The Cabinet of Hounslow Council met on Tuesday 20 February 2024, where they discussed and approved the budget for the upcoming financial year, including a 4.99% increase in council tax. The meeting also saw the approval of significant funding allocations from the Community Infrastructure Levy (CIL) and Section 106 funds, as well as a review of the council's financial performance for the third quarter of the 2023-24 financial year.

Budget 2024-25

The Cabinet approved the budget for the 2024-25 financial year, which includes a 4.99% increase in the council's portion of the Council Tax. This increase is comprised of a 2% Adult Social Care precept and a 2.99% general increase. The approved budget also incorporates savings proposals, a revised fees and charges schedule, and the Housing Revenue Account budget for the upcoming year. The capital programme for 2024-25 to 2027-28 was also agreed, alongside the Capital Strategy and the Treasury Management Strategy for 2024-25.

Key decisions made regarding the budget include:

• The Council Tax Requirement for 2024/25 was set at £137,830,000.
• The basic amount of Council Tax for 2024/25 was calculated at £1,519.61 for a Band D property.
• The total Council Tax for a Band D property, including the Greater London Authority (GLA) precept, will be £1,991.01.
• An Empty Homes Premium of 100% will be applied to properties unoccupied and substantially unfurnished for one to two years from 1 April 2024.
• A Second Homes Premium of 100% will be introduced for properties that are unoccupied and furnished from 1 April 2025.
• The Council Tax Reduction Scheme for 2024/25 will remain unchanged, with benefit rates uprated in line with government regulations.

The Cabinet also agreed to delegate authority to the Executive Director of Finance and Resources for various operational activities related to cash flow management, including amendments to borrowing and investment limits, and borrowing as per approved requirements. A mid-year report and an outturn report on the implementation of the Treasury Management Strategy will be provided to the Borough Council, with quarterly updates on treasury management performance for Cabinet. The Annual Procurement Plan was also approved.

Furthermore, the Cabinet agreed to the re-alignment of earmarked reserves in 2023/24, including contributions to Unallocated General Balances and the Business Rates Volatility risk reserve, and drawings from the Capital Financing risk reserve. Decisions relating to the implementation of reserve movements to fund the 2024/25 budget were delegated to the Executive Director of Finance and Resources. The basis for allocating schools funding from the Dedicated School Grant (DSG) for 2024/25, including the principles of the local schools 5 to 16 funding formula, was also agreed.

Allocation and Reporting on Community Infrastructure Levy (CIL) and S106 Fund

The Cabinet approved the allocation of £3,252,943.00 in Strategic Community Infrastructure Levy (CIL) funds to various strategic projects. Additionally, £4,742,017.38 in Section 106 funds was allocated to specific projects. Council-delivered projects funded by CIL and/or Section 106 will be added to the general fund capital programme. The Infrastructure Funding Statement 2022/23, detailing CIL and S106 funds, was approved for publication. Authority was delegated to the Executive Director of Regeneration, Housing and Environmental Services, in consultation with relevant Cabinet Members, to review and implement new processes for future CIL and S106 funding allocations.

Financial Monitoring Update 2023-24 Q3

The Cabinet reviewed the council's financial performance for the third quarter of the 2023-24 financial year. The report indicated a forecast General Fund revenue budget overspend of £3.9m. However, the Dedicated Schools Grant (DSG) position showed an underspend of £0.3m against a budgeted deficit. The Housing Revenue Account (HRA) budget reported a net nil variance, with a forecast drawing on HRA balances of £3.4m. Variances were also noted in the capital programme forecasts for both the General Fund and HRA.

Key approvals made during this agenda item include:

• An allocation of £1,630k from the corporate inflation provision budget to directorate budgets.
• The entering into of a new Environmental Enforcement contract, with authority delegated to the Assistant Chief Executive to finalise contract documents and a Memorandum of Understanding with the London Boroughs of Ealing and Harrow.
• An allocation and drawdown of £1.9m from the Savings & Implementation strategic investment earmarked reserve to address pressures within the Special Education Needs & Disabilities (SEND) Teams for 2023/24.
• The reprofiling of the Unallocated Contingency budget within the 2024 HRA Business Plan across 2023/24, 2024/25, and 2025/26.
• An allocation of £16.2m to fund the projected additional costs of delivering four infill schemes in the Council House Building programme for the period 2023/24 to 2025/26, to be funded from the Unallocated Contingency budget.
• An allocation of £2.0m to fund the completion of Condition Survey works to the supported housing stock within the Housing Revenue Account.

Delivery Plan Monitoring 2023-24 Q3

Cabinet noted the progress made on programmes and projects across the People, Place, Capital, and Digital Portfolios as detailed in the respective appendices of the submitted report.

Admission Arrangements for London Borough of Hounslow Community Schools for 2025-2026

The Cabinet agreed and adopted the Admission Arrangements for Community Schools for the 2025-2026 academic year. Councillor Lily Bath, Cabinet Member for Education, Children, Skills and Employment, noted that these arrangements largely mirrored those of neighbouring boroughs.

Any Referrals from Other Council Committees

No referrals were received from other council committees.

The meeting concluded with the exclusion of the press and public to discuss exempt information, including the exempt appendix related to the Financial Monitoring Update. The next Cabinet meeting was scheduled for Tuesday, 18 March 2024, at 7pm.