The Corporate and Resources Committee met on Tuesday 20 February 2024 to discuss the council's financial performance, future budget, and significant capital projects. Key decisions included approving a capital budget for the refurbishment and expansion of the Main Guildhall, recommending the 2024/25 budget and Council Tax proposals to the full council, and noting the revenue and capital budget monitoring for the current financial year.

Revenue and Capital Budget Monitoring 2023/24

The committee received an update on the council's financial position as of month 9 of the 2023/24 financial year. The report highlighted the impact of high inflation on both revenue and capital expenditure. The General Fund revenue outturn was forecast to be an overspend of £3.017 million against a budget of £161.296 million. This overspend was primarily attributed to demand pressures in adult and children's social care, and temporary accommodation, exacerbated by economic conditions. Mitigation measures included higher-than-budgeted income from interest on cash balances and the release of bad debt provisions.

Planned savings of £8.504 million were reviewed, with £6.109 million rated as Green (on track), £2.060 million as Amber (delayed or partially delivered), and £0.335 million as Red (no longer deliverable). The council's general fund balance was expected to be maintained at £19.633 million.

Within the Housing Revenue Account (HRA), a forecast underspend of £0.060 million was reported. However, the Schools Budget was forecasting an overspend of £5.624 million, largely due to pressures in high needs education. This was expected to increase the accumulated deficit on the Dedicated Schools Grant (DSG) Adjustment Account to £5.537 million. The council was working with the Department for Education regarding this position and had committed £2.4 million in general funding to support SEND services.

The General Fund capital programme had a forecast in-year underspend of £11.608 million, and the HRA capital programme had a forecast underspend of £4.353 million. However, the total capital programme forecast indicated an overspend of £3.930 million over the four-year period from 2023 to 2027.

The committee RESOLVED to:

• Note the forecast outturn position for the General Fund, Housing Revenue Account, Schools Budget, and the capital programme for 2023/24.
• Approve a capital expenditure budget of £1.440 million for Main Guildhall Refurbishment, subject to the approval of proposals for the Main Guildhall/Future Workplace Programme.
• Approve a capital expenditure budget of £3.312 million for 2023-24 to acquire an additional 104 social homes through the regeneration of the Cambridge Road Estate (CRE).

Medium Term Financial Strategy 2024-2028 & Detailed Budget 2024/25

The committee considered the proposed budget for 2024/25 to 2027/28, which aimed to set out a balanced budget for the council. The report highlighted that the final Local Government Finance Settlement confirmed additional sums for social care grants and a one-off share of the Business Rates Levy Surplus. The proposed budget growth for 2024/25 was £15.648 million, with proposed savings totalling £7.989 million in the same year.

Key recommendations included approving the capital strategy, treasury strategy, HRA budget, pay policy, and the schools budget for 2024-25. The committee also recommended approving proposals to increase the Council Tax charge for second homes by 100% from April 2025 and to reduce the period before a qualifying dwelling attracts a Council Tax premium from two years to one year, effective from April 2024.

Councillor James Giles declared an Other Registrable Interest regarding recommendation 9 (Medium Term Financial Strategy 2024-28 and Detailed Budget 2024/25) as a leaseholder of the council and stated he would not be voting on that specific recommendation.

The committee RESOLVED to recommend to Council the approval of the budget proposals and Council Tax for 2024/25, along with various other financial strategies and policies.

Guildhall Redevelopment/Future Workplace Programme

The committee reviewed a report detailing the options assessment for the Guildhall Campus and the Future Workplace Programme. The report proposed progressing with detailed proposals to expand and refurbish Main Guildhall as the council's main operational base. This option was selected after a comprehensive assessment of seven alternatives, balancing quantitative and qualitative factors. The recommended option aims to reduce the council's corporate footprint, improve service delivery spaces, create a more efficient working model, and support the council's climate sustainability targets.

The proposed capital budget of £1.440 million was sought to undertake engagement and design work required to develop the Full Business Case (FBC). The committee also resolved to approve the procurement of a multi-disciplinary design team and to delegate authority for the disposal of Guildhall 1.

Councillor Andreas Kirsch, Leader of the Council, addressed a public question regarding the costs incurred in investigating the potential sale of the Guildhall as a luxury hotel, stating that a feasibility study had been undertaken under the previous administration, costing £33,500, but no formal decision had been made. He reiterated the current administration's commitment to retaining and refurbishing the Main Guildhall as the Civic Centre.

The committee RESOLVED to:

• Approve Option 2 (relocation of functions from Guildhall 2 into a refurbished Main Guildhall with provision of a new build extension) as the council's recommended relocation strategy.
• Procure a multi-disciplinary design team and grant authority to the Executive Director of Place, in consultation with relevant Portfolio Holders, to award the appointment.
• Approve a capital budget of £1.440 million for engagement and design work to develop the FBC.
• Progress with clearing Sessions House and leasing it to a third party to generate income.
• Progress with decommissioning Guildhall 1.
• Delegate authority to the Executive Director Place, in consultation with the Portfolio Holder for Assets, Commissioning and Waste, to agree the terms of the disposal of Guildhall 1.

Calendar of Meetings 2024/25

The committee received the proposed timetable of meetings for the 2024/25 Municipal Year. Amendments noted at the meeting included adjustments to the Council meeting in July 2024 and the Kingston and North Kingston Neighbourhood meeting in October 2024.

The committee RECOMMENDED to COUNCIL that the timetable of meetings for the 2024/25 Municipal Year be approved, and that the Corporate Head of Democratic and Electoral Services, in consultation with relevant Committee Chairs, be authorised to make any necessary amendments.