This meeting will focus on how the Council plans to manage its budgets and finances over the medium term. It will also consider whether to in-source the repairs and servicing of its gas boilers and propose changes to the Council’s support for people with learning disabilities. Finally, the Council will review its complaints handling performance for 2023/24.

In-sourcing of Domestic Gas Servicing, Repair and Installation

The Cabinet is being asked to consider whether the Council should in-source the service, repair and installation of domestic gas boilers in the Council’s social housing stock. The Council’s current outsourced contract with Mears Group PLC is due to end in March 2026. The report pack suggests that an in-sourced service, with staff directly employed by the Council, will be both cheaper and better in the long run. It also proposes a dedicated boiler installation ‘catch up’ project to replace all boilers over 15 years old, as these are generally considered less efficient and can lead to additional costs to the Council from repeated repairs. The report pack estimates that over a 15-year period, an in-house service, including the catch-up project, will cost £83.2m. In comparison, the estimated cost of using external contractors for the same work is put at £91.4m. The in-house service is expected to recruit locally and will work with the Euston Skills Centre to provide apprenticeships and re-training opportunities.

2025/26 Revenue Estimates and Council Tax Setting

The report pack outlines the Council’s financial position and sets out its budget and spending plans for 2025/26. It describes how the Council will balance its budget and includes a proposal to increase council tax by 4.99% from April 2025. This represents the maximum permitted council tax increase without holding a local referendum. The proposed increase comprises 2.99% on core council tax and a 2% dedicated adult social care precept.

The proposed increase in council tax of 4.99% does not exceed the relevant thresholds set out by the government and is therefore, in terms of the legislation, not deemed as being excessive. The Council should, however, formally declare this at the time of making the decision.

2025/26 Revenue Estimates and Council Tax Setting

The proposed budget includes a £2m Cost of Living Crisis Fund, which has been in place since 2023/24. The fund sits alongside the government funded Household Support Fund and helps to support the Council’s existing Council Tax Support Scheme. In previous years, the fund has been used to:

• Provide one-off payments of £300 to low-income pensioners.
• Provide supermarket vouchers to families on low incomes during school holidays.
• Provide one-off payments of £300 to individuals and families facing financial hardship.
• Fund activities and support for residents to maximise their income, for example by claiming Pension Credit.

The report pack explains how the Council is taking steps to deal with significant financial pressures in children’s social care and homelessness services. It also describes how the Council is working to maintain its current financial resilience and stability.

The strength of our financial planning puts us in a relatively better position than many others to engage with the challenges caused by a broken, under-resourced funding system and growing demand. Nonetheless, difficult decisions are unavoidable and need to be considered by the Council as part of its budget and council tax setting processes.

2025/26 Revenue Estimates and Council Tax Setting

Learning Disabilities Community Support Commissioning Strategy

The report pack proposes a new procurement strategy for the Council’s Learning Disabilities Community Support service, which helps people with learning disabilities to live independently and thrive in their communities. The service has been delivered by Centre 404 since February 2024, following the closure of The Camden Society (London). Centre 404’s contract ends in September 2025 and the report pack recommends that the service is delivered via a two-lot locality model, with separate providers for North and South Camden. Officers are proposing that the new contract start in October 2025 and that it run for an initial term of four-and-a-half years, with an optional three-year extension. The new contract will also seek to expand services to residents aged 14 to 25, who previously have not been eligible for the scheme. The report pack estimates the total value of the new contract will be £16.3m.

Award of Grant Funding to the Community Smoking Cessation Service

The report pack proposes that a grant be awarded to the Council’s community stop smoking service, Breathe, which is run by Central and North West London NHS Foundation Trust (CNWL). This grant will support the Council in delivering additional stop smoking services in the borough, with a target of supporting at least 238 people to set a quit date in 2025/26. The grant is for a one-year period from April 2025 and will total £234,819. Should funding from the Office for Health Improvement and Disparities (OHID) continue, the report pack recommends that the Council renew the grant with CNWL each year until 2029.

London Borough of Camden’s Annual Complaints Report 2023/2024

The report pack outlines how the Council has handled complaints from residents and provides a summary of how complaints have been resolved at different stages. The report notes that there was a significant 39% increase in the number of complaints received by the Council in 2023/24, with a 33% increase in Stage 1 complaints and a 76% increase in Stage 2 complaints.

This significant increase in complaints corresponds with a rise in complaints reported by most local authorities, particularly those in London.

London Borough of Camden's Annual Complaints Report 2023/2024

The report suggests that the increase in complaints reflects wider challenges within the Housing sector, as well as internal issues within the Council. It highlights several service areas where there has been a significant increase in complaints, such as:

• Property Management, which covers areas such as repairs and maintenance.
• Housing Support Services, which covers homelessness, temporary accommodation and applications for housing.
• Environment Services, which covers recycling and waste collections.

The report demonstrates that the Council is taking steps to address the issues raised by complaints, such as increasing capacity in the Corporate Complaints Team and improving IT systems. It also highlights specific areas where improvement is needed, such as ensuring that the Council’s policies and procedures comply with the Housing Ombudsman’s Code of Practice, improving information sharing and communication with residents, and improving the Council’s systems and practices in relation to identifying and responding to the needs of vulnerable residents.

Treasury Management Strategy (CS/2025/03)

The report pack sets out how the Council plans to manage its finances for the coming year and recommends a ‘prudent’ approach to managing investments and borrowing. It outlines the Council’s view of the economic environment, including the likely direction of interest rates. The report pack notes that the Council is ‘under-borrowed’ by £365m, and it does not propose taking on any new borrowing at this time.

Despite the increasing underlying need to borrow, it is recommended that the existing internal borrowing approach is continued for 2025/26. The Council’s financial position as well as the outlook for interest rates (see main report, paragraph 2.8 – 2.14) which shows both PWLB rates and rates on the investment portfolio decreasing. Lower PWLB rates mean that the Council can “lock in” cheaper borrowing as rates fall. Similarly, predicted lower investment portfolio rates mean the cost of the HRA internally borrowing from the GF is expected to reduce over time.

Treasury Management Strategy (CS/2025/03) - Appendix 1

It explains that the Council will continue to use its existing investments to fund its planned capital spending programme. This approach, known as ‘internal borrowing’, has saved the Council approximately £1.8m in interest costs over the past year. The report pack notes that there is a risk associated with this strategy, as the Council will need to start borrowing in the future to pay for its spending plans. If interest rates are higher at this point, then the cost of the capital programme will also be higher. However, it is also noted that the current medium-term outlook for interest rates supports the recommended strategy.