The Cabinet meeting on 19 September 2023 addressed a significant projected overspend on the General Fund and Housing Revenue Account, alongside crucial decisions on major regeneration projects and the reprocurement of essential services. Key decisions included approving revised proposals for the Gascoigne East Phase 3b development and the Beam Park development, agreeing to re-procure the Leisure Services Contract, and adopting a new Appointee and Deputyship Service Policy.

Revenue Budget Monitoring 2023/24 and Capital Programme Update

The council is facing a projected revenue overspend of £14.579m on its General Fund for the 2023/24 financial year, with a further £7.5m overspend forecast for the Housing Revenue Account. These significant overspends are attributed to factors such as increased demand and costs in social care, inflation, and pay awards. To mitigate these pressures, the council is implementing cost-saving measures and drawing down from reserves, though this is noted as unsustainable in the long term. The Capital Programme has seen revised budgets, with a forecast outturn for 2023/24 showing an overspend of £3.471m. Issues with property handovers and lettings within the Investment and Acquisition Strategy (IAS) were also highlighted, with efforts underway to improve these processes. Virements totalling £2.718m were approved from the central budget to cover inflation costs.

Gascoigne East Phase 3b Development - Revised Proposal

Cabinet approved revised proposals for the Gascoigne East Phase 3b development, agreeing to proceed with Wates Construction Ltd at a new contract sum of £147,996,637. This decision was made despite increased costs primarily due to programme delays and construction inflation. To ensure the project's viability and meet Investment and Acquisition Strategy (IAS) metrics, a package of measures was approved, including switching market rent properties to affordable rent, applying service charges to London Affordable Rent homes, Council funding for public realm works, and utilising Right to Buy receipts and GLA grants. The revised proposals aim to deliver 100% affordable housing and are projected to meet IAS return metrics, resulting in a Net Present Value of +£40m and positive cumulative cashflow in year 1.

Development of Land at Beam Park, Dagenham - Revised Proposals

Revised proposals for the Beam Park development were approved, focusing on Phase 6 of the project. Cabinet agreed to acquire 520 units from Countryside Properties (CPUK) on a turnkey basis for an estimated total price of £166.4m, with a total scheme cost of £183.5m. This decision includes allocating up to £36.4m of Right to Buy receipts to ensure positive cashflows for Phase 6. A handover loan of £114,356,401 to Reside was also approved for the development, ownership, letting, and management of these properties. However, due to insufficient Right to Buy receipts and ongoing construction inflation, the Council confirmed it would not proceed with the acquisition of properties within Phase 7, as it could not meet the funding condition to ensure a positive cashflow.

Re-Procurement of Leisure Services Contract

Cabinet agreed to proceed with the procurement of a new Leisure Services Contract to manage Abbey Leisure Centre, Becontree Heath Leisure Centre, and the Jim Peters Stadium. The current operator has terminated their contract, effective from 14 September 2024, necessitating a new procurement process. The new contract will be for an initial 10-year term with a potential five-year extension. The procurement strategy will focus on maximising financial return for the Council, increasing resident participation in activities, particularly among under-represented groups, and meeting health outcomes. The evaluation criteria will be weighted at 80% for price, 10% for quality, and 10% for social value.

Sale of Land at the Former Bull Public House, Rainham Road South, Dagenham

Cabinet approved the disposal of a small plot of Council-owned land adjacent to the former Bull Inn on Rainham Road South to Rainham Road South Limited, a subsidiary of Hollybrook. This sale will facilitate Hollybrook's redevelopment of the site for approximately 72 new homes, including 35% affordable housing. The sale is expected to transform an eyesore site, deliver new homes, generate a small capital receipt, and increase Council Tax revenue, while also avoiding future maintenance costs for the Council.

Annual Youth Justice Plan 2023/24

The Barking and Dagenham Youth Justice Plan for 2023/24 was noted and recommended for adoption by the Assembly. The plan highlights the service's positive impact on reducing first-time entrants into the criminal justice system, re-offending rates, and the number of children in custody, although rates for custody and first-time entrants remain higher than London and national averages. Key priorities for the coming year include continued focus on reducing first-time entrants and custody, enhancing education, training, and employment opportunities, developing targeted interventions for young women and girls, and addressing serious youth violence and substance misuse. The plan also emphasises embedding anti-racist practice standards and improving partnership working.

Appointee and Deputyship Service Policy

Cabinet agreed to the new Appointee and Deputyship Service Policy, to be effective from 1 April 2024, and approved the commencement of public consultation on the proposed charges associated with the policy. The service supports residents who lack the capacity to manage their finances, with the new policy introducing charges to cover the costs of providing these services, which are noted as being significantly lower than private sector alternatives. The policy aims to ensure vulnerable residents are safe, protected, and supported, preventing them from falling into debt or facing eviction.

Contract for School Data and Applications Solution Software

Cabinet agreed to proceed with a contract with Access Solutions for the Synergy database merge and the purchase of additional software modules. This aims to create a single view of the child for the education service, improving safeguarding and business efficiency. The seven-year contract, acquired via the Yorkshire Purchasing Organisation (YPO) Framework, will cost £1,096,283.50 over its duration, with a one-off implementation and training cost in the first year. This initiative is expected to have no adverse financial impact on the Council's general fund.

Contract for the Provision of Security Doors and Screens for Council and Other Properties

Cabinet agreed to proceed with the procurement of a new contract for security screens and doors. This service is essential for securing vacant, vandalised, or properties requiring forced entry, protecting council assets and ensuring resident safety. The contract will be for a maximum five-year term (3+2 years) and will be procured through an open tender process, with evaluation criteria weighted at 80% for price, 10% for quality, and 10% for social value.

Debt Management Performance 2023/24 (Quarter 1)

Cabinet noted the debt management performance report for the first quarter of 2023/24. While collection rates have improved in some areas compared to the previous year, challenges remain due to the cost-of-living crisis and the transition from Housing Benefit to Universal Credit. The council is implementing new initiatives, including improved communication strategies and direct debit campaigns, to enhance collection rates. Efforts are also being made to support residents in financial difficulty. The report highlighted improvements in adult social care debt collection, which has risen to 50.9% by the end of August, with a target of 60% for the year.

The meeting concluded with the Chair declaring the meeting closed.