At a meeting of the Barking and Dagenham Council Cabinet, councillors discussed the borough's budget, approved a fire door replacement programme, and agreed to the use of the CarePort project to improve health services. The cabinet also approved a number of contract procurement proposals.

Budget Strategy and Medium-Term Financial Strategy (MTFS) Update

The cabinet approved the budget strategy and approach to setting the 2026/27 budget, after reviewing the updated MTFS projections. The report noted a forecast budget gap of £12.6 million for 2026/27, potentially rising to £16.8 million by 2028/29.

The report noted that the reasons for the funding gaps would not be easy to finance, and that details from the government were uncertain. However, based upon known variables, extra funding for the council should be forthcoming, due to the borough's deprivation, population growth and demand.

Councillor Maureen Worby, Cabinet Member for Adult Social Care, Health and Housing, asked if provision should be made for demand pressures, given that they are a known reality. Councillor Dominic Twomey, Leader of the Council / Labour Group, responded that it was difficult to put an arbitrary sum aside without knowing what demand would look like, but that social care were good at identifying demand, and there would be discussions over the coming months.

The report set out the seven corporate plan priorities that underpin the council's vision, as set out in Section 1.2 of the MTFS and Budget Strategy Report.

Revenue Budget and Capital Programme Update

The cabinet reviewed the projected position of the council’s revenue and capital budgets for 2025/26 as at the end of June 2025. They approved the movement of £6.69 million from reserves.

The general fund budget was reporting a slight overspend of £200,000, an improvement from June of the previous year, where an overspend of £17 million had been forecast. Ongoing pressures remained, particularly in social care. The Housing Revenue Account (HRA) budget was showing an underspend of £4.3 million, but this was likely to change due to new legislation. The Dedicated Schools Grant was facing demand pressures in the Higher Needs Block, with a forecast overspend of £6.6 million. Capital programme expenditure was showing an overspend of £5.9 million due to the acceleration of the Investment and Acquisition Strategy new build.

Key organisational risks were identified as:

• Temporary accommodation pressures
• Potential higher demand for social care
• Continued higher interest rates
• A drop in commercial income from the leisure contract

The report noted that the Investment and Acquisition Strategy was delivering a return to the council of just over £2 million, but this was £2.6 million short of the forecast.

Fire Door Replacement Programme

The cabinet approved the procurement strategy for the replacement of fire doors at flatted accommodation, allocating up to £12 million over four years from the HRA capital funding. This programme aims to address overdue fire safety remedial actions and ensure compliance with the Building Safety Act 2022.

The council will use a hybrid procurement approach, with a one-year contract for urgent works running alongside a three-year framework for remaining actions. This will enable early mobilisation and proactive communication with residents.

Annual Self-Assessment Update for Housing Compliance

The cabinet reviewed the annual self-assessment update for housing compliance, which included consumer standards and tenant satisfaction measures. Overall performance had improved, moving from the bottom quartile to the third quartile, with progress in 11 of the 12 areas measured.

Key themes from resident feedback included a desire for faster communication, improved time for routine repairs, and disappointment with estate conditions and anti-social behaviour (ASB) follow-up.

The council will focus on improving communications, faster response protocols with partners, strengthening partnerships in housing, increasing visibility of investment, and greater co-production with residents.

Councillor Worby said that residents needed to understand what the council was doing and become part of the journey of putting things right, and that sometimes residents contributed to estates not looking as nice as they could.

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 implementation of an integrated health and care service across Barking and Dagenham, Havering, and Thurrock. The CarePort project aims to improve the sustainability of care and health services in the Thames Freeport area.

The project will support 1,800 individuals with complex needs and is expected to deliver a minimum of £300,000 per year in savings across the three boroughs. It will deliver an integrated virtual care model, reduce unplanned A&E attendances by 20%, and delay the need for intensified care.

Councillor Worby described the project as exciting and innovative, adding that it would harness digital technology and boost the long-term sustainability of services. Councillor Saima Ashraf, Deputy Leader and Cabinet Member for Community Leadership & Engagement, endorsed the report, highlighting the potential impact on people's lives and the prevention of various issues.

Leisure Contract Novation to Agency Model Arrangement

The cabinet agreed to vary the leisure contract with SLM Ltd to move to an agency model arrangement, following a recent HMRC ruling that designates leisure provision by local authorities as non-business. This change will allow the council to recover input VAT and generate additional income.

The new arrangement is expected to bring in an extra £3.759 million over the duration of the contract, with a two-thirds to one-third split in favour of the council.

Review of Housing Revenue Account

The cabinet noted the reasons for the HRA underspend in 2024/25 and approved budget adjustments and realignments for 2025/26. The review highlighted the opportunity to strengthen governance and financial management around the HRA.

The underspend of £10.6 million was attributed to several factors, including underspends in recharges, additional income from interest, underspends on bad debt provision, and over-recovery of rental income due to a 53-week year.

The three main priorities for budget adjustments in 2025/26 are a greater provision for disrepair, utility costs, and major repair provision.

Contract for Provision of Liquid Fuel and Ancillary Products

The cabinet approved procurement arrangements for the continued provision of fuel supplies for the council’s transport fleet. This included waiving tendering requirements to enable continued purchasing from the incumbent contractors, Watson Fuels and Nuera, while a longer-term contract is procured.

A new contract will be procured through the CCS Framework Agreement RM6305 National Fuels 3, commencing 1 December 2025, for a period of up to three years with an option to extend for a further year.

Contract for Out of Hours Telephony Service

The cabinet agreed to proceed with the provision of an out-of-hours telephony service via a partnership framework led by the London Borough of Ealing. The new five-year contract with Capita, valued at just over £1.4 million, will provide 24/7 emergency telephony access for services such as housing repairs, social care, and noise nuisance.

Councillor Twomey highlighted the benefits of being part of a framework, including economies of scale and efficient call handling. He also criticised comments made by a Reform candidate who described net zero and sustainability commitments as lunacy, defending the council's commitment to delivering efficient and effective services.