This meeting is about the council's budget for 2025-26, with the Cabinet recommending that the council approve a budget with a 4.99% rise in council tax. There is also a reference report from a meeting of the Cabinet held on 11 February 2025, where Cabinet agreed to recommend a revised Council Tax Support Scheme to the Borough Council¹ for adoption.

Council Tax Support Scheme

A report was prepared for the meeting of the Cabinet on 11 February 2025 setting out proposed changes to the Council Tax Support Scheme. A consultation exercise was carried out between October and December 2024. A report on this consultation is attached to the report as Appendix A. Of the people who responded to the consultation, 56% did not support the changes, whereas 25% thought the proposal to ask everybody to contribute was fair. The Cabinet recommends that the Borough Council approve the revised scheme for 25/26. This scheme is attached to the report as Appendix C.

The key components of the revised scheme are:

• All working age residents will contribute towards their council tax based on revised income bands.
• Households will receive a percentage reduction on their council tax bill (dependent on earnings and household make-up) as opposed to making a set contribution solely based on earnings.
• The council will pay 90% towards carers' (those in receipt of Carers' Allowance) council tax bills.
• Deductions from the support available (and therefore an increase in the contribution owed by the recipient) for non-dependent members of the household will be set at a flat rate of £5 per week for those not working and £10 a week for those in work.
• The earnings thresholds will be increased automatically in line with inflation.

To agree to recommend to Borough Council that it adopt a transitional hardship fund, substantially in the form attached as appendix D, that £1.5M be set aside for that purpose and that it delegates to the Executive Director of Finance and Resources the authority to finalise the detail and implementation of that policy.

The report recommends that the Borough Council create a hardship fund. This fund would be for people whose council tax liability increases or who start paying council tax for the first time as a result of changes to the Council Tax Support Scheme.

The hardship fund would last for an initial period of 2 years, during which time it would be reviewed annually. The Cabinet is recommending that the fund should be flexible enough to allow people to have their liability reduced and to provide financial support in other ways, like providing supermarket vouchers or help with paying utility bills.

External Audit Completion Report 2023/24

The report pack contains a report on the external audit of the council's accounts. The auditors, Forvis Mazars LLP, have issued an unqualified opinion on the council's pension fund accounts. However, because of the time constraints imposed by government regulation they have had to issue a 'disclaimed opinion' on the council's main financial accounts. This means that they are unable to complete the audit of the financial statement for the year ended 31 March 2024 as originally planned, in advance of the backstop date of 28 February 2025.

Borough Council is asked to:

1. note the unqualified opinion on the Council’s Pension Fund accounts and the disclaimed audit opinion on the Council’s main financial accounts;
2. note the audit findings as outlined in the auditor’s draft reports attached at Appendices A and B;
3. approve the audited Statement of Accounts 2023/24 at Appendix C.

Forvis Mazars LLP also found no issues to report about the council's value for money arrangements.

Petitions

The report pack contains a report on the petitions that have been received by the Mayor and the different bodies that will be considering them. In particular a petition of 13 signatures has been received requesting enhanced traffic enforcement and safety measures on Eastbourne-Challis Road in Brentford West. Another petition of 58 signatures has been received requesting that the council addresses an issue about anti-social behaviour involving a named individual and dog in Feltham North. There are three further petitions requesting action on parking issues in the borough:

• 18 signatures request a Controlled Parking Zone in Francis Road in Hounslow West.
• 48 signatures request that parking issues be resolved in Fern Grove in Feltham North.
• 115 signatures request that a number of road improvements be made in Church Road, TW5 9RY in Cranford.

Budget 2025-26

The report pack contains the following budget related documents:

• A report setting out the council's proposed revenue budget.
• Appendix A - Budget Summary.
• Appendix B1 - General Fund Savings Proposals.
• Appendix B2 - HRA Savings Proposals.
• Appendix C - Fees and charges schedule.
• Appendix D - Capital Programme.
• Appendix E - Capital Strategy.
• Appendix F - Treasury Management Strategy 2025/26, Annual Investment Strategy, Statement on Minimum Revenue Provision and Prudential and Treasury Indicators.
• Appendix G - Balances and Reserves.

It is estimated that if the changes proposed in this report are not implemented, the costs of the Scheme will rise to approximately £27.5M in 25/26. This represents 11% of the Council’s general fund directorate budgets. Should the proposals in this report be adopted, they would generate a saving to the general fund of approximately £4m, thus making a significant contribution to the outstanding budget gap.

In order to balance the 2025-26 budget the Cabinet is recommending a number of actions, including the following:

• A 4.99% rise in council tax. 2% of this rise will be ringfenced for adult social care, and 2.99% will be for other expenditure.
• £12.2 million of new savings across the council's services. A number of service reductions are included in these savings.
• A capitalisation strategy that will allow the council to apply capital receipts to fund the cost of service reform.
• Drawing on £28.1 million of reserves.

The capital programme for 2025/26 to 2028/29 as detailed in paragraphs 9.1 to 9.13 of the attached report and in Appendix D thereof.

The report recommends a capital programme for 2025-26 of £173.9 million. The council's capital expenditure requirements include funding for:

• Hounslow House
• Leisure centres
• Libraries
• Adult social care facilities
• Parks, playgrounds and open spaces
• Highways, footways, bridges, town centre pedestrianised areas, street lighting and signage
• Social housing
• ICT

The Treasury Management Strategy 2025/26, Annual Investment Strategy, Statement on Minimum Revenue Provision and Prudential and Treasury Indicators and Approved Countries for Investment as detailed in paragraphs 12.1 to 12.7 of the attached report and in Appendix F thereof.

The report sets out the council's treasury management strategy, and its prudential and treasury indicators, which are used to ensure that borrowing remains affordable and to control risk. The indicators include a range of limits to manage the council's exposure to volatility in interest rates, as well as to ensure that sufficient resources are available for the timely repayment of debt.

In anticipation of the 2026/27 local government funding reforms, the Council is using local data and evidence to advocate for a fairer distribution of resources. Planned reforms include:

• a review of relative needs and resources,
• a reset of the business rates retention system,
• the introduction of a three-year settlement.

The council is planning to make representations to government in order to highlight its specific financial challenges, including areas of deprivation, demographic trends, and increasing service demands as part of an upcoming review of local government funding.

Appointment of Interim Chief Executive

To appoint Mandy Skinner as Interim Chief Executive (and Returning Officer and Electoral Registration Officer) until a permanent Chief Executive is in post.

The report recommends that the council appoints Ms Mandy Skinner as interim chief executive. She will also act as returning officer for local elections, and as electoral registration officer. Her appointment will continue until the recruitment process for a permanent chief executive concludes.