DECISION:

Propose a draft General Fund Revenue Funding Requirement of £459.429m for 2024-25 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

1.    Propose to levy a 2% Adult Social Care precept and an increase of 2.99% on the general Council Tax element for 2024-25.

2.    Approve that the Corporate Director Resources, in consultation with the Mayor and Cabinet Member for Resources & Cost of living, be authorised to make any changes required to the draft budget following receipt of the Final Local Government Finance Settlement (LGFS).

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

4.    Approve the creation of the Council Tax Cost of Living Relief Fund.

5.    Note the results of the budget consultation at Appendix 10.

6.    Propose the 2024-25 Housing Revenue Account budget as set out in Appendix 7A.

7.    Agree that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2024-25. The only changes included are increases to the factor values in line with the NSFF.

8.    Agree 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.

9.    Agree that the structure of the Early Years Funding Formula remains unchanged except for the introduction of the expanded two-year-old entitlement and new provision from 9 months from September 2024 with revised hourly rates increases in line with the Early Years National Funding Formula.

10.Note that the Local Council Tax Reduction Scheme will remain unchanged for 2024-25.

11.Note the School funding position set out at Section 3.10, in particular the overall Dedicated Schools Grant (DSG) deficit.

12.Note the Equalities Implications as set out in Section 4.

13.Approve the three-year General Fund (GF) Capital Programme 2024-27 as set out in Appendix 8A, totalling £202.255m.

14.Approve the three-year Housing Revenue Account (HRA) Capital Programme 2024-27 as set out in Appendix 8D, totalling £384.918m.

15.Approve the revised 2023-24 General Fund and HRA Capital Programme budgets as set out in Appendix 8A and 8D, totalling £88.862m and £72.157m respectively.

16.Approve the budget allocation growth and reductions to schemes in the General Fund and Housing Revenue Account capital programme as detailed in Appendix 8C, subject to sign off through the council’s capital governance process.

17.Approve delegated authority to the Corporate Director of Housing and Regeneration in consultation with the Corporate Director of Resources to take any steps required to deliver the capital programme including but not limited to going out to tender, appointing consultants and contractors in accordance with the Procurement Procedures, acquiring land interests and appropriating land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes, subject to approved budgets and in consultation with the Mayor and the Cabinet Member.

18.Approve budget provisions relating to the housing capital rolling programme to maintain and improve the existing council stock, amounting to 23.903m in 2023-24, £23.000m in 2024-25, £28.000m in 2025-26 and £34.000m in 2026-27, totalling £108.903m, in line with the latest update to the 30-year HRA Business Plan, with spend to be only committed in consultation with the Mayor and the Cabinet Member for budget provisions relating to financial years 2024-25 to 2026-27.

All capital projects within the capital programme will only proceed once all due diligence relating to the council’s capital governance process has been completed.

Action by:

CORPORATE DIRECTOR RESOURCES (J. LORRAINE)

Interim Director of Finance, Procurement and Audit (J. Harrison)

The Mayor considered Items 6.3 (HRA Fees and Charges), 6.2 (HRA Strategy) and 6.1 (this item) together. The combined minute for all three agenda items is provided here.

Councillor Saied Ahmed, Cabinet Member for Resources and the Cost of Living introduced the reports that provided an updated proposed Budget and medium-term financial plan position to Cabinet including changes from the previous draft. A new HRA fees and charges schedule and a new HRA strategy formed an integral part of the revised proposals.  

Councillor Ahmed advised the revised position included further investment proposals including cost-of-living crisis support, and new initiatives for residents to get active and involved in the running of their borough, including:

• Continued investment in young people with £750,000 for up to 1,250 Education Maintenance Allowance awards, increasing the amount they receive from £400 to £600 per year.
• A total of £1.2m for the Mayor’s University Bursary, increasing the £1,500 per pupil award from 400 to 800 students.
• £248,000 a year to improve health and isolation by providing free swimming and aquatic sessions for women and girls over 16 across a range of facilities in the borough, as well as men over 55 years old.
• Promotion of Tower Hamlets as a place to visit, work and invest in, including a project to recognise residents from diverse communities and involve them in council delivery.
• £1.4m to create a culturally sensitive Women’s Resource Centre to provide health, educational and employment advice and benefits to local Bengali-British women. 
• £1.5m for culturally sensitive Drug Misuse Treatment Centre to diversify drug treatment for BAME and other groups.
• £15m capital investment to create an Institute of Academic Excellence - a world class A-level institution that will look to improve attainment, and send more local children to Oxbridge, Russell Group, and world class universities.
• £20m capital investment in a culturally sensitive Adult Care Home (extra care), a standalone 50-60 bed adult care facility designed to promote independence and wellbeing for elderly and vulnerable BAME residents.
• Investment in a Somali Resource Hub – a dedicated resource hub for the growing Somali population in Tower Hamlets.

Councillor Ahmed explained how the proposals meet the objective of a securing a sustainable financial position across the medium term.

Julie Lorraine, Corporate Director Resources, provided additional details. Julie explained that the proposed HRA fees and charges had been prepared using same approach as with General Fund. Not all HRA charges are charged to tenants. Julie explained the main provisions of the proposed HRA strategy and the rationale for each and how they would help to address the key housing challenges in the borough.

Cabinet members welcomed the proposals and highlighted some of the ways the proposals in the three reports would improve services within their portfolio.

The Mayor welcomed the report and offered his thanks to the Lead Member, Corporate Director Resources and all members and officers involved in the preparation of the three reports. He indicted he was proud to recommend his proposed budget to full Council for approval.

RESOLVED that the Mayor in Cabinet:

1.    Proposes a draft General Fund Revenue Funding Requirement of £459.429m for 2024-25 subject to remaining changes arising from the final Local Government Finance Settlement and any other necessary adjustments.

2.    Proposes to levy a 2% Adult Social Care precept and an increase of 2.99% on the general Council Tax element for 2024-25.

3.    Approves that the Corporate Director Resources, in consultation with the Mayor and Cabinet Member for Resources & Cost of living, be authorised to make any changes required to the draft budget following receipt of the Final Local Government Finance Settlement (LGFS).

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

5.    Approves the creation of the Council Tax Cost of Living Relief Fund.

6.    Notes the results of the budget consultation at Appendix 10 to the report.

7.    Proposes the 2024-25 Housing Revenue Account budget as set out in Appendix 7A to the report.

8.    Agrees that the National Schools Funding Formula (NSFF) adopted by Tower Hamlets originally in 2019-20 continues for 2024-25. The only changes included are increases to the factor values in line with the NSFF.

9.    Agrees 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.Agrees that the structure of the Early Years Funding Formula remains unchanged except for the introduction of the expanded two-year-old entitlement and new provision from 9 months from September 2024 with revised hourly rates increases in line with the Early Years National Funding Formula.

11.Notes that the Local Council Tax Reduction Scheme will remain unchanged for 2024-25.

12.Notes the School funding position set out at Section 3.10 of the report, in particular the overall Dedicated Schools Grant (DSG) deficit.

13.Notes the Equalities Implications as set out in Section 4 of the report.

14.Approves the three-year General Fund (GF) Capital Programme 2024-27 as set out in Appendix 8A to the report, totalling £202.255m.

15.Approves the three-year Housing Revenue Account (HRA) Capital Programme 2024-27 as set out in Appendix 8D to the report, totalling £384.918m.

16.Approves the revised 2023-24 General Fund and HRA Capital Programme budgets as set out in Appendix 8A and 8D to the report, totalling £88.862m and £72.157m respectively.

17.Approves the budget allocation growth and reductions to schemes in the General Fund and Housing Revenue Account capital programme as detailed in Appendix 8C to the report, subject to sign off through the council’s capital governance process.

18.Approves delegated authority to the Corporate Director of Housing and Regeneration in consultation with the Corporate Director of Resources to take any steps required to deliver the capital programme including but not limited to going out to tender, appointing consultants and contractors in accordance with the Procurement Procedures, acquiring land interests and appropriating land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes, subject to approved budgets and in consultation with the Mayor and the Cabinet Member.

19.Approves budget provisions relating to the housing capital rolling programme to maintain and improve the existing council stock, amounting to 23.903m in 2023-24, £23.000m in 2024-25, £28.000m in 2025-26 and £34.000m in 2026-27, totalling £108.903m, in line with the latest update to the 30-year HRA Business Plan, with spend to be only committed in consultation with the Mayor and the Cabinet Member for budget provisions relating to financial years 2024-25 to 2026-27.

All capital projects within the capital programme will only proceed once all due diligence relating to the council’s capital governance process has been completed.