Agenda item
Budget Report 2024-25 and Medium Term Financial Strategy 2024-27
Minutes:
Cllr Saied Ahmed, Cabinet Member for Resources presented the Budget Report 2024-25 and Medium Term Financial Strategy 2024-27 to the committee, with Denise Radley, Corporate Director Health Adult Social Care & Deputy Chief Executive, Julie Lorraine, Corporate Director for Resources, Raj Mistry, Interim Corporate Director of Communities, Abdulrazak Kassim, Director Finance, Procurement and Audit and Chris Leslie, Head of Strategic and Corporate Finance.
The committee made the following comments and questions:
- Is the council getting the best value from the waste services in the borough? Will the investment be enough to turn the service around? Cllr Saied Ahmed reflected on the current state of the waste service and reported on how the investment will be used across the service, including evening and weekend collections and additional staff. Officers confirmed that the service has collected feedback from residents on the waste service and targeted response in waste has been provided, like timed business waste collections, a media campaign on recycling, and action on fly tipping.
- What benefit will residents see from the large investment in waste services? Officers detailed the range of improvements that will be rolled out across the borough, including, bringing waste service workers in house and improvements to the waste service vehicle fleet. Cllr Saied Ahmed outlined how the waste emergency that was declared last year will be tackled through this investment.
- The Cabinet Member should state if he is completely reassured that the council tax increase will not affect the most vulnerable in the borough.
- How sustainable is the continual draw down of the council’s reserves? Is this advisable with the recent council budget overspend? Officers detailed how the use of reserves is needed but is due to an ambitious budget rather than a draw down to pay for services, this is part of the planned ear marked usage of reserves. The current forecast of the budget contains an overspend, which is based on a worst-case scenario planning and the council is working to ensure that it does not finish the year on an overspend.
- The resident support scheme funding comes from a draw down, but funding is taken away elsewhere in the budget? Officers detailed how the resident support scheme will be funded, including from government schemes, so the cost of the scheme is being funded across different parts of the budget and will not see a decrease in funds. Some of the funding will include admin of the scheme.
- While the council tax increase may seem small across the residents in the borough, some residents are seeing large increases in council rent, will a rent cap be considered? Officers detailed why the maximum rent increase was sought by the council and how this will see investment in housing across the borough, making more homes for residents that need it. Cllr Saied Ahmed highlighted how while there will be an increase in rent, there are also services like free school meals and other services for residents who need support, so the most vulnerable will be getting the most support in this budget.
- The recent Local Government Association governance review referred to the Mayor’s Office as a “council within a council”. Can the lead member justify the cost of the Mayor’s office within this budget? Cllr Saied Ahmed outlined how the Mayor’s Office deals with a large backlog in housing issues and other areas that need urgent support.
- How will the council be engaging with residents and businesses over the increase business and council tax? Officers outlined how the council engaged with residents previously and this can be shared with the committee.
- How does the Tower Hamlets Council Budget compare to other similar authorities? Cllr Saied Ahmed stated the council benchmarks against other councils and will review this quarterly, in areas like adult social care. However, Tower Hamlets does have unique issues unlike other councils.
The committee discussed recommendations for the budget including a greater breakdown on the waste investment, cost of living support, parking, adult social care, support for residents with rent increases and cost effectiveness of the Mayor’s Office.
RESOLVED
The committee noted the report.