The Resources and Public Realm Scrutiny Committee of Brent Council met on Wednesday 17 July 2024 to review the council's financial position and progress on scrutiny recommendations. Key discussions included the 2023-24 financial outturn, the Q1 financial forecast for 2024-25, and the medium-term financial outlook, highlighting significant budget pressures and the need for future savings. The committee also reviewed the Scrutiny Recommendations Tracker, noting progress on previous recommendations and suggestions for improvement.

Budget Update - Medium Term Financial Strategy

The committee received a comprehensive update on Brent Council's financial position, covering the 2023-24 financial outturn, the Q1 financial forecast for 2024-25, and the medium-term financial outlook. Councillor Mili Patel, Deputy Leader and Cabinet Member for Finance & Resources, presented the reports, highlighting a £10 million forecast overspend against the General Fund revenue budget at Quarter 1 of 2024-25. This overspend is primarily attributed to high demand for homelessness services and temporary accommodation, a national issue particularly acute in London. The council is implementing spending controls and other mitigating actions to manage these pressures.

The medium-term financial outlook indicates a challenging environment with an estimated budget gap of £16 million in 2025/26, rising to a cumulative £30 million by 2027/28. This is driven by uncertain government funding, rising interest rates, increased demand for services, and ongoing cost-of-living pressures. The council has already delivered significant savings and faces the need for further substantial savings to balance the budget. The report also detailed the proposed budget-setting process for 2025/26, which includes consultation with residents and stakeholders.

The committee noted the significant pressures on the Housing Revenue Account due to rent limitations and increased repair costs, as well as the legacy deficit of £15.1 million within the Dedicated Schools Grant. The capital programme also faces risks of slippage due to project complexity.

Scrutiny Progress Update - Recommendations Tracker

The committee reviewed the updated Scrutiny Recommendations Tracker, which documents the progress of recommendations, suggestions for improvement, and information requests made by the committee. Councillor Rita Conneely, Chair of the committee, introduced the report.

Key discussions included:

• Budget Scrutiny Task Group Findings: Members sought further clarification on the remit of the Income & Debt Board regarding strategic commissioning and procurement, and the specific proposals for a green budget outlining climate and environmental implications. Councillor Muhammed Butt, Leader of the Council, assured members that strategic commissioning and procurement were within the Board's scope and that climate and environmental considerations were now a required section in all decision reports.
• Regeneration in Brent: The committee noted the updates on regeneration activity, including the challenges of financial viability, build cost inflation, and the need for government policy consistency. Concerns were raised about the reduction in social housing provision in some schemes, such as in South Kilburn, and issues with build quality. The council reiterated its commitment to affordable housing targets but acknowledged the need for flexibility in scheme viability.

The committee agreed to note the updates within the Scrutiny Recommendation Tracker, subject to the actions detailed in the report.

Other Matters

The committee also noted that the final scrutiny work programme planning session had been rescheduled due to the General Election and would now take place on Monday 22 July 2024, with the 2024-25 work programme to be presented for endorsement in September. No other urgent business was raised.