The Council Assembly of Southwark Council met on Wednesday 21 February 2024 to approve the council's budget for 2024-25 and set the council tax. Key decisions included the approval of the final balanced budget, the allocation of additional government funding, and the refreshed capital and treasury management strategies.

Policy and Resources Strategy: 2024-25 Budget and Medium Term Financial Strategy

The Council Assembly approved the final balanced budget for 2024-25, which included the allocation of additional funding from the local government finance settlement. This funding comprises £0.072m in additional Services Grant and £3.272m in additional ring-fenced Social Care grant. An expected £0.970m from the National Non-Domestic Rates (NNDR) levy release was also allocated. The council also noted the requirement to develop a productivity plan by July 2024, as stipulated in the Final Local Government Finance Settlement.

Four amendments were proposed to the budget strategy:

• Amendment A – Helping women feel safe in Southwark: This amendment proposed allocating £250,000 from the Southwark 2030 Reserve Fund to implement recommendations from environmental visual audits in five identified priority areas: Burgess Park, Canada Water, Elephant and Castle, Rye Lane, and Tooley Street. It also highlighted the council's commitment to ending misogyny and harassment, investments in CCTV and LED lighting, and the establishment of a Women's Safety Centre and a network of safe havens. This amendment was carried.
• Amendment B – Putting Southwark's People First: This amendment sought to extend support to those receiving council tax reductions with a one-off fund of £2.75m, providing a £150 reduction for working-age residents. It also proposed reversing a planned £2m reduction in Adult Social Care spending, creating a 'Southwark Voluntary Fund' with an initial council investment of £5,000, and funding these through income-generating policies such as utilising the commercial estate, a voluntary tourist contribution scheme, increased filming permit fees, and higher administration fees for planning applications and CIL. The amendment also suggested cuts to council spending, including slashing catering budgets, reducing the cabinet size, scrapping deputy cabinet posts, reducing the Mayor's budget, and ceasing the production of Southwark Life magazine. This amendment was lost.
• Amendment C – A Better Service for Residents: This amendment proposed piloting a return to one stop shop satellite offices, reversing the decision to reduce library services, and reallocating existing staff and corporate capacity building reserves. It also suggested drawing £1 million from Southwark 2030 reserves for a resident service development fund and reviewing apprenticeship training provisions. This amendment was lost.
• Amendment D – A Greener Southwark: This amendment proposed releasing £13.3 million from the climate emergency capital fund for a retrofitting grant for low-income, non-HRA households. It also sought to create a new Climate Emergency Community Fund of £5 million, funded by reallocating capital and reserve pots, including the closure of Stoney Street to vehicular traffic and reductions in Technology and Digital Service and Corporate Facilities Management budgets. A ring-fenced £1 million was proposed for community-directed cycling and pedestrian projects. The amendment also called on the government to implement a national retrofitting strategy and expressed regret for not taking up a decarbonisation grant. This amendment was lost.

Following the debate and votes on the amendments, the substantive motion for the budget was put to a recorded vote and carried with 48 votes in favour, 0 against, and 9 abstentions.

Setting the Council Tax 2024-25

The Council Assembly resolved to set the Southwark element of the council tax for band D properties at £1,321.58 for 2024-25. This includes a 2.99% increase, comprising a 2% increase for the adult social care precept and a 2.99% local increase. The Greater London Authority (GLA) proposed precept level of £471.40 for band D was also noted. A council tax setting committee was established to meet on 23 February 2024 to finalise the total council tax notices.

Capital Strategy and Treasury Management Strategy 2024-25

The Council Assembly approved the Treasury Management Strategy and Capital Strategy for 2024-25, along with their appendices. These strategies outline the council's approach to managing its debt, capital expenditure, and investments, with a focus on prudent financial management, risk mitigation, and alignment with the council's strategic priorities, including climate change objectives. The strategies also detail investment limits, credit standards, and the use of Green Bonds (Community Municipal Investments) as a borrowing option.

The approved strategies include:

• Appendix A: Capital Strategy 2024-25 to 2033-34
• Appendix B: Treasury Management Strategy 2024-25
• Appendix C: Annual Investment Management Strategy 2024-25
• Appendix D: Annual Minimum Revenue Provision Statement 2024-25
• Appendix E: Prudential Indicators 2024-25 to 2026-27

The report also detailed the council's capital programme, with a total estimated expenditure of £505m for the General Fund and £1.74bn for the Housing Investment Programme (HIP) over the ten-year period to 2033-34. The strategies emphasize the council's commitment to prudent borrowing, with external debt expected to remain below the Capital Financing Requirement (CFR). The report also highlighted the council's intention to integrate Environmental, Social, and Governance (ESG) considerations into its investment decision-making.