The Harrow Business Consultative Panel met on Tuesday 23 January 2024 to discuss the draft revenue budget for 2024/25 and the medium-term financial strategy to 2026/27. The panel noted the report on the draft budget and financial strategy.

Draft Revenue Budget 2024/25 and Draft Medium Term Financial Strategy to 2026/27

The panel received a report detailing the Council's proposed draft revenue budget for 2024/25 and the medium-term financial strategy (MTFS) up to 2026/27. Councillor Norman Stevenson, Portfolio Holder for Business, Employment & Property, declared a non-pecuniary interest as a director of a company employing staff within Harrow, but remained for the discussion.

The report highlighted that Harrow Council continues to be one of the lowest-funded councils in London and nationally, with limited reserves. Over the past decade, the council's revenue support grant has significantly decreased, and while other grants are received, they are ring-fenced and cannot be used for the core budget. The council also faces unfunded pressures from demographic growth and inflation. Consequently, the council is heavily reliant on Council Tax, which funded approximately 78% of its net revenue budget in 2023/24.

The draft budget proposes a Council Tax increase of 4.99% for 2024/25, followed by 2.99% for 2025/26 and 2026/27. The report also detailed proposed savings and growth across various directorates, with significant growth allocated to adult social care.

During the discussion, members inquired about the business rates newsletter, its content, and distribution. Officers explained that the newsletter covers relief measures and rate multipliers and is sent to the top 200 business traders as part of the communication strategy.

Members also raised questions regarding specific relief for new tech startups in Harrow and the factors influencing this. Officers clarified that there is no specific relief for new tech startups unless a designated special zone exists, as business rates are determined by central government. Current trends in Harrow show smaller tech businesses operating from home rather than offices.

The panel also asked about future plans to attract tech entrepreneurs and startups to Harrow. Officers stated that while the desire might exist, attracting tech entrepreneurs and startups is not within the local authority's remit concerning business rates, and they do not have direct control or influence in this area.

The members thanked the officers for their work on the report. The panel resolved to note the report.