The Barking and Dagenham Council Cabinet met to discuss the provisional revenue and capital outturn for the 2024/25 financial year, the treasury management annual report, an agreement for the Adults Emergency Duty Team Service, the use of existing temporary accommodation stock, the social value in procurement impact report, and the debt management performance. The Cabinet agreed to a procurement waiver to allow the council to continue using temporary housing stock provided by Housing Britain, and approved entering into a Section 75 Agreement¹ with the North East London Foundation NHS Trust (NELFT) for the provision of an Adults Emergency Duty Team service. The Cabinet also agreed to transfer the general fund underspend into the general fund reserve.

Provisional Revenue and Capital Outturn for 2024/25

The Cabinet reviewed the provisional revenue and capital outturn for the 2024/25 financial year, noting an overall underspend of just over £1 million. Councillor Dominic Twomey, Leader of the Council, described it as a fantastic turnaround achieved through hard work, diligence, discipline, and most importantly, teamwork.

Key figures from the report included:

• A general fund underspend of just over £1 million. The Cabinet agreed to transfer this underspend into the general fund reserve.
• A housing revenue account underspend of £10.6 million, which has been allocated for work on housing stock following the introduction of AWAB's law.
• A dedicated schools grant overspend of nearly £5.2 million, attributed to high-needs pressures.
• A capital underspend of £31.1 million.

Councillors raised concerns about the capital underspend, particularly in areas such as aids and adaptations, disabled facilities grants, and the Lays Pavilion. Councillor Maureen Worby, Cabinet Member for Adult Social Care, Health and Housing, noted the Lays Pavilion underspend, saying it has been going on now for five years and we still haven't managed to do it. And it's a disgrace. Councillor Dorothy Akwaboah, Cabinet Assistant, echoed these concerns, stating that underspends are equally concerning as overspends.

Councillor Twomey acknowledged the concerns but emphasised the pressures faced by council officers in delivering savings and efficiencies. He also noted that the capital underspend had been reduced from 40-50% in previous years to 12%.

The report also highlighted financial pressures on the council's investment and acquisition strategy due to difficult economic times and higher borrowing costs. A deficit was reported in commercial investments of £2.5 million and a residential loss from the reside portfolio.

Treasury Management Annual Report 2024/25

The Cabinet considered the Treasury Management Annual Report 2024/25, which summarised treasury management activity and the actual prudential and treasury indicators for the financial year.

Key points from the report:

• The council borrowed an additional £211 million relating to the Investment Acquisition Strategy (IAS).
• Borrowing was undertaken short term due to high long-term Public Works Loan Board² (PWLB) rates.
• The overall impact on the revenue budget of the investments and borrowing was an overspend of £5.201 million.

Councillor Twomey explained that the £211 million increase in borrowing was attributable to the Investment and Acquisition Strategy, which aims to deliver 3,700 housing units across the borough. He noted that while further borrowing would reduce to £120 million in 2025/26 and £15 million in 2026/27, persistently high long-term interest rates meant the council was taking short-term finance, mainly via the PWLB.

The report also noted that the council's commercial property portfolio delivers an income of £5.5 million, and work is underway to rationalise this portfolio to increase income and bring in the best possible return on investment.

Adults Emergency Duty Team Service Section 75 Agreement

The Cabinet approved entering into a Section 75 Agreement with Havering, Redbridge, Waltham Forest Councils, and the North East London Foundation NHS Trust (NELFT) for the provision of an Adults Emergency Duty Team service for a five-year term commencing 1 April 2025. Councillor Worby explained that the Adult Emergency Duty Service is the principal out-of-hours service for weekends, bank holidays, and outside normal office hours, supporting vulnerable adults in need of urgent intervention. The service has been delivered by NELFT for the past 15 years and was recently re-procured with Havering leading on the procurement. The new agreement has a maximum value of circa £4.46m, with Barking & Dagenham paying $1.1 million a year for the next five years.

Use of Housing Britain's Existing Temporary Accommodation Stock

The Cabinet agreed to a procurement waiver to allow the council to continue utilising temporary housing stock provided by Housing Britain for homeless households until March 2027. Councillor Worby explained that Housing Britain were an approved provider but chose not to apply to be on the current framework due to pressures on landlords. However, the council has a statutory duty to provide accommodation for the 40 families currently in Housing Britain's stock. The current rate paid to Housing Britain is 5% below what the council is paying other providers, and it would cost $2.3 million to rehouse these families in emergency placements. Continuing with Housing Britain until 2027 is estimated to cost $1.3 million.

Social Value and Procurement Impact Report 2024-25

The Cabinet considered the Social Value and Procurement Impact Report 2024-25, which noted the progress made in social value contributions since 2020. Councillor Twomey highlighted that the area can be complex, with contracts meeting the threshold being large, with a minimum of £100,000. He noted that reporting results in two ways: commitment and outcome, with appendices A and B providing detail around both.

Councillor Twomey noted that procurements in 2024-25 reduced to around 30, a 30% reduction from previous years, due to the realignment of council spending. He also highlighted the team's work with organisations to support the most vulnerable, including those with learning disabilities and autism.

Councillor Cameron Geddes, Cabinet Member for Regeneration & Economic Development, suggested giving the report more publicity, highlighting the inspirational quotations in the slide. Councillor Sade Bright, Cabinet Member for Employment, Skills & Aspiration, echoed these sentiments, noting the tangible difference social value in procurement has made in her portfolio area, with more local job opportunities being created.

Debt Management Performance 2024/25

The Cabinet reviewed the Debt Management Performance report for 2024/25, which showed an increase in collection rates across the piece, other than council tax. Councillor Twomey noted that the ongoing cost-of-living pressures and the increased amount of council tax year on year are making it very difficult for a number of households. He emphasised the importance of collecting outstanding debt to support residents in the borough, particularly vulnerable residents.

Councillor Twomey explained that the council will continue to work with those residents and businesses that cannot pay, setting up payment schedules and supporting them through difficult times, while vigorously pursuing those that will not pay. He noted that the overall aim is to support the entire council to become a more efficient organisation.

Councillor Akwaboah asked how the council differentiates between those who cannot pay and those who can pay but won't pay. Councillor Twomey explained that it is down to the work of the debt collection teams, who use a number of tools at their disposal, including communication with residents and credit agencies.