The Merton Council Cabinet met on Monday 14 October 2024 to discuss and approve several key financial and development reports. Decisions made included the approval of the Financial Monitoring Report for Period 5, the endorsement of recommendations for the future use of the former Stanford Primary School site, and the approval of the Affordable Housing Programme for the first 93 units across four sites. The Cabinet also considered updates on the Budget for 2025/26 and the Medium Term Financial Strategy (MTFS) for 2025-29.

Financial Monitoring Report Period 5

The Cabinet noted the financial reporting data for period 5 (August), which indicated a forecast net adverse variance of £14.805m when corporate and funding items were included. They also noted the contents of Section 7 of the report and appendices 5a to 5d, approving the proposed adjustments to the programme detailed in Appendix 5b. These adjustments involved significant financial re-profiling across several directorates, including Finance and Digital, Children, Lifelong Learning & Families, Environment, Civic Pride & Climate, and Housing & Sustainable Development. Notably, the Affordable Housing Fund saw a substantial adjustment of £13.935m in the 2025-26 budget.

Former Stanford Primary School site, Chilmark Road SW16

The Cabinet agreed that the former Stanford Primary School site is surplus to education and other council service requirements. Officers from the Housing and Sustainable Development department are to bring forward options for the best use of the site, with a note that permissions will be required for the disposal of school sites. Further financial appraisal and legal due diligence are needed to determine the financial advantages of demolishing the building at the earliest opportunity. The closure of Stanford Primary School on 31 August 2024 marked the end of its operational use, with temporary arrangements in place for SEND provision until 4 November 2024. The site's future use is likely to be for housing, subject to Secretary of State approval.

Affordable Housing Programme First 93 Units across 4 Sites

Cabinet approved recommendations concerning the delivery of 93 new affordable social rent homes across four sites as part of the Council's sustainable homes programme. They noted the progress on the programme and recommended that Full Council approves an increase to the capital programme and its funding, totalling £27.87m. This adjustment will also be included in the financial monitoring report. Procurement processes for construction packages are underway, with tenders expected to be issued and returned from early 2025. Authority was delegated to the Executive Director for Housing and Sustainable Development, in consultation with relevant Cabinet Members and the Executive Director of Finance and Digital, for the final approval of contracts following the tendering process. Officer resource implications were also noted. The programme aligns with the Council's strategic priority of Building a Sustainable Future and the objective to Build 400 homes on council owned land and ensure the increased supply of affordable homes in the borough. The homes will be built to Passive House principles, supporting the Council's Zero Carbon by 2030 Policy.

Budget 2025/26 and MTFS 2025-29

Cabinet considered and agreed new savings proposals for 2025/26 to 2028/29, referring them to the Overview and Scrutiny panels and Commission in November 2024 for consideration and comment. They also considered the emerging draft working Equalities Impact Assessments for each saving proposal. The report provided an update on the Medium Term Financial Strategy (MTFS) and the forecast financial position of the Council for the period 2025-2029, highlighting the importance of financial health for delivering strategic priorities. Key financial changes impacting the budget gap were detailed, including the Dedicated Schools Grant (DSG) Safety Valve and Deficit Calculation, and an update on Concessionary Fares. The report also discussed Business Rates and the decision not to reconvene a pan-London business rates pool for 2025-26. Initial savings proposals across various directorates were outlined, totalling £5.967m over the MTFS period. The revised MTFS gap, after accounting for savings, was projected to be £4.838m in 2025/26, decreasing to £10.858m by 2028/29. A strategic approach to budget setting was adopted, involving a review of all council activities and a focus on balancing the budget.

The meeting also included the exclusion of the public during the consideration of exempt appendices related to Item 4.