The Cabinet of Westminster Council met on Monday 19 February 2024 to discuss and approve key financial plans and strategies for the upcoming years. Significant decisions included the approval of the Council's medium-term financial plan and the budget for the 2024/25 financial year, alongside the Capital Strategy, Integrated Investment Framework, Treasury Management Strategy, and the Housing Revenue Account Business Plan. A rent increase of 7.7% for social housing tenants from April 2024 was also approved.

Business and Financial Planning 2024/25 to 2026/27

The Cabinet approved recommendations for Full Council regarding the Council's medium-term plan and the budget for the 2024/25 financial year. This includes a 2.99% increase in the general element of council tax and a 2% increase for the Adult Social Care precept, resulting in an annual increase of £23.85 for a Band D property. The report highlighted significant financial pressures, particularly concerning temporary accommodation, and outlined proposed savings and investments aligned with the Fairer Westminster strategy. The Council's financial resilience was deemed adequate, with reserves considered sufficient for the 2024/25 budget and the medium-term.

Capital Strategy 2024/25 to 2028/29

The Cabinet approved recommendations for Full Council concerning the Capital Strategy and capital expenditure for the General Fund. The proposed capital programme up to 2037/38 amounts to a gross budget of £2.604bn, with a net budget of £1.413bn to be funded by borrowing. This strategy supports the Fairer Westminster vision, with significant investment planned in housing developments, infrastructure, and operational assets, including decarbonisation efforts and school expansions. Risks related to interest rates, inflation, legislative changes, market health, and project delivery were identified and mitigation strategies outlined.

Integrated Investment Framework 2024/25

The Cabinet approved recommendations for Full Council regarding the Integrated Investment Framework. The framework aims to diversify risk and future-proof the Council against economic downturns, with a target return on investments to at least meet forecasts for inflation over the medium term. The benefits of investing in the Pension Fund will be used as a benchmark for other investments. The overarching objective is to achieve returns that match CPI inflation, reduce costs and liabilities, and maintain adequate cash balances without exposing capital value to unnecessary risk. Assets will only be acquired for strategic purposes, with a focus on regeneration or development within the borough.

Treasury Management Strategy Statement for 2024/25 to 2028/29

The Cabinet approved recommendations for Full Council concerning the Treasury Management Strategy Statement, borrowing strategy, Prudential Indicators, Annual Investment Strategy, Minimum Revenue Provision Policy, and the delegation of authority for obtaining a credit rating and appointing a Treasury consultant. The strategy aims to ensure capital investment plans are prudent, affordable, and sustainable, with borrowing and investment managed effectively. The Council currently maintains an under-borrowed position, financing capital schemes through its own cash reserves. A proposal to obtain a public credit rating was also approved to mitigate risks associated with potential audit delays.

Housing Revenue Account 30-Year Business Plan and Housing Investment Plan 2024/25

The Cabinet approved recommendations for Full Council regarding the HRA Revenue Budget and Capital Programme for 2024/25. This includes a rent increase of 7.7% from April 2024, an increase in non-dwelling charges of 6.7%, and the extension of the HRA Rent Support Fund by £1.050m. The 5-year Capital Programme totals £920.52m, with a 30-year programme of £2.493bn, aiming to deliver new social homes and improve existing stock, including significant investment in retrofitting homes and replacing the Pimlico District Heating Undertaking. The plan incorporates resilience measures to manage financial risks.

WCC Pay Policy 2024-25

The Cabinet approved the Pay Policy Statement for 2024/25 for recommendation to Full Council. The policy largely remains unchanged from the previous year and complies with legal requirements regarding the remuneration of chief officers and lowest-paid employees. It outlines the Council's approach to pay, benefits, and termination payments, emphasizing fairness, transparency, and the closure of pay gaps. The policy confirms that the Council's minimum pay rate exceeds the London Living Wage.

The meeting concluded with the Chair noting the recent election of Councillor Butler-Thalassis as Deputy Leader, welcoming Councillor Jude to his first Cabinet meeting, and thanking Councillor Tim Roca for his service. The meeting ended at 7:00 pm.