The Cabinet of Barking and Dagenham Council met on Tuesday 19 August 2025 to discuss the council's financial performance, budget strategy, and various service contracts. Key decisions included approving the movement of £6.69 million from reserves to address budget pressures, endorsing the budget strategy for the upcoming financial year, and agreeing to new contracts for leisure services, liquid fuel supply, and an out-of-hours telephony service.

Revenue Budget and Capital Programme 2025/26 Update

The Cabinet reviewed the council's revenue budget and capital programme for the 2025/26 financial year, as of the end of June 2025. While the general fund budget was on track for a balanced position with a slight overspend of £200,000, significant pressures were noted in social care. The Housing Revenue Account (HRA) showed an underspend of £4.3 million, and the Dedicated Schools Grant was forecasting an overspend of £6.6 million, particularly in the Higher Needs Block. The capital programme expenditure was showing an overspend of £5.9 million, largely due to the acceleration of the Investment and Acquisition Strategy's new build programme. The Cabinet approved the movement of £6.69 million from reserves to manage these financial positions.

Budget Strategy and Medium-Term Financial Strategy Update 2026/27 - 2028/29

An update on the council's Medium-Term Financial Strategy (MTFS) for 2026/27 to 2028/29 was presented, highlighting an anticipated funding gap of £12.6 million in 2026/27, rising to £16.8 million by 2028/29. This forecast is based on current variables, with uncertainty surrounding future government funding. The report outlined the council's seven corporate plan priorities and the need for robust financial discipline to meet growing demand in areas such as special educational needs and disabilities (SEND) and temporary accommodation. The Cabinet noted the financial context, approved the budget strategy and approach for setting the 2026/27 budget, and acknowledged the projected funding gaps and associated risks.

Use of CarePort Project to Improve Sustainability of Care and Health Services in the Thames Freeport Area

The Cabinet approved a waiver of tendering requirements to directly award a contract to Care City CIC for the CarePort project. This initiative aims to improve the sustainability of care and health services in the Thames Freeport area through an integrated virtual care model. The project, a three-borough initiative involving Barking and Dagenham, Havering, and Thurrock, is expected to support 1,800 individuals with complex needs and deliver significant annual savings. The capital cost is £813,000 over 18 months, with £536,000 funded by the Ministry of Housing, Communities and Local Government (MHCLG).

Leisure Contract Novation to Agency Model Arrangement

A recent HMRC VAT ruling allowing local authorities to treat leisure provision as non-business has prompted a proposal to novate the leisure contract with SLM Ltd (Everyone Active) to an agency model arrangement. This change is expected to generate significant additional income for the council. SLM proposed a two-thirds to one-third split in favour of the council, which is broadly in line with industry practice. The variation to the contract is expected to bring in an additional £3.759 million over the duration of the contract, approximately £260,000 per annum. The Cabinet agreed to proceed with this variation.

Review of Housing Revenue Account

A review of the Housing Revenue Account (HRA) highlighted a material underspend in 2024/25, leading to proposals to strengthen governance and financial management. The review identified opportunities to improve operational oversight, budget control, transparency, and support capital investment priorities. The underspend of £10.6 million was attributed to factors including underspends in recharges, additional interest income, a lower bad debt provision due to successful rent collection, and an over-recovery of rental income from a 53-week year. The Cabinet noted the reasons for the underspend and approved budget realignments, including increased contributions to disrepair provision and revenue contribution to capital.

Fire Door Replacement Programme

The Cabinet approved a capital investment of up to £12 million over four years for a comprehensive fire door replacement programme across the council's social housing stock. This programme will address 2,170 outstanding fire safety remedial actions identified through Fire Risk Assessments, ensuring compliance with the Building Safety Act 2022. A hybrid procurement strategy was approved, involving a one-year contract for urgent works and a three-year framework agreement for remaining actions, aiming to enable early mobilisation and long-term value for money.

Annual Self-Assessment Update for Housing Compliance

An update on the council's performance against the updated Consumer Standards and Tenant Satisfaction Measures (TSMs) under the Social Housing (Regulation) Act 2023 was presented. The council's performance had improved, moving from the bottom quartile to the third quartile nationally, with improvements seen in 11 out of 12 measured areas. Key achievements included meeting the national benchmark for complaints handling. The Cabinet noted the performance results, endorsed the council's approach to monitoring and reporting, and agreed on areas for continued focus.

Contract for Provision of Liquid Fuel and Ancillary Products

The Cabinet approved proposals for the procurement of new contracts for liquid fuel and ancillary products for the council's fleet services. The previous contract expired in March 2022, and since then, direct contracts have been awarded. The new contract will be procured through the CCS Framework Agreement RM6305 National Fuels 3 for a period of up to three years, with an option to extend for one year. Approval was also given to waive tendering requirements to allow continued purchasing from incumbent suppliers, Watson Fuels and New Era Fuels, during the procurement period.

Contract for Out of Hours Telephony Service

The Cabinet agreed to continue participation in a joint out-of-hours telephony service led by the London Borough of Ealing. This collaborative arrangement, which began in 2020, has delivered significant savings and maintained a high resident satisfaction rate. The current contract with Capita is expiring, and a new five-year contract with two optional one-year extensions is proposed, with an estimated total value of £1.4 million. This service provides 24/7 emergency telephony access for essential services.

The meeting was chaired by Councillor Dominic Twomey, Leader of the Council.