This meeting is scheduled to include a petition debate on public toilet provision and questions from both the Youth Council and the public. It also features a resolution on Councillor Rakhia Ismail's attendance and the main item of discussion: the budget proposals for 2025/26 and the council's Medium Term Financial Strategy (MTFS).

Resolution to extend six month rule

Councillor Rakhia Ismail's attendance at council meetings will be discussed, as she has been unable to attend due to ill health. The report requests that the Council approve her absences for a period exceeding 6 months. The report notes that The extension would not prevent Councillor Khondoker from returning to meetings at any time, but would give flexibility and prevent further recourse to the Council before the end of the calendar year.¹

Petition Debate: Public Toilet Provision

A petition presented at the previous meeting by Cornelius McAfee of the Loos for Islington campaign group calling for the council to Publish and deliver a public toilet strategy for Islington will be debated. Councillor Flora Williamson, Executive Member for Health and Social Care, is scheduled to move the motion to debate the petition.

Questions from the Youth Council

The Youth Council has tabled questions for several Executive Members. One question is directed at Councillor Rowena Champion, Executive Member for Environment, Air Quality & Transport, asking what plans the Council has to make Islington a greener, safer, healthier place and specifically involve local residents and young people?. Another question for Councillor Michelline Safi Ngongo, Executive Member for Children, Young People and Families, asks what local initiatives can young people look forward to in 2025 that will improve youth safety.

Questions from Members of the Public

Members of the public have submitted several questions. One question from Rachael Swynnerton is directed at Councillor Champion, asking what measures there are to ensure the safety of children walking and cycling to school. Another question, from Sheridan Kates, is directed at Councillor John Woolf, Executive Member for Homes and Neighbourhoods, enquiring about the eviction of tenants in Carleton Road by Theori Housing.

Budget Proposals 2025/26 and Medium Term Financial Strategy

The meeting is scheduled to discuss the council's budget for 2025/26, including its proposals for expenditure and income generation over the next three years.

The most significant item in the report pack concerns the council's budget proposals and its Medium Term Financial Strategy (MTFS). The report acknowledges the challenging financial context for local authorities, exacerbated by the current cost-of-living crisis, and seeks to set a balanced budget, including proposals for raising income and managing expenditure.

The report pack includes a comprehensive analysis of the council's General Fund position, its Housing Revenue Account (HRA), the capital programme and council tax.

General Fund

The proposed General Fund budget for 2025/26 is £278.686m, with the largest allocations for the Children & Young People (£82.816m) and Health & Social Care (£62.869m) directorates. It proposes new revenue savings totalling £14.181m for 2025/26.

The report warns of significant financial risks over the medium term, notably the exponential increase in temporary accommodation costs. The report states that There has been a rapid escalation in temporary accommodation costs which show no sign of easing. This is attributed to the cost-of-living crisis, rising rents, and evictions. The document highlights the need to manage demand and explore mitigating actions.

The report also notes the impact of inflation on service costs and the erosion of government funding. The report points out that Inflation can result in increased fees for social care, increased construction costs, a rise in energy bills and create an upward pressure for future pay demands. It also emphasises the shrinking real value of government grants and business rates in the context of persistent inflation.

Housing Revenue Account (HRA)

The proposed Housing Revenue Account (HRA) budget for 2025/26 is balanced, but this is only achieved by limiting the budget for investment in existing council homes. The document explains that It is vital that we make sure we have a sustainable plan to manage and maintain our current homes before considering paying off debt or funding the building of further new homes from HRA resources.

The report outlines the significant pressures on the HRA, including government controls on rent increases, rising interest rates, inflation and demand for repairs, particularly those related to damp and mould. The report states that The irresponsible decision to constrain the vital growth in rents by previous governments has removed £1.7 billion from our 30-year business plan.

The document emphasises the need for government support to address the systemic underfunding of council housing and highlights the council's work with other landlords to articulate this. It goes on to say that We need the Government to recognise that it is just as important to keep current homes at safe and comfortable standards as it is to deliver new homes.

The HRA section also includes details on the council's plans for building new homes. The report states that The council has an ambitious new build programme and has a target of having started on site 750 new social rented homes by December 2027. However, the report notes that the funding environment has become challenging due to increased construction costs and higher interest rates. The council is committed to delivering its target and is exploring alternative funding arrangements to cover any programme deficits.

Capital Programme

The proposed Capital Programme for 2025/26 is £309.628m, with the largest allocation for the HRA (£249.179m). The report acknowledges that the programme may be affected by inflation and rising interest rates.

The proposed programme is funded by grants, developer contributions, capital receipts, revenue contributions and borrowing. The report pack includes a detailed breakdown of the funding sources for each capital project.

Council Tax

The report pack includes a detailed calculation of the proposed council tax for 2025/26. The proposed increase is 4.99% for Band D properties, the maximum allowed without a local referendum. The report acknowledges the impact on residents, particularly those with lower incomes, and outlines the council's support schemes, such as the Council Tax Support Scheme.

Retained Business Rates

The report sets out the council's estimated retained business rates for 2025/26, factoring in government policy changes and anticipated income shortfalls.

Matters to Consider

The report pack includes a comprehensive set of considerations for the council in setting its budget. This includes:

• Comments from the Section 151 Officer, highlighting the robustness of the estimates and adequacy of the proposed financial reserves
• Comments from the Monitoring Officer, outlining the council's statutory duties, including financial management and compliance with the Public Sector Equality Duty
• An Environmental Impact Assessment, considering the environmental implications of the budget proposals and the council's commitment to achieving net zero carbon emissions by 2030
• An Equality Impact Assessment, evaluating the impact of the proposals on different groups with protected characteristics and seeking to mitigate negative impacts

The report concludes by noting the council's commitment to financial sustainability, ensuring that resources are used effectively and efficiently to deliver services for its residents.