officers explaining the rationale for the new build and the positive outcomes of previous decanting exercises.

Urgent Decision Taken under Procedure Rule 30 - Human Resources and Payroll System Procurement

The committee noted a report concerning an urgent decision taken under Procedure Rule 30 regarding the continuation of a shared contract arrangement for a new payroll system with the current provider. The decision was necessary due to the expiry of existing contract prices and the postponement of the committee meeting due to the General Election. The decision was to continue the shared contract arrangement between Kingston, Sutton, and Merton Councils.