Agenda item

Councillor Barry Rawlings Leader of the Council and Cabinet Member for Resources & Effective Council introduced the report.

Cabinet Members spoke about the budget proposals relating to their portfolio areas. Members agreed an additional recommendation (nr 23) on pay inflation virement as set out in the addendum to the report.

Following discussion, the Chair moved to vote on the recommendations, including the additional recommendation number 23 as set out in the report and addendum.

DECISION:

RESOLVED that Cabinet:

In respect of business planning for 2024-30:

1. Noted the issues facing local government finance nationally and across London as set out in 2.1- 2.15.
2. Noted the key headlines from the Autumn Statement on 22 November 2023 as set out in 2.16-2.21.
3. Noted the updated MTFS attached as Appendix A and the underlying assumptions as set out in Section 3.
4. Noted the updates to the 2024/25 MTFS and estimate of 2024-30 budget gap. This will be updated to take account of information from the 2023 Provisional Local Government Finance Settlement due on 19 December 2023.
5. Noted that the MTFS assumed that the Eight Authority Business Rates Pool will continue for 2024/25 and that £2m benefit has been assumed in the MTFS (paragraph 3.3);
6. Delegated authority to the Executive Director of Resources (S151 Officer) to take all necessary actions to participate in and execute the Eight Authority Business Rates Pool agreement.
7. Noted the actions being taken to address the 23/24 forecast overspend of £26m as outlined in paragraph 3.9-3.10.
8. Noted the plans to address the remaining budget gap for 2024/25 as detailed in 3.18-3.20.
9. Agreed public consultation on the savings proposals as set out in Appendix B. These will come back to Cabinet on 6th February 2024 for referral to Full Council on 27th February 2024 for final approval of the 2024/25 budget including Council Tax.
10. Approved delegated authority to the Executive Director of Resources (S151 Officer) to amend the MTFS in line with the 2024/25 Provisional Local Government Finance Settlement due on 19 December 2023, to enable the 2024/25 Budget Consultation process to commence as discussed in paragraph 3.21.
11. Noted the council’s reserves position as detailed in paragraphs 3.22-3.24.
12. Considered the recommendations that Overview & Scrutiny in November 2023 made on the proposed MTFS as detailed in the additional paper being presented to this Cabinet.
13. Noted the issues facing the Housing Revenue Account and the mitigating actions that the council and Barnet Homes are taking to ensure the viability of the HRA over through the 30-year Business Plan period – as outlined in Section 4.
14. Noted the actions the council are taking towards meeting its sustainability goals as set out in Section 5 and Appendix D; and
15. Noted the approach to Digital Transformation that the council has adopted and the update provided in Section 6. Regarding consultation on budget and council tax proposals:
    
    Regarding consultation on budget and council tax proposals:
16. Agreed to consult on the use of the council’s flexibility to raise the level of General Council Tax by 2.98% in 2024/25 as discussed in paragraph 3.4;
17. Agreed to consult on the use of the council’s flexibility to apply a 2.00% Social Care Precept, to help fund pressures in social care as set out in paragraph 3.4; and
18. Approved that the council’s budget consultation will be launched in the week of 18th December 2023 for a period of 6 weeks after which the budget, with a cumulative equalities impact assessment, will be considered by Cabinet on 6th February 2024, before it is referred to Full Council on 27th February 2024. In respect of routine financial matters for 2023/24:
    
    In respect of routine financial matters for 2023/24:
19. Noted the contingency budget and allocations from it in section 7.1-7.4.
20. Noted the revenue budget virements for 2023/24 as detailed in sections 7.5-7.6.
21. Approved the debt writes-offs for Business Rates (NNDR), Council Tax, Housing Benefit Overpayments, Income (Sundry Debt) and Tenant Arrears (HRA and General Fund) as detailed in sections 7.7-7.34; and
22. Approved the changes to the existing Capital Programme in relation to additions as set out in section 8 in accordance with the virement rules.
    
    Additional Recommendation:
23. That Cabinet approved the virements set out in the addendum noting that the pay inflation budgets being allocated to services are contained within the contingency budget set out in 7.4 of the Business Planning 2024- 2030 and In-Year Budget Management 2023/24 report being presented to this Cabinet.

The report set out the options considered, if any, and the reasons for the recommendations and the decision.