Cabinet met on Tuesday 23 January 2024 to discuss a range of financial and operational matters, including the Council's revenue budget monitoring, the Housing Revenue Account budget and rent setting, school funding, and debt management performance. Key decisions were made regarding the Council Tax Support scheme for 2024/25, the procurement strategy for the LBBD Development Framework, and the approval of capital projects for school places and infrastructure.

Revenue Budget Monitoring 2023/24 (Period 8, November 2023)

Cabinet noted the projected revenue overspend for the General Fund at £10.540m for the 2023/24 financial year, with a projected year-end drawdown of £4.88m from reserves. The Housing Revenue Account (HRA) also showed a projected overspend of £5.052m. Despite these overspends, there were positive movements from the previous period, and efforts to reduce spending were ongoing. Cabinet members were encouraged to continue efforts to reduce the overspend by year-end.

HRA Budget and Rent Setting for 2024/25 and Draft 30-Year Business Plan

Cabinet agreed to increase rents for general needs, affordable, and sheltered housing accommodation by 7.7%, in line with government policy, resulting in an average weekly rent increase from £108.72 to £117.07. Service charges for grounds maintenance, concierge, CCTV, and TV aerials will also increase by CPI + 1%, while caretaking, cleaning, and safer neighbourhood charges will vary. Heating and hot water charges will decrease by 5.5%, and water charges will increase by 10%, with sewerage charges remaining the same. Cabinet also agreed the HRA Income and Expenditure budget for 2024/25 and a £24.7m capital programme for the HRA in 2024/25, noting the indicative 4-year HRA capital programme. The draft HRA 30-year business plan was also noted.

Dedicated Schools Budget and School Funding Formula 2024/25

Cabinet approved the strategy for the Dedicated Schools Budget (DSB) for 2024/25, noting the indicative allocation of £367.846m. They also approved the proposed principles for the Local Schools Funding Formula, aiming for a 1:1.36 ratio between primary and secondary phases, and agreed to increase the Early Years funding rate for three and four-year-olds to £5.15 per hour and for two-year-olds to £6.09 per hour. Authority was delegated to the Strategic Director, Children and Adults, in consultation with relevant officers and the Cabinet Member for Educational Attainment and School Improvement, to approve the final 2024/25 school funding formula.

School Place Planning and Capital Investment Update

Cabinet noted the actions being taken to manage school places and meet the demand for specialist places. They approved proposed projects, funding allocations, and procurement routes to support the provision of new school places and improvements, including a new build and remodel at Trinity School, the conversion of Rectory Road Library for Mayesbrook School's Outreach Tuition Plus service, a proposed new ARP at All Saints Catholic Secondary School, and conversion/extension works at Trinity Special School. Authority was delegated to the Strategic Director, Children and Adults, to conduct procurements and award contracts.

Council Tax Support Scheme 2024/25

Cabinet recommended to the Assembly the adoption of Model 1, an income-banded discount scheme, as the Council's replacement Council Tax Support (CTS) scheme for 2024/25, following a positive public consultation. They also agreed to carry forward £250,000 from the Welfare Reserve to support the transition to the new scheme. The new scheme aims to simplify administration, provide consistent support, and better align with the Universal Credit system.

Debt Management Performance 2023/24 (Quarter 2)

Cabinet noted the performance of the Collections service in debt management for the second quarter of the financial year. Improvements were noted in the collection rates for General Income and Adult Social Care costs, and arrears from previous years had also reduced. However, challenges remained, particularly with Council Tax collection rates being slightly lower than the previous year, attributed to factors like the energy rebate scheme and discount reviews.

Calculation and Setting of the Council Tax Base 2024/25

Cabinet agreed that the Council Tax Base for 2024/25 be set at 54,916.54 Band 'D' properties. This represented a 3% increase from the previous year, which, combined with a projected 4.99% Council Tax rate increase, would generate an additional £6.3m in Council Tax income.

Corporate Plan 2023-2026 - Outcomes Framework Performance Report Q1 and Q2 2023/24

Cabinet noted the performance report for the first two quarters of the financial year, which provided an overview of progress towards the seven priorities of the Corporate Plan. The report highlighted areas of improvement, such as increased school ratings and social care satisfaction, but also identified areas of concern, including a rise in fly-tipping incidents and a decline in Council Tax collection rates. Six outcome measures were flagged as 'Red RAG' rated with a negative direction of travel, indicating a need for further focus.

Oxlow Lane Redevelopment - Approval of Disposal, Head Lease and Loan Facility Agreement

Cabinet approved, in principle, the disposal of the Oxlow Lane redevelopment scheme by granting long leases to appropriate Reside entities, namely Barking and Dagenham Homes Ltd and B&D Reside Weavers LLP. They also approved the indicative draft Heads of Terms for leases and loans for the scheme. Authority was delegated to the Strategic Director, Resources, to finalise terms and execute necessary documents, ensuring compliance with relevant legislation.

Procurement Strategy for the LBBD Development Framework 2024 - 2028

Cabinet agreed that Be First, on behalf of the Council, proceed with the procurement of a new four-year Development Framework. This framework, with an estimated value of up to £1.5bn, will involve two Lots: works under £50m and works over £50m, with ten contractors appointed to each Lot. Be First will manage the Framework, with a management charge payable to the Council.

Procurement of 8x8 Telephony Services Contract

Cabinet agreed that the Council proceed with the procurement of a new two-year contract for 8x8 Unified Communications as a Service (UCaaS) and Contact Centre as a Service (CCaaS) through the G-Cloud 13 Framework. This decision was made due to the current financial position and the anticipated advancements in AI and automation in the future, making a large-scale change at this time less advantageous.

Procurement of Culvert Repair Works at Choats Road, Barking

Cabinet agreed that the Council proceed with the procurement of a design and build contract for repair and strengthening works to the culvert bridge at Choats Road, Barking, at an estimated cost of £850,000. Authority was delegated to the Director of Public Realm to award and enter into the contract, subject to budget provision. The preferred solution is to repair and strengthen the existing culvert using a GRP lining.