The Cabinet of Harrow Council met on Wednesday 24 January 2024, approving significant budgets for the Housing Revenue Account (HRA) and agreeing to proceed with key regeneration projects. Decisions made included approving the HRA budget for 2024-25, a capital programme running until 2028-29, and a 30-year HRA business plan, alongside authorising spending on the Byron Quarter and Poets Corner regeneration schemes.

Housing Revenue Account Budget and Medium-Term Financial Strategy

The Cabinet approved the Housing Revenue Account (HRA) budgets for 2024-25, along with the Medium-Term Financial Strategy (MTFS) for 2025-26 to 2026-27. This includes an average weekly rent increase of 7.7% for general needs and sheltered accommodation, aligning with national policy for social housing. Rents for affordable properties and shared ownership properties will also see a 7.7% increase.

A five-year HRA Capital Programme totalling £186,243,545 was approved. This programme includes £77,715,124 for planned investment, £38,714,883 for the Building Council Homes for Londoners initiative, £75,000 for Grange Farm Infrastructure, and £69,738,538 for Homes for Harrow Phase 2 . The 30-year HRA Business Plan and its underlying assumptions were also approved.

Service charges for general needs and sheltered accommodation were approved, reflecting inflation and a new cleaning service level. Charges for affordable and shared ownership properties were also agreed. Additionally, facility charges for sheltered properties, enhanced management charges for sheltered properties, heating charges for general needs tenanted properties, water charges (a 7% increase), and charges for parking spaces and garages were approved. A 7% increase was also approved for hourly hire charges for Community Halls. A provision was made to allow the HRA to enter into an acquisition programme to maximise the use of 1-4-1 capital receipts should the Homes for Harrow Phase 2 project be delayed.

Harrow Strategic Development Partnership (HSDP)

The Cabinet approved the overarching Business Plan for the Harrow Strategic Development Partnership (HSDP) and phase business plans for Poets Corner (Phase 1) and Byron Quarter (Phase 1). This approval authorises spending of up to £1.54 million on the Byron Quarter (Phase 1) Phase Business Plan and £2.24 million on the Poets Corner (Phase 1) Phase Business Plan over the next 12 months, with the council liable for 50% of these costs.

Authority was delegated to the Corporate Director of Place, in consultation with relevant portfolio holders, to enter into contract documents and take necessary actions for the delivery of these plans. The Corporate Director of Place, in consultation with the Deputy Leader and Portfolio Holder for Planning and Regeneration, was also authorised to determine the satisfaction of planning gateways for Poets Corner (Phase 1). The Director of Finance and Assurance, in consultation with the Portfolio Holder for Finance and Human Resources, was authorised to approve and enter into financial agreements for the HSDP.

Furthermore, the Corporate Director of Place, in consultation with the Leader of the Council, was authorised to agree to the submission of planning applications for Poets Corner, Byron Quarter, Grange Farm, and Milton Road. The next stage approach for Grange Farm (Phases 2 & 3) was approved, with authority delegated to the Corporate Director of Place to take necessary decisions and enter into agreements for its delivery. Progress on the Milton Road project was also noted. Any amendments required to the 2024/25 Treasury Management Strategy will be referred to the Council. The Director of Legal and Governance Services, in consultation with the Leader of the Council, was authorised to take necessary actions to ensure the Council's participation in the HSDP complies with applicable state subsidy laws. Finally, it was noted that the Council's main offices would remain at Forward Drive for the foreseeable future.

Managing Potholes within the Borough

The Cabinet noted the feasibility work undertaken to identify suitable options for managing highway defects, including potholes, on a proactive, responsive, and area-wide basis through a find and fix service provided by the Council's highways works term service provider, JB Riney. It was noted that two tranches of government highways maintenance funding, totalling £482,000 for 2023/24 and 2024/25, would be used to fund highway maintenance, including this new pothole management programme. The Cabinet also noted the agreed option for JB Riney to provide a 'find and fix' service, including a dedicated 'Pothole Squad', to proactively identify and permanently fix potholes using innovative techniques and sustainable highway products.

Strategic Performance Report Q2 2023-24

The Cabinet noted the Strategic Performance Report for Quarter 2 2023-24, which summarises Council and service performance against key measures and highlights areas requiring action. Portfolio Holders were encouraged to continue working with officers to achieve improvements against identified key challenges.

Calculation of Business Rates Tax Base for 2024-2025

The Cabinet agreed to the approach and assumptions for the calculation of the Council's business rates yield for 2024-2025, which amounts to £13.221 million to be retained by Harrow. This calculation is in accordance with the Non-Domestic Rating (Rates Retention) Regulations 2013. The Council's Chief Finance Officer was authorised to submit the notification of this calculation to the Secretary of State and the Greater London Authority (GLA), and to implement announced Autumn Budget business rates measures, including potential new or adjusted reliefs. The policies set out in Appendices 1 and 2 regarding these reliefs were also agreed.

Fees and Charges 2024/25

The Cabinet agreed to the implementation of the proposed Fees and Charges for 2024/25, with the exception of those marked as 'Statutory prescribed' or 'for noting only – non-Cabinet approval'. Authority was delegated to the Director of Finance and Assurance to amend fees and charges in-year and agree new ones following consultation with relevant Corporate Directors and approval from relevant Portfolio Holders.

Procurement of a Software Licence, Support and Maintenance for Revenue and Benefits Software Applications

The Cabinet approved the procurement of a service contract for a software licence, support, and maintenance for the Council's revenue and benefits software applications. The contract was authorised to be awarded to NEC Software Solutions UK Limited for a period of 5 years, commencing on 01/04/2024, with a total value of £787,000, including options to extend. This decision was deemed critical for income collection, as not procuring an external partner would limit the Council's ability to collect approximately £260 million annually in Council Tax, Business Rates, Benefits, and Housing Benefit overpayments.

Timetable for the Development of the Council's Policy Framework

The Cabinet approved the timetable for the preparation and consideration of the plans and strategies that comprise the Council's Policy Framework. The Monitoring Officer was authorised to vary this timetable if deemed appropriate. This decision ensures compliance with the Council's Constitution regarding the Budget and Policy Framework Procedure Rules.