The Cabinet of Harrow Council met on Thursday 17 December 2020 to discuss the escalating COVID-19 situation, approve a draft revenue budget and capital programme, and consider grant support for local businesses. Key decisions included noting the verbal update on the COVID-19 pandemic and authorising corporate directors to implement responses using central government funding, approving the draft revenue budget and medium-term financial strategy for consultation, and agreeing to allocate the Additional Restrictions Grant to support local businesses.

COVID-19 Update

The Cabinet received a presentation detailing the rapidly escalating COVID-19 situation in London and Harrow, with cases per 100,000 people in Harrow at 302.6, a figure that had doubled in less than a week. Hospital admissions were increasing, leading to London and Harrow being placed into Tier 3 restrictions. In response, the Council was developing a detailed action plan to break the chain of infection. This plan includes a significant increase in Council activity across a range of measures, such as rolling out extensive community testing using both PCR and Lateral Flow tests, with plans for multiple testing sites across the borough. The Council also intends to enhance its enforcement activities by implementing COVID-19 Marshals to promote compliance with public health measures and educate businesses. Furthermore, there will be a significant increase in communications and community engagement to ensure key messages reach residents. The Council acknowledged the strain this would place on its capacity and the need to reprioritise other services. Preparations for the vaccine roll-out were also discussed, with the first vaccinations having already taken place in Harrow at The Hive, and further major vaccination sites planned.

Edgware Town Centre Supplementary Planning Document

The Cabinet approved the draft Edgware Town Centre Supplementary Planning Document (SPD) for public consultation. This joint document, prepared with the London Borough of Barnet, aims to guide regeneration and development in the town centre over the next decade. It sets out expectations for improvements to the public realm, night-time economy, leisure, highways, and the provision of new housing and infrastructure. The SPD will not change underlying planning legislation but will inform planning applications within the Edgware Town Centre area.

Grant Support to Local Businesses - Additional Restrictions Grant

The Cabinet agreed to allocate the Additional Restrictions Grant (ARG) to support local businesses adversely impacted by the COVID-19 pandemic. The grant will be allocated in accordance with principles that prioritise non-essential retail, hospitality, cultural, sports, and leisure sectors, as well as their suppliers, with a focus on businesses with a rateable value below £51,000. A percentage of the grant will also be allocated to businesses without rateable values but with fixed costs, and 5% will be dedicated to business support programmes to help businesses survive and grow, including trading online. An additional 2% will be allocated to town centre improvements to enhance business opportunities.

Draft Revenue Budget 2021/22 and Medium Term Financial Strategy 2021/22-2023/24

The Cabinet approved the draft revenue budget for 2021/22 and the Medium Term Financial Strategy (MTFS) for 2021/22 to 2023/24 for general consultation. The report highlighted a significant budget gap, exacerbated by the COVID-19 pandemic, which has led to increased expenditure and loss of income. The Council faces a challenging financial position due to historically low central government funding and rising demand for services, particularly in adult social care. The draft budget proposes a balanced position for 2021/22, with projected budget gaps for the following two years. It also notes proposals to increase core Council Tax by 1.99% in 2021/22 and 2022/23, and a further 3.0% for the Adult Social Care Precept in 2021/22. The Cabinet noted the need to develop a fully costed budget and implementation plan to address future financial challenges.

Draft Capital Programme 2021/22 to 2023/24

The Cabinet noted the draft capital programme for 2021/22 to 2023/24. The proposed programme totals £232.778m, supported by £80.845m in external funding. A significant reduction in the programme was noted due to the removal of projects previously intended to generate revenue through commercial investment. The report detailed changes to the programme, including additions for specific projects funded by additional grants and virements, and outlined the capital financing costs associated with the programme.

Revenue and Capital Monitoring 2020/21 - Quarter 2

The Cabinet noted the revenue and capital forecast positions as at Quarter 2 (30th September 2020). A net forecast underspend of (£29k) was reported on the business as usual revenue budget, but this was offset by a COVID-19 impact forecast of £608k, resulting in a net overspend of £578k. Grave concerns were expressed regarding the legacy impact of COVID-19 on the Medium Term Financial Strategy. The Capital Programme reported a forecast spend of £134.366m against a budget of £305.415m, with significant slippage primarily due to the pause in the Property Investment Programme and delays in housing schemes.

Calculation of Council Tax Base for 2021-2022

The Cabinet approved the calculation of the Council Tax Base for 2021-2022, which was set at 87,387 Band D equivalent properties. This figure allows for a provision for uncollectable amounts of Council Tax at 2%, resulting in an expected collection rate of 98%. The Cabinet also agreed to continue with the existing Council Tax Support (CTS) scheme for 2021/22, concluding that no review or replacement was necessary at this time.

Estimated Surplus / (Deficit) on the Collection Fund 2020-2021

The Cabinet noted an overall net estimated deficit of (£29.569m) on the Collection Fund as at 31 March 2021. This includes a surplus of £7,000 on Council Tax and a deficit of (£29.576m) on Business Rates. Harrow's share of the deficit, amounting to (£8.867m), will be transferred to the General Fund in 2021-22. The deficit on Business Rates is primarily attributed to the government's decision to provide 100% retail relief, impacting the yield.

Arrangements for the Supply of Temporary Staff Services and Permanent Recruitment Services

The Cabinet authorised the Corporate Director of Resources to award a contract for temporary recruitment services to Pertemps Recruitment Partnership for three years, with an option to extend by one year. This award will be made through the Yorkshire Procurement Organisation (YPO) framework. The projected value of this contract is £92m over the four-year period. Additionally, the Cabinet approved the call-off of permanent recruitment services as an additional service for one year, with a potential one-year extension, valued at £1.3m over the four years.

Byron Hall Covid-19 Vaccination Site

The Cabinet agreed to consider an urgent item regarding the use of Byron Hall as a COVID-19 vaccination site. They resolved to note the proposed terms of the licence and authorised the Corporate Director of Community to approve the final terms and enter into the legal documentation. Furthermore, they agreed to delegate authority to the Corporate Director of Community to grant a licence for any other council sites that the NHS might request for vaccination purposes.

The meeting concluded with thanks to the staff and councillors for their work during a challenging period.