The Budget Scrutiny Committee was scheduled to meet to review the 2024/25 capital and revenue outturn, receive an update on local government funding reforms, and discuss the scrutiny report. The committee, chaired by Councillor Miriam Mirwitch, was also expected to review action trackers and recommendations from previous meetings, and discuss the forward plan for the remainder of the municipal year.

Capital and Revenue Outturn 2024-25

The committee was scheduled to review the council's capital and revenue expenditure for the 2024-25 financial year. The report pack included details of revenue expenditure, capital expenditure, the Housing Revenue Account (HRA), and the Dedicated Schools Grant (DSG) as of 31 March 2025.

The report pack noted that the council had experienced high demand for adult and children's social care, leading to a combined overspend of £15.182 million. Additionally, there had been a sharp increase in the cost of temporary accommodation, with expenses exceeding the available budget by £9.042 million.

The report pack stated that the final outturn position for service directorates showed an unfunded budget pressure of £24.458 million, an increase of £3.686 million compared to the Month 9 service position of £20.772 million, and a £6.095 million increase compared to the final outturn position for 2023/24 of £18.363 million.

Within corporate expenditure, there was an underspend of £14.560 million, mainly due to an underspend on the contingency budget, a prepayment discount on pension contributions, and a reduction in the bad debt provision for housing benefit overpayments.

The Housing Revenue Account (HRA) achieved a surplus of £1.388 million, which was transferred to the general HRA reserve. The Dedicated Schools Grant (DSG) had an in-year deficit of £4.454 million, primarily in the high needs block.

The approved capital budget for 2024/25 was £151.018 million, with actual spending at £131.798 million. The underspend of £19.220 million was scheduled to be carried forward into 2025/26.

The report pack also included details of reserves and provisions, council tax and business rates collection, and the statement of accounts.

The report pack stated that the general fund working balance at year end was £14.906 million, which meets the target of having a balance between £10 million and £15 million. The HRA working balance has increased to £6.905 million as at 31st March 2025.

The report pack noted that the audited 20/21 Statement of Accounts were signed on 13th August 2024, with an opinion from Ernst & Young (EY), the external auditor, that the accounts give a true and fair view of the financial position of London Borough of Waltham Forest as at 31 March 2021 .

Update on Local Government Funding Reforms

The committee was scheduled to receive an update on the government's planned reforms to local government funding. The report pack stated that the Spending Review 2025 set out the government's spending priorities until the next review, likely in 2027, with funding for local government expected to increase by an average of 1.2% in real terms.

The funding reforms aim to review how funding is allocated to local authorities, with changes expected to be implemented for the 2026/27 financial year and a transitional period until 2028/29. The reforms build on consultations from 2018 and were deferred due to Brexit and the pandemic.

The report pack outlined key components of the funding review, including:

• Relative Needs: Ensuring funding is targeted where it is most needed, with individual formulas for areas like Adults Social Care, Children's and Young People, Highway Maintenance, Home to School transport, and Temporary Accommodation.
• Relative Resources: Equalising local authority funding using a notional council tax level.
• Notional Settlement Funding Assessment (SFA): Including the impact of a full Business Rates Reset and grant funding aligned to the overall funding envelope.

The report pack also raised concerns from London Councils, including that deprivation measures may not sufficiently reflect housing costs and that the proposed children's funding formula needs improvement.

The Scrutiny Report

The committee was scheduled to review the Scrutiny Report, which included the forward plan for the ongoing municipal year, action trackers from previous meetings, and a recommendations tracker. The forward plan outlined the committee's work programme, including statutory reports, major decisions, themed reviews, and policy areas of interest.

The report pack included a draft forward plan for the 25/26 cycle, a Budget Scrutiny Recommendation Tracker, and a Budget Scrutiny Action Tracker.

The report pack stated that key decisions falling under the remit of this scrutiny committee in the upcoming Cabinet Forward Plan are:

• Revenue Outturn Report, decision due date 15 July, lead officer Linda Murray, scheduled to be at July scrutiny.