The Cabinet of Merton Council met on Tuesday 17 September 2024, approving a strategy to support those seeking sanctuary in the borough and a pilot job brokerage service. The meeting also reviewed the council's financial performance and future budget plans.

Borough of Sanctuary Strategy and Action Plan

Cabinet agreed to adopt the Borough of Sanctuary Strategy and Action Plan 2024-2028, which outlines the council's commitments to supporting refugees and asylum seekers. This strategy will form the basis of Merton Council's application to become an accredited Borough of Sanctuary by City of Sanctuary UK. The plan was developed through extensive engagement with stakeholders, including refugees and asylum seekers themselves, and aligns with the council's strategic priority of Nurturing Civic Pride. The strategy aims to promote the rights and welfare of those seeking safety, help them feel part of the borough, foster a sense of community, and celebrate their contributions. The council will apply for Borough of Sanctuary status by the end of October 2024.

Proposal to Pilot Employ Merton: A Job Brokerage and Finding Service

Cabinet approved the proposal to implement a one-year pilot of an employment brokerage service, to be known as 'Employ Merton'. A budget of £500,000 has been allocated from the Strategic Priorities Reserve to fund this initiative. The pilot aims to build financial resilience and a local resilient workforce by bringing together skills and expertise within the council to support residents seeking employment. This aligns with the council's Nurturing Civic Pride priority and is also seen as a way to get ahead of potential future government directives on employment support. The service will focus on supporting residents into good jobs with high retention rates and will also assist businesses with their recruitment efforts.

Financial Monitoring Report Period 4

The Cabinet noted the financial reporting data for period 4 (July), which indicated a forecast net adverse variance of £16.928 million when corporate and funding items are included. This challenging position is largely attributed to significant inflationary cost increases and a surge in demand for services in Adult Social Care, Children's Social Care, and the provision of temporary accommodation. The council is implementing measures to control rising costs and reduce the projected variance. Cabinet approved proposed adjustments to the programme in Appendix 5b, including the reprofiling of Parks Investment – Playground Priority Upgrade Prog and an increase to the Borough Regeneration – Schools Living Walls scheme due to inflation.

Cabinet also approved a revenue budget virement in Adult Social Care to transfer budget from Meadowsweet to Learning Disabilities placements following the closure of Meadowsweet. They noted the revision of fees for the client financial affairs service and approved the draw down of £1,021,677 from the Children and Education grants reserve for Early Years Family Hubs, Early Years Supporting Families, and Free School Meals Grant. Additionally, £583k was approved to be drawn down from the Cost-of-Living reserve to the Innovation & Change directorate's revenue budgets.

Budget 2025/26 and MTFS 2025-29

Cabinet noted the approach to rolling forward the Medium Term Financial Strategy (MTFS) for 2025-29 and agreed the timetable for the Financial Management cycle 2025-29. This includes the revenue budget for 2025/26 and the Capital Programme for 2025-29. The report highlighted a significant budget gap in future years, necessitating an early start to the budget-setting process. Adjustments to pay and price inflation forecasts, concessionary fares, corporate contingency, and provision for excess inflation were discussed, leading to a revised MTFS gap of £7.318 million for 2025/26. A Grant Thornton review indicated robust financial management but recommended reviewing risk built into the MTFS and developing clear evidence-based prioritisation criteria.

Treasury Management Strategy - 2023-24 Annual Review

Cabinet noted the update on Merton's treasury management activity during 2023-24, confirming that treasury funds were well managed and actions taken fell within CIPFA regulations and guidelines. The report highlighted that good income had been secured from investments, generating approximately £8 million more than budgeted, which contributed positively to the revenue position. The council's gross borrowing remained within its authorised limit, and the Capital Financing Requirement (CFR) was managed prudently. The council had not taken on new borrowing since 2007, and had actively paid off significant portions of its PWLB and LOBO loans. Investment income significantly exceeded the budget due to high interest rates and the investment of proceeds from the sale of CHAS 2013 Ltd.

BCF - Entry into s75 Agreement with SWL ICB for 23-25 BCF Plan

Cabinet agreed to enter into a Section 75 (s75) legal agreement with NHS South West London Integrated Care Board (SWL ICB) to pool and receive Better Care Fund (BCF) monies for the financial years 2023-25. This agreement is a national planning requirement for the BCF. Cabinet delegated authority to the Executive Director for Adult Social Care, Integrated Care and Public Health, in consultation with the Cabinet Member for Health & Social Care, to negotiate and finalise the terms of the s75 Agreement. The agreement covers the financial year 2023/24 retrospectively to ensure legal sign-off. The BCF plan supports critical Adult Social Care services, including reablement, hospital social work teams, and voluntary sector services, aiming to help people remain independent and reduce reliance on formal adult social care.

Retrofit Task Group (Sustainable Communities)

Cabinet considered the report and recommendations arising from the scrutiny review of Retrofitting in Merton. The task group focused on reviewing communications regarding retrofit offers and financial support available to residents. The recommendations aim to ensure the council effectively reaches households with information on available services and financial support, while also highlighting potential savings and benefits of retrofitting. The council will provide a response to these recommendations in due course.

The meeting was attended by Councillor Ross Garrod (Chair), Councillor Eleanor Stringer (Deputy Leader and Cabinet Member for Civic Pride and Climate Change), Councillor Stephen Alambritis MBE (Cabinet Member for Finance and Corporate Services), Councillor Usaama Kaweesa (Cabinet Member for Children's Services), Councillor Peter McCabe (Cabinet Member for Health and Social Care), Councillor Billy Christie, Councillor Caroline Cooper-Marbiah (Cabinet Member for Sport and Heritage), Councillor Andrew Judge (Cabinet Member for Housing and Sustainable Development), and Councillor Sally Kenny (Cabinet Member for Jobs, Skills and Education). Also in attendance were various officers including Hannah Doody (Chief Executive) and John Scarborough (Managing Director South London Legal Partnership).