The Full Council of Barking and Dagenham Council met on Wednesday 28 February 2024, approving the budget framework for 2024/25 and the Medium Term Financial Strategy for 2024/25 to 2027/28, which included a 4.99% increase in Council Tax. The Council also approved the Treasury Management Strategy Statement for 2024/25 and the Capital Strategy for 2024/25 to 2026/27.

Budget Framework 2024/25 and Medium Term Financial Strategy 2024/25 - 2027/28

The Council approved its budget framework for 2024/25 and its Medium Term Financial Strategy (MTFS) for 2024/25 to 2027/28. This included agreeing to a 4.99% increase in Council Tax, comprising a 2.99% general increase and a 2% increase for the Adult Social Care precept. This brings the total Council Tax for a Band D property to £1,531.35. The Council's element of this is £1,310.70, an increase of £43.61 per year, with the Adult Social Care precept at £220.65, an increase of £29.17 per year. The Greater London Authority (GLA) precept will add a further £471.40 to the Band D amount, an increase of 8.6%.

The General Fund revenue budget for 2024/25 was set at £221.745m, which incorporates a drawdown from reserves of £8.809m to balance the budget. This drawdown follows significant utilisation of reserves in balancing the 2022/23 budget and a forecast overspend of £9.33m for 2023/24. The Council's reserves policy aims to maintain a General Fund balance of £12m.

The MTFS highlights a projected budget gap of £8.809m for 2024/25, increasing to £17.317m by 2026/27, indicating the need for further savings and transformation to ensure long-term financial sustainability. The report detailed significant pressures on the People and Resilience Directorate, which accounts for 59-60% of the net revenue expenditure, largely due to increased demand and complexity in social care services.

The Council also approved its provisional Capital Programme for 2024/25 to 2026/27, with a total gross budget of £209.462m for 2024/25. This includes £161.588m for the Investment and Acquisition Strategy (IAS) and £24.689m for the Housing Revenue Account (HRA). The estimated borrowing requirement for 2024/25 is £103.770m.

The budget framework was agreed by a recorded vote of 42 for, with one against (Councillor Lynda Rice).

Treasury Management Strategy Statement 2024/25 and Capital Strategy 2024/25 to 2026/27

The Council approved its Treasury Management Strategy Statement (TMSS) for 2024/25, along with its Annual Investment Strategy (AIS) and Capital Strategy for 2024/25 to 2026/27. The TMSS outlines the Council's borrowing, investment, and funding plans for the year ahead, adhering to the requirements of the Local Government Act 2003 and CIPFA codes.

As of 30 November 2023, the Council's total external debt was £1.260bn, comprising £296m for the HRA, £689m of long-term borrowing, and £275m of short-term borrowing. The majority of the long-term borrowing is for the IAS. The Capital Financing Requirement (CFR), which measures the Council's underlying need to borrow, is projected to increase to over £2bn by March 2025.

The Council approved an Operational Boundary Limit of £1.9bn and an Authorised Borrowing Limit of £2.0bn for 2024/25. The report highlighted the significant increase in borrowing costs due to rising interest rates, with a 1% increase in assumed borrowing costs potentially leading to an additional £3.3m in costs. The Council's borrowing strategy aims to secure long-term funding at the lowest possible rates, considering internal cash balances, borrowing from other local authorities, PWLB, EIB, and financial institutions.

The IAS, which funds investment in housing and regeneration, is projected to generate £5.2m annually in income. However, the report noted risks associated with high scheme build costs, underperformance in operational management of completed schemes, and high interest rates impacting refinancing and borrowing costs. The Council's total borrowing is forecast to peak at £1.81bn over the MTFS period.

Overview and Scrutiny Committee Annual Report 2022/23

The Assembly noted the Annual Report of the Overview and Scrutiny Committee (OSC) for the 2022/23 municipal year. The report highlighted the committee's work in providing constructive challenge, amplifying public concerns, and driving improvement in public services. Key areas reviewed included Early Help services, fees and charges, repairs and maintenance by the Barking & Dagenham Trading Partnership, housing regeneration, economic infrastructure, young people's employability, customer services, controlled parking zones, and the budget strategy. The OSC also engaged with partners such as the Metropolitan Police, BDTP, and BDSIP.

Reactivation of Uphill and Waters Education Foundation

The Assembly supported the proposal to reactivate the Uphill and Waters Education Foundation to provide additional resources for disadvantaged young people in the borough. Councillors Kangethe and Jones, along with Jane Hargreaves (Commissioning Director, Education), were appointed as Council-appointed Trustees. The London Borough of Redbridge will be asked to appoint a Trustee, and the Commissioning Director, Education, will appoint a member of the local clergy as an ex-officio Trustee. The Foundation, which has been dormant since 2009, holds approximately £90,000 and aims to support young people aged 16-25, particularly those with Learning Difficulties and Disabilities (LDD), in accessing higher education and employment. This initiative is expected to build on the success of the Colin Pond Trust.

Pay Policy Statement 2024/25

The Assembly approved the Pay Policy Statement for the London Borough of Barking and Dagenham for 2024/25. This statement, required by the Localism Act 2011, outlines the Council's approach to the remuneration of its chief officers and other employees. The statement confirms that the Council pays its employees and apprentices at or above the London Living Wage and that pay levels are determined through job evaluation systems. The Chief Executive's salary is £196,650, and the pay structure for Chief Officers differentiates based on risk and responsibility. The statement also details arrangements for contingent pay, pensions, termination payments, and pay ratios, noting that the ratio between the Chief Executive's salary and the lowest paid employee is 1:4.8.

Motions and Questions With Notice

There were no motions or questions with notice raised during the meeting.

The meeting was chaired by Cllr Irma Freeborn.