The Hillingdon Council Cabinet met on Thursday, 27 September 2018, to discuss a range of financial and operational matters. Key decisions included approving deficit budgets for two schools, agreeing to a new Section 75 agreement for mental health services, and ratifying a lease arrangement for playing fields. The Cabinet also reviewed the council's budget monitoring report and approved recommendations for various financial and capital programmes.

Transport for London Local Implementation Plan 3 and 2019-20 Annual Spending Submission

The Cabinet approved the submission of the Transport for London Local Implementation Plan 3 and the 2019-20 Annual Spending Submission. Councillor Keith Burrows, Chair of the Registration & Appeals Committee, explained that this annual submission is a requirement under the Greater London Authority Act and outlines how the council will meet the Mayor of London's transport strategy, which focuses on transforming London's streets and improving public transport. The plan covers areas such as healthy streets, healthy people, a good public transport experience, and supporting new homes and jobs. Hillingdon has historically performed well in these submissions.

Licensed Deficit Budgets for Schools

The Cabinet agreed to approve deficit budgets for two schools in the borough for the 2018-19 financial year. Holy Trinity Church of England Primary School requested a deficit budget of £54,000. Despite being oversubscribed, it is one of the lowest-funded schools in Hillingdon, facing increasing costs with limited funding increases. The school has already implemented cost reductions, including reducing its senior leadership team. Oakwood School, formerly Abbotsfield School, requested a deficit budget of £2.656 million for 2018-19, with a cumulative deficit of £3.756 million from the previous year. While Oakwood is now a co-educational school with increasing pupil numbers, it will take time for this to address the deficit due to how funding is allocated.

Mental Health Section 75 Agreement

A draft Section 75 agreement between Hillingdon Council and Central and Northwest London NHS Foundation Trust (CNWL) was approved. Councillor Philip Corthorne MCIPD, Mayor of Hillingdon, moved the report, explaining that the agreement updates existing arrangements from 2012 and aims to improve integrated working and outcomes for individuals with mental health conditions. The goal is to increase the number of people living independently, managing their own care with direct payments and personal budgets, and securing employment. This agreement, valued at £185,000 per annum over five years (£925,000 total), will fund staff employed by CNWL to deliver mental health services, aligning with the council's health and social care integration strategy.

Council Budget 2018-19: Month 4 Budget Monitoring Report

The Cabinet reviewed the Council Budget 2018-19 Revenue and Capital Month 4 Budget Monitoring Report. Councillor Jonathan Bianco, Deputy Leader of the Council & Cabinet Member for Corporate Services & Property, presented the report, noting a slight adverse movement of £47,000 but confirming the council remained underspent against expectations at this early stage of the year. The report included 14 recommendations, many of which were to note decisions taken during the summer recess.

Key points from the report and recommendations included:

• Treasury Management: The report highlighted a meagre return of 0.49% on investments compared to the 3.4% paid on debt.
• Delegated Authority: Continued delegated authority until October 2018 for consultancy and assignments over £50,000, approved by the Leader and Chief Executive.
• GLA Pension Deficit: Agreement to enter into a legal agreement to fund Hillingdon's share of the historic Greater London Council (GLC) pension deficit from the existing £347,000 per annum London Pensions Fund levy budget. This is a realignment of costs following the abolition of the GLC.
• Local Housing Rental Rates: Adoption of the Department for Works and Pensions local housing rental rates for Section 17 short-term accommodation for families. This allows the council to charge appropriate rents for larger rented properties and draw down appropriate funding from housing benefit.
• Fixed Penalty Notice Charges: Approval of revised fixed penalty notice charges for environmental offences, including littering, graffiti, fly-posting, and unauthorised distribution of free printed matter. Hillingdon's fines for anti-social behaviour are set at 110% of neighbouring boroughs' charges.
• Grassy Meadows Extra Care Development: Approval to charge an affordable rent of £221.30 per week for 2018-19 at the Grassy Meadows Extra Care Development, including meals and service charges. An additional £30 per week will be charged for each additional tenant.
• Hillingdon Autistic Care and Support Site: Allocation of £78,000 from the Environmental and Recreation Initiative Reserve for the replacement of the soft play area and support for the Saturday Club at the Hillingdon Autistic Care and Support Site.
• Transport for London and GLA Awards: Acceptance of an award of £600,000 from Transport for London for the Bus Priority Programme and £50,000 from the Greater London Authority for the RICIP High Street Empty Shops into Civic Assets Project feasibility study. Councillor Douglas Mills expressed concern that the GLA's approach to town centre support was becoming more bureaucratic and less helpful for outer London boroughs.
• Guru Nanak Sikh College Lease: Ratification of a decision to agree a lease arrangement for the playing fields at Guru Nanak Sikh College, including surrendering the current lease and authorising a new 125-year lease with conditions regarding events.
• Christmas Lights: Authorisation for the Christmas lights across the borough for a two-year period with a further one-year option.
• London Business Rate Pilot Pool: Formal approval of the allocation of the strategic investment pot for 2018-19 from the London business rate pilot pool to individual projects in west London.
• Mayor of London's Draft London Plan: Allocation of £100,000 from the development risk contingency to promote and defend the council's response to the Mayor of London's draft London Plan. Councillor Douglas Mills and Councillor Peter Curling, Leader of Hayes Independent Group, voiced strong objections to the proposed housing densities and the perceived limitations on public examination of the plan. They noted that local MPs also shared concerns about the proposed housing density.

The report indicated that at the end of month four, the council was projecting an underspend of £64,000 for the year, with £405,000 in uncommitted general contingency. The savings target for the year was £10.6 million, with £8.6 million banked or on track, leaving £2 million at higher risk or in early stages of delivery. A surplus of £1,166,000 was reported on the collection fund for council tax and business rates. However, the dedicated schools fund showed an overspend of £1.927 million, contributing to a cumulative deficit of over £6 million.

School Capital Programme Update

Councillor Jonathan Bianco presented a periodic update on the School Capital Programme, highlighting continuing progress on a significant investment programme totalling over £260 million, with £72 million ongoing. He moved five recommendations, with a minor amendment noted on the addendum sheet. The programme showed a slight underspend, which was considered insignificant in the overall context.

Planning Obligations Quality Financial Monitoring Report

Councillor Keith Burrows, Chair of the Registration & Appeals Committee, provided the quarterly report on Section 106 and Section 278 agreements. The council held £14.2 million in planning obligations, with £4.3 million allocated to projects, £3.7 million currently unspendable, and £6.1 million spendable but unallocated. The council received an additional £570,000 in income in the first quarter, of which £145,000 had been spent. The report noted that most of these funds were typically allocated to education projects. The Cabinet was asked to note the updated financial information.