The Merton Council Cabinet met on Monday 15 January 2024, with Councillor Ross Garrod in the chair. The meeting focused heavily on the council's budget for the upcoming financial year and medium-term financial strategy, including a significant council tax increase. Other key decisions included the procurement of waste and recycling collection services, the ending of a Section 75 agreement for mental health social work, and approvals for capital projects at the Civic Centre.

Budget 2024/25 and Medium Term Financial Strategy 2024-28

The Cabinet discussed and agreed on proposals for the council's budget for 2024/25 and its Medium Term Financial Strategy (MTFS) for 2024-28. A significant increase in council tax was proposed, with a 4.99% rise planned, comprising a 2.99% core council tax increase and a 2% Adult Social Care precept. This decision was made due to rising service costs and increased demand, particularly in adult and children's social care, and the need to balance the budget. The council tax base for 2023/24 was agreed, and draft growth proposals for 2024/25 to 2027/28 were referred for consideration. An amendment to savings proposals for 2024/25 was also agreed, with the removal of saving ECPC 2425 S02. The revised MTFS gap forecast showed a balanced budget for 2024/25, but significant gaps in subsequent years. The council's Capital Strategy for 2024-28 was also presented, outlining planned investments across various strategic themes.

Financial Approvals - January

Cabinet approved adjustments to the Capital Programme for 2023-24 and 2024-25. These adjustments included virements between cost centres, reprofiling of budgets due to projected spend changes, and the relinquishing of unused budget. Notable changes included a significant increase in the budget for the Compulsory Purchase Order for Clarion CPO due to planning permission delays, and the reallocation of funds for the Family Hubs and Childcare Expansion projects. Cabinet also noted items impacting the Capital Programme, such as works at Amenity Way for the new waste collection service, the review of transportation provision for carbon neutrality, and the potential addition of local electric vehicle infrastructure funding. A variation on proposals for the AFC Wimbledon Library and Community Hub was also noted, with changes to the lease term and sponsorship arrangements.

Waste and Recycling Collections Service Procurement

The Cabinet received an update on the procurement process for the Waste and Recycling Collections Service. The Invitation to Tender (ITT) was scheduled to be published in January 2024, with a contract award anticipated by September 2024. A clarification was agreed regarding employee terms and conditions, specifying that bidders would be asked to consider providing terms broadly similar to local government conditions in areas such as pay, working hours, leave, absence, and Trade Union representation. This clarification aims to ensure fair treatment of employees transferring under TUPE regulations and to maintain a high standard of service.

Mental Health Social Work S75 Agreement

The Cabinet agreed to give notice on the current Section 75 agreement with South West London and St Georges Mental Health Trust. This decision means that social workers and support staff will return to Council service line management. The move is intended to improve the social care and social work offer to adults and families with mental health needs in Merton, addressing concerns about workload division, data collection, and the underuse of early intervention services. The termination of the agreement is expected to allow for clearer management oversight, better performance reporting, and a stronger focus on the Council's statutory duties under the Care Act 2014. The transition is planned to occur between April and October 2024, with a focus on ensuring safety and effectiveness for service users and staff.

Civic Centre – Installation services and project management of a Variable Refrigerant Flow (VRF) System, Electrical Intake and Replacement Lighting

Cabinet approved the conclusion of pre-construction negotiations for the provision of a new VRF system at the Civic Centre, along with remedial works to the electrical power network and partial lighting replacement. The preferred bidder, identified through a tender process via the Pagabo Framework, was approved. Authority was delegated to the Executive Director of Housing and Sustainable Development to award the contract following a successful value engineering exercise to bring costs within budget. The project aims to replace the aging gas boilers with a VRF system, significantly reducing carbon emissions and providing heating and cooling. The works will be undertaken in conjunction with necessary upgrades to the electrical switchgear and lighting systems. The scheme is part-funded by a £3.1 million government grant, with a condition that £1.1 million of the scheme must be spent by March 2024.

St Marks Road Car Park, Mitcham

The report concerning St Marks Road Car Park in Mitcham was noted and discussed, with recommendations approved as outlined in the exempt minutes.