DECISION

The Mayor agreed to submit the budget and policy framework aspects of the report for review by the Overview and Scrutiny Committee.

1.      Propose a draft General Fund Revenue Funding Requirement of £446.257m for 2023-24 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

2.      Propose to freeze the Tower Hamlets element of Council Tax and to levy a 2% Adult Social Care precept for 2023-24.

3.      Propose that the Interim Corporate Director Resources uses £22.3m from reserves in 2023-24 to support the budget as set out in section 3.9.8 of the report given the shortfall emerging as part of the 2023-24 budget setting process.  

4.      Propose that the Interim Corporate Director Resources be authorised to make any changes required to the budget following receipt of the final Local Government Finance Settlement (LGFS) in consultation with the Mayor and Cabinet Member for Resources and the Cost of Living.

5.      Authorise the Corporate Director Resources to continue the Council’s participation in the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2023-24, subject to due diligence.

6.      Note the latest draft position of the Council’s reserves, subject to final audit of the statements of accounts.

7.      Propose the HRA housing rent and service charge increases as outlined in section 3.11.  This includes increasing housing rents for existing tenanted properties by 7% for 2023-24 and for new build properties by CPI +1% for 2023-24 (as per paragraph 3.11.18 of the report).

8.      Propose that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2023-24. The only changes included are increases to the factor values in line with the NSFF.

9.      Propose that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set as close to 0.5% as affordable, the maximum allowed after consideration for growth and factor changes in School allocations.

10.   Propose that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula.

11.   Note that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.

12.   Note the Equalities Implications as set out in Section 5 of the report.

Action by:

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Director of Finance, Procurement and Audit (N. Visram)

The item was considered alongside Agenda Item 6.1 (Mayor’s Foreword to the Council’s Budget Report) and the combined minute is presented here.

The Mayor introduced both reports. He stated he was proud of the ambitious budget which he felt would re-direct the Council’s focus, reversing service cuts of the previous administration and reinvesting in public services, including:

·         Green investment initiatives, including electric waste vehicles and charging points, improvements in flat waste recycling and in low carbon fuel supply.

·         Youth service investment.

·         Universal Free school meals for both primary and secondary school.

·         Education maintenance allowance and university bursary scheme to promote access to education.

·         Investments to directly combat crime, including in providing more police officers, enforcement officers and CCTV cameras.

·         Improved Street cleansing.

·         Plans to deliver 1,000 homes for rent per year to reduce overcrowding and the damage it causes to health and wellbeing of residents.

·         Free home care for the vulnerable in the community.

·         Protecting and re-opening Idea Stores.

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living provided detail of the financial context behind the Mayor’s budget, including:

·         How national government decisions made financial planning acutely difficult for local authorities

·         Significant funding challenges including price rises, increasing interest rates and high fuel costs

·         Increasing pressures in adult social care meant the council has little option but to levy the 2% adult social care precept.

·         That despite the challenges above, the core rate of council tax, excluding the adult social care precept would not be increased

·         A portion of the Council’s reserves would be used to fund expenditure priorities, which would mean that residents would not suffer due to the economic crisis which is out of their control.

Kevin Bartle, Financial Consultant (and formerly Interim Corporate Director – Resources) and Nisar Visram, Director of Finance provided additional detail on the budget process and timetable. The Cabinet noted the budget would be considered by the Overview and Scrutiny Committee and any comments of the Scrutiny Committee would then be considered at the next Cabinet meeting. They noted that there would be additional detail in the budget report for the next Cabinet meeting, including detail of capital and growth and savings proposals. There may need to be further amendments at that second Cabinet meeting. Finally, a meeting of Council would agree the Budget and Council Tax for the authority.

Cabinet members highlighted some of the key investments of the Mayor’s proposed budget from their service areas. All indicated they were very proud of a balanced budget which would deliver manifesto pledges.

The Mayor thanked Cabinet members and officers for their hard work to deliver this budget in an extremely challenging circumstances. He proposed that the draft budget be submitted to Scrutiny. He proposed the recommendations as set out and it was:

RESOLVED to:

1.      Propose a draft General Fund Revenue Funding Requirement of £446.257m for 2023-24 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

2.      Propose to freeze the Tower Hamlets element of Council Tax and to levy a 2% Adult Social Care precept for 2023-24.

3.      Propose that the Interim Corporate Director Resources uses £22.3m from reserves in 2023-24 to support the budget as set out in section 3.9.8 given the shortfall emerging as part of the 2023-24 budget setting process.  

4.      Propose that the Interim Corporate Director Resources be authorised to make any changes required to the budget following receipt of the final Local Government Finance Settlement (LGFS) in consultation with the Mayor and Cabinet Member for Resources and the Cost of Living.

5.      Authorise the Corporate Director Resources to continue the Council’s participation in the 8 Authority Pool for Business Rates with seven other London Local Authorities for 2023-24, subject to due diligence.

6.      Note the latest draft position of the Council’s reserves, subject to final audit of the statements of accounts.

7.      Propose the HRA housing rent and service charge increases as outlined in section 3.11.  This includes increasing housing rents for existing tenanted properties by 7% for 2023-24 and for new build properties by CPI +1% for 2023-24 (as per paragraph 3.11.18 of the report).

8.      Propose that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2023-24. The only changes included are increases to the factor values in line with the NSFF.

9.      Propose that the Minimum Funding Guarantee (the mechanism that guarantees schools a minimum uplift in per-pupil funding) is set as close to 0.5% as affordable, the maximum allowed after consideration for growth and factor changes in School allocations.

10.   Propose that the structure of the Early Years Funding Formula remains unchanged except that the two year old hourly rates will increase in line with the Early Years National Funding Formula.

11.   Note that the Local Council Tax Reduction Scheme will remain unchanged for 2023-24.

12.   Note the Equalities Implications as set out in Section 5 of the report.