Purpose

This report sets out the issues and actions which inform the
development of the Council’s Medium Term Financial Strategy
(MTFS) 2024-27.

Content

DECISION
 

1.     
Propose a draft General Fund Revenue Funding Requirement of
£458.661m for 2024-25 subject to
remaining changes arising from the final Local Government Finance
Settlement and any other necessary adjustments.

2.     
Propose to levy a 2% Adult Social Care precept for 2024-25.
 

3.     
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 Local Government Finance Settlement (LGFS)
for further consideration at Cabinet on 31 January 2024.
 

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

5.     
Approve the HRA housing rent and service charge increases as
outlined in section 3.11 of the report.  This
includes increasing housing rents for all properties by 7.7% for
2024-25 (CPI +1%), which will also enable updated modelling of the
HRA for consideration at Cabinet on 31st January
2024.
 

6.     
To note this report incorporates the fees & charges changes
proposed in another report to Cabinet and they are included in the
draft budget and medium-term financial strategy.
 

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 of the
report, in particular the overall
Dedicated Schools Grant (DSG) deficit.
 

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

13.  
Note the Council Taxbase calculations in Appendix 4 to the
report.
 
Action by:
CORPORATE DIRECTOR RESOURCES (J.
LORRAINE)
Interim Director of Finance, Procurement and Audit (J.
Harrison)