The Cabinet of Southwark Council met on Tuesday 7 January 2025 to discuss a range of important issues, including the Housing Revenue Account budget, the Council Tax base for 2025-26, and the Streets for People delivery plan. A key decision made was the approval to use compulsory purchase powers to facilitate Phase 2 of the Tustin Estate regeneration project.

Tustin Estate Update and Phase 2 Compulsory Purchase Order

The Cabinet agreed to use compulsory purchase powers under Section 226(1)(a) of the Town and Country Planning Act 1990 and section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the acquisition of all land and interests not already owned by the Council within the area of land shown edged black and bold on the plan at Appendix 2. This decision is to facilitate the redevelopment, development and improvement of the land and secure the delivery of new homes on the site in line with the planning application for Phase 2, thereby securing the continued redevelopment of the Tustin Estate. The Director of Planning and Growth, in consultation with the Managing Director of Southwark Construction, was authorised to take all necessary steps to secure the making, confirmation, and implementation of the Compulsory Purchase Order (CPO). This includes land referencing, serving requisitions for information, preparing documentation, submission to the Secretary of State, publication of notices, and presenting the Council's case at a public inquiry if called. The Cabinet also agreed to delegate authority to the Director of Planning and Growth to negotiate and enter into off-plan sales agreements in Phases 1 and 2 of the new development with resident leaseholders who qualify for a new council home. Furthermore, the Cabinet resolved to approve the commencement of statutory consultation with secure tenants regarding the proposal to seek the Secretary of State's approval for the redevelopment scheme for the purpose of Ground 10A, Schedule 2 Housing Act 1985, and to agree to obtain vacant possession of Heversham House and Kentmere House pursuant to Ground 10/10A of Schedule 2 of the Housing Act 1985 in order to deliver the Scheme.

Corporate Parenting Annual Report 2023-24

The Cabinet noted the Corporate Parenting Annual Report for 2023-24, which detailed progress on the corporate parenting strategy, areas of focus for 2024-25, and the work of the Corporate Parenting Committee. It was also noted that a child-friendly, easy-read version of the report would be shared widely and made publicly available. The Cabinet agreed that the updated corporate parenting strategy would be brought back for approval in the following year, with a focus on developing proposals for high-quality spaces for children in care and care-leavers.

Housing Revenue Account - Final Rent and Charges Report 2025-26

The Cabinet approved a 2.7% rent increase for all directly and tenant-managed housing stock within the council's Housing Revenue Account, in line with the government's guideline rent formula of CPI+1%. This increase, effective from 7 April 2025, also applies to shared ownership stock. Increases to tenant service charges for estate cleaning, grounds maintenance, communal lighting, and door entry maintenance were also approved. Charges for sheltered and supported housing were also set to increase, as were garage charges. Notably, tenant heat network charges for 2025-26 were approved to be frozen at existing levels, with the exception of the borough-wide metered charge for new homes, which will reduce. The Cabinet also noted resident feedback from an engagement event held on 10 December 2024.

Council Tax Base 2025-26

The Cabinet agreed that the council tax base for 2025-26 be set at 112,357 Band D equivalent dwellings, an increase from 112,166 in 2024-25. The assumed council tax collection level for 2025-26 was agreed to be changed to 96.50% (from 97.20% in 2024-25). The council tax base for St. Mary Newington parish was set at 11,732 Band D equivalent dwellings. The continuation of the current council tax discretionary relief policy for young people leaving care and for foster carers was also agreed.

Policy and Resources: Revenue Monitoring Report 2024-25

The Cabinet noted the forecast revenue out-turn position for 2024-25, which indicated an adverse variance of £8.2m for the Housing Revenue Account (HRA) and £17.8m for the General Fund (GF). The report detailed key adverse variations and budget pressures, including demand pressures in temporary accommodation, increased costs for those with 'No Recourse to Public Funds' (NRPF), increased demand for adult care packages and children's placements, and lower than expected income for planning and growth. Mitigating actions and the use of reserves were also noted.

Policy and Resources: Capital Monitoring Report 2024-25 and Southwark 2030 Strategic Alignment

The Cabinet noted the forecast capital out-turn position for both the general fund and housing investment programmes. It was noted that the general fund capital programme has a significant borrowing requirement of £313m, and the housing investment programme has a borrowing requirement of £426m, to be fully delivered over the remaining term of the programmes. The Cabinet approved virements and variations to the general fund and housing investment capital programme, and the inclusion of new capital bids into the capital programme.

Streets for People Delivery Plan

The Cabinet approved the Streets for People overall vision and the 2025-26 delivery plan. It was noted that funding secured to date for 2025-26 would support the implementation of interventions in the first five zones. The Leader of the Council delegated authority to the Cabinet Member for Clean Air, Streets and Waste to approve revisions to the borough's traffic circulation plan.

Allocations for Strategic Community Infrastructure Levy Funding

The Cabinet agreed to allocate Strategic Community Infrastructure Levy (SCIL) funding towards several projects. This included up to £1,500,000 for the fit-out of the LGBTQ+ space at Bankside Yards, £2,373,563 towards the development of 634-636 Old Kent Road, £30,000 towards the Bakerloo Line Extension Funding Study, and £50,000 towards design work to improve accessibility at Nunhead Station.

Motions Referred from Council Assembly

The Cabinet considered several motions referred from Council Assembly. These included motions on the climate emergency and a fair transition to net zero, supporting older people this winter, rethinking winter fuel payment cuts, the 'Right to Grow' initiative, supporting the Climate and Nature Bill, and supporting renters in Southwark. The Cabinet noted the motions and agreed to take forward recommendations where appropriate, including continuing work on the climate emergency, supporting older residents with winter fuel payments, exploring the use of council-owned land for cultivation, and reviewing support for private renters.

The meeting concluded with the approval of minutes from previous meetings and the noting of various reports.