The Cabinet of Barking and Dagenham Council met on Tuesday 17 September 2024 to discuss a range of financial, developmental, and policy matters. Key decisions included approving budget increases for development projects, extending a loan to Barking & Dagenham Trading Partnership Ltd, and adopting new planning policies.

Revenue Budget and Capital Programme Monitoring 2024/25 (Quarter 1, June 2024)

The Cabinet received a report detailing the Council's revenue budget and Capital Programme monitoring position for the first quarter of the 2024/25 financial year. The Council's General Fund revenue expenditure was projected to be £225.59m against a revised budget of £221.745m, indicating a forecast overspend of £3.844m. This overspend was attributed to several factors, including a projected overspend on the Investment and Acquisition Strategy (IAS) budget of £3.871m and additional pressures of approximately £2.1m within Adult Social Care.

Despite these pressures, the Housing Revenue Account (HRA) was showing a projected underspend of £0.395m. The Dedicated Schools Grant (DSG) budget was forecast to overspend by £4.137m, primarily due to increased demand and provider costs for out-of-borough placements and an increase in demand for Post 16 top-up payments. The 2024/25 Capital Programme was forecasting an underspend of £0.255m against a re-profiled budget of £260.533m.

Cabinet resolved to note the projected £3.844m revenue overspend for the General Fund, approve a further drawdown of £8.37m from General Fund reserves and £3.871m from the IAS reserve, and note the progress on savings delivery. They also noted the projected underspend on the HRA, the overspend within the DSG, and the Q1 Capital Monitoring forecast. Finally, Cabinet approved the reprofiling of the Capital budget.

Change to Loan Terms and Conditions to Barking & Dagenham Trading Partnership Ltd

The Cabinet discussed a report concerning a proposed extension of a working capital loan to Barking & Dagenham Trading Partnership Ltd (BDTP). The original £5.0m loan, approved in July 2021, was due for repayment by July 2024. However, BDTP was unable to repay the loan or service the accrued interest of approximately £0.9m due to insufficient cash flow, exacerbated by additional savings targets approved in May 2024.

An independent review by Ernst & Young (EY) identified options, including converting the debt to an equity investment, but this was contingent on demonstrating long-term value to the Council. Strategic discussions with the BDTP Group Board were ongoing.

A member of the public, Mr Lismore, raised concerns about BDTP's service quality and costs, questioning the value of converting the debt to equity and seeking clarification on valuation exercises. He also inquired about the consideration of private providers. The Cabinet Member acknowledged these points, stating that a final decision on BDTP's future viability was not yet appropriate due to ongoing discussions and due diligence.

Cabinet resolved to agree the extension of the current £5.0m loan to BDTP until 31 March 2025, based on the same terms as the previous agreement.

Be First Development Update

An update was provided on development projects completed or nearing completion by Be First in 2024. Be First had delivered 745 new homes by August 2024, with a further 212 homes expected by the end of the year. Several projects were nearing handover, and unavoidable additional costs had arisen due to Extension of Time claims under contractual obligations.

Cabinet resolved to note the successful delivery of 745 new homes and the planned handover of a further 212 homes. They also approved increases to the Capital budgets for the Woodward Road (£3.6m) and Gascoigne East Block I (£750,000) schemes. In principle, a budget increase of up to £2.5m was approved for the Roxwell Road scheme, with authority delegated to the Strategic Director, Resources, to agree the final budget requirement.

Permanent Pavement Licensing Regime

The Cabinet considered the introduction of a permanent pavement licensing regime, enabling the hospitality sector to place furniture on the highway. This regime is established under the Levelling-up and Regeneration Act 2023. The report outlined considerations for fees, aiming for cost recovery, and the maximum duration of licences.

Cabinet colleagues supported the new regime and suggested actively encouraging businesses to apply.

Cabinet resolved to agree that Pavement Licences would be valid for a maximum duration of 12 months and that fees would be set at £350 for existing licence holders and a maximum of £500 for new applicants.

Supported and Semi-Independent Accommodation Open Framework Tender

The Cabinet received a report on procurement arrangements for supported and semi-independent accommodation for looked-after young people aged 16 and older. The proposal was to establish an Open Framework comprising four lots to cover different types of accommodation and support needs, including for young parents.

The Cabinet Member for Adult Social Care and Health Inequalities suggested incorporating the Council's Social Value framework to encourage support for looked-after children and young people.

Cabinet resolved to agree that the Council would proceed with the procurement of an Open Framework and delegate authority to the Strategic Director, Children and Adults, to conduct the procurement and award agreements.

Adoption of the Planning Obligations Supplementary Planning Document

The Cabinet was updated on the outcome of the public consultation for the draft Planning Obligations Supplementary Planning Document (SPD). The SPD aims to provide clarity on the Council's approach to Section 106 planning obligations alongside the Community Infrastructure Levy (CIL).

Key themes for contributions included affordable housing, carbon offsetting, air quality, employment and skills, affordable workspace, education and healthcare, public realm, highways, open space, and biodiversity. Cabinet colleagues emphasised the importance of new infrastructure, particularly health facilities, being in place early in major developments.

Cabinet resolved to recommend the Assembly to note the SPD Consultation Summary Report, adopt the Planning Obligations SPD, and delegate authority to the Strategic Director, Inclusive Growth and Place, for final minor edits.

Adoption of the Barking and Dagenham 2037 Local Plan

The Cabinet reviewed the final draft of the Barking and Dagenham 2037 Local Plan, following public consultation and examination by the Planning Inspectorate. The Local Plan sets out a spatial vision and framework for future development, reflecting national priorities on housing, the economy, infrastructure, and environmental protection.

Amendments had been made in response to consultation and the Planning Inspector's report. An emerging issue of developments on grey belt land was noted, but not included in the 2037 Local Plan due to the need for further consultation and examination. Cabinet colleagues discussed the potential for certain green belt sites to be considered under new grey belt proposals.

Cabinet resolved to recommend the Assembly to adopt the Barking and Dagenham 2037 Local Plan, delegate authority for final minor edits, and note the Inspectors' letter and accompanying modifications.

Debt Management Performance - Quarter 1 2024/25

The Cabinet received the debt management performance report for the first quarter of the 2024/25 financial year. The report indicated that despite economic challenges, the Council's debt management service was performing well, with income levels higher than the previous year in most areas. However, room for improvement was identified through proactive collection and early intervention. Challenges were noted regarding the migration of Housing Benefit recipients to Universal Credit, causing arrears.

Cabinet resolved to note the performance of the debt management function.

Contract for the Provision of Print Services for Marketing and Information Materials and Web-to-Print

Approval was sought to directly award a contract for print services to Allied Publicity Services (Manchester) Limited for an initial three-year period, with an option to extend for a further 12 months, under the CCS Framework RM6071 Print Marketplace. The report highlighted benefits including value for money, consistency of service, compliance, and a more streamlined digital process.

Cabinet resolved to agree that the Council proceed with the procurement of this contract and authorise the Director of Strategy to conduct the procurement and award the contract.

Utilising the Levelling Up Fund Grant to Acquire Commercial and Residential Leaseholder Properties at Dagenham Heathway

The Cabinet discussed the proposed use of a £10.88m Levelling Up Fund (LUF) grant to support early-stage interventions for the redevelopment of Dagenham Heathway town centre. The grant funding, requiring Council match-funding, is allocated for two projects: acquiring protected commercial and residential leaseholder interests to enable vacant possession for future redevelopment, and funding streetscape improvements and refurbishment works.

Cabinet resolved to agree to progress the acquisition of 24 residential leasehold properties at Millard Terrace and 19 commercial leasehold properties at Dagenham Heathway shopping centre. They delegated authority to the Strategic Director, Resources, to negotiate final terms, and agreed in principle to the use of Compulsory Purchase Powers if negotiations fail. Cabinet also agreed to proceed with the procurement strategy for an external design team and agreed the allocation of Council match-funding of £2.245m.

Councillor Darren Rodwell, Leader of the Council

In light of Councillor Darren Rodwell's decision to stand down as Leader of the Council and Chair of the Cabinet following the meeting, Councillor Dominic Twomey led tributes to Councillor Rodwell for his leadership over the past decade. Councillor Rodwell thanked his Cabinet colleagues and officers for their support.