The Cabinet of Westminster Council met on Thursday 29 February 2024 and approved the appointment of Mount Anvil New Holdings Limited as the joint development partner for the Church Street Site A development. The meeting also saw the approval of the council's budget for the upcoming financial year, including a council tax increase.

Church Street Site A – Appointment of Joint Venture Development Partner

The Cabinet approved the appointment of Mount Anvil New Holdings Limited as the Council's joint development partner for the Church Street Site A development. This decision follows an extensive public sector procurement process. The Cabinet also approved the incorporation of a Limited Liability Partnership (LLP) to be the corporate entity for the joint venture, with both the Council and Mount Anvil as members. Authority was delegated to the Executive Director of Regeneration, Economy and Planning, in consultation with other relevant officers, to finalise and enter into all necessary legal and financial documents to establish the LLP and proceed with the development. Further delegations were made to the Cabinet Member for Finance and Council Reform regarding the appropriation and disposal of land to the JV. The Cabinet also agreed to delegate authority to the Executive Director of Democracy, Law and People to amend the Terms of Reference of the Shareholder Committee if required.

Councillor Matt Noble, Cabinet Member for Regeneration and Renters, highlighted the significance of the decision, noting the long-standing discussions around the regeneration of Church Street. He emphasised the scheme's merits, particularly in delivering genuinely affordable housing and the strong support from the resident community, evidenced by a 73% supportive ballot. Debbie Jackson, Executive Director of Regeneration, Economy and Planning, underscored that the appointment of Mount Anvil was the outcome of a robust procurement process designed to ensure best value for the local authority.

Business and Financial Planning 2024/25 to 2026/27

The Cabinet approved recommendations for Full Council regarding the Council's budget for 2024/25 to 2026/27. This includes agreeing the Council Tax for a Band D property at £501.76 for 2024/25. Councillor David Boothroyd, Cabinet Member for Finance and Council Reform, noted that the budget aims to continue the development of the Fairer Westminster strategy with investments in priorities such as CCTV, community hubs, and carer pay. He highlighted that savings have been made without harming services, and income has increased through more realistic fees and charges. The budget also accounts for additional spending due to the temporary accommodation crisis. Gerald Almeroth, Executive Director of Finance and Resources, acknowledged the volatility of temporary accommodation costs but assured that officers have worked to manage this, though significant risk remains. He also noted a £48m gap that the Council will work to close. Councillor Fisher, Chair of the Budget Scrutiny Task Group, emphasised that temporary accommodation is a critical issue and commended the council's actions to increase cost-effective supply.

The approved recommendations to Full Council include:

• Agreement on the Council Tax for a Band D property at £501.76 for 2024/25.
• Specification of council tax for the City of Westminster, excluding specific areas, for the year ending 31 March 2025.
• Agreement on precepts and special expenses for properties in Montpelier Square and Queen's Park Community Council.
• Agreement on the formal council tax resolution for 2024/25, including a council tax requirement of £68.889m.
• Noting the proposed Greater London Authority precept (Band D) of £471.40.
• Continuation of the Westminster Community Contribution scheme.
• Approval of the proposed General Fund net budget requirement of £205.545m for 2024/25 to 2026/27.
• Approval of savings, pressures, and investments for 2024/25 to 2026/27.
• Noting of Equality Impact Assessments to inform budget consideration.
• Noting of the Housing Revenue Account (HRA) Business Plan 2024/25 and 30 Year Housing Investment Plan.

Capital Strategy 2024/25 to 2028/29

The Cabinet approved recommendations for Full Council regarding the Capital Strategy for 2024/25 to 2028/29. Councillor Boothroyd described it as an ambitious programme that looks to deliver genuinely affordable housing, the Oxford Street programme, local high streets, North Paddington, refurbishment of the Seymour Centre, and progress towards net zero by 2030. Gerald Almeroth noted that the programme has two main themes: development and strategic investment, and operational investment in maintaining assets, with a significant focus on delivering more affordable housing.

The approved recommendations include:

• Approval of the capital strategy.
• Approval of capital expenditure for the General Fund for 2024/25 to 2028/29 and future years to 2037/38.
• Ensuring all development and investment projects follow the approved business case governance process.
• Approval that no financing sources will be ring-fenced unless stipulated by regulations or agreements.
• Approval of the proposed financing of the capital programme and its revenue implications.
• Delegation to the Executive Director of Finance and Resources for decisions surrounding the financing of the capital programme to ensure flexibility.

Integrated Investment Framework 2024/25

Councillor Boothroyd introduced the Integrated Investment Framework, noting that it is decided annually with little year-on-year change and that the Council has been managing its investments well. Gerald Almeroth added that the framework has been updated for key issues such as interest rates and inflation risk, demonstrating good performance and prudent risk management.

The Cabinet approved recommendations for Full Council to:

• Approve and implement the Integrated Investment Framework.
• Aspire to an overall return on Council investments that meets forecasts for inflation over the medium term.
• Use the benefits of investing in the Pension Fund as a benchmark for evaluating other investments.
• Adopt the asset allocation percentage ranges set out in the framework and work towards achieving them.
• Agree that the overarching objective is to achieve an overall return matching CPI inflation over the medium term, reduce costs and liabilities, maintain adequate cash balances, and avoid unnecessary risk to capital value.
• Agree that assets must only be acquired for strategic purposes, with exceptions for out-of-borough acquisitions.
• Note that the Investment Executive will implement, monitor, and report on the investment strategy.

Treasury Management Strategy Statement for 2024/25 to 2028/29

Councillor David Boothroyd highlighted the importance of prudent financing of the capital programme and that borrowing remains within credential indicators, with the Council forecast to remain under-borrowed. He also noted that the Council will seek a public credit rating due to delays in national audit. Gerald Almeroth explained that while other councils seek credit ratings to issue bonds, Westminster is doing so for a different reason, with the process expected to take two to three months.

The Cabinet approved recommendations for Full Council to:

• Approve the Treasury Management Strategy Statement.
• Approve the borrowing strategy and borrowing limits for 2024/25 to 2028/29.
• Approve the Prudential Indicators.
• Approve the Annual Investment Strategy and approved investments.
• Approve the Minimum Revenue Provision Policy.
• Delegate authority to the Executive Director of Finance and Resources to proceed with obtaining a credit rating and appointing Link Group as a Treasury consultant for this purpose.

Housing Revenue Account 30-Year Business Plan and Housing Investment Plan 2024/25

Councillor Liza Begum introduced the report, which presents a revised 30-year business plan for the HRA, aiming for a sustainable and long-term financial footing. The plan includes a recommended rent increase of 7.7% (CPI+1) and an extension of the Rent Support Fund to absorb inflation, increase funding for frontline services, and provide additional capital funding for housing stock investment. Sarah Warman noted that the plan incorporates measures to ensure resilience against the challenging economic outlook, including healthy reserve balances and revenue budget contingencies.

The Cabinet approved recommendations for Full Council to:

• Approve the HRA revenue budget for 2024/25.
• Note the HRA 5-year and 30-year revenue budgets.
• Approve the HRA 5-year Capital Programme totalling £920.52m.
• Note the 30-year Capital Programme totalling £2.493bn.
• Approve the inclusion of all Fairer Westminster investments, including the extension of the HRA Rent Support Fund by £1.050m for 2024/25.
• Approve a rent increase of 7.7% from 1 April 2024, in line with national policy, while noting the Council's discretion on rents for re-lets.
• Approve an increase of 6.7% to fees for garages, sheds, and parking from 1 April 2024.
• Approve that tenant service charges be varied in line with estimated actual costs for 2024/25.
• Note the HRA reserves and balances for the 5-year Business Plan.

WCC Pay Policy 2024-25

The Cabinet approved the Pay Policy Statement 2024/25 for recommendation to Full Council.

The meeting concluded with the Cabinet approving the appointment of Mount Anvil New Holdings Limited as the joint development partner for the Church Street Site A development. This significant decision marks a key step in the regeneration of the Church Street area, aiming to deliver new homes, improved community facilities, and economic benefits. The Cabinet also approved the council's budget for the upcoming financial year, including a council tax increase, and noted various financial and investment strategies.