The Cabinet approved all of the recommendations put to them at the meeting, including the Strategic Business Case for the construction of a new six-bed short breaks unit and six-bed Children with Disability (CwD) residential home at Vicarage Farm Road. The Cabinet also approved an increase to dwelling rents of 2.7%, and noted the fourth annual update on the progress of the Climate Emergency Action Plan.

SEND Children's Home and Short Breaks Re-provision Strategic Business Case

The Cabinet considered a report from Steven Forbes, the Executive Director of Children's and Adult Services on the construction of a new six-bed short breaks unit and six-bed CwD residential home at Vicarage Farm Road.

The new short breaks unit will replace the existing Westbrook Short Breaks Unit, on New Heston Road, which according to the report requires significant refurbishment, and has been the subject of criticism from Ofsted. The report states that the new short breaks unit is not expected to lead to cashable savings.

The new CwD residential home will be the first such facility in the borough. The report estimates that the new CwD home will create an annual cashable saving of £364k from 2028/29 by avoiding external placement costs. It goes on to say:

The CwD residential home is expected to open in the latter part of 2027/28 and therefore will incur a part year disbenefit for that year…

 A resulting net £220k disbenefit in 2027/28

The report lists a number of non-financial benefits of the proposal, including an improved green by design more efficient building for the short break unit service and the colocation of the two buildings, which will optimis[e] the skill mix of various staff groups working collaboratively across two facilities in proximity within one site.

Councillor Chaudhary, in introducing the report, pointed to the high cost of placing children in care outside the borough:

Hounslow spends on average £241k per child each year for external CwD residential placements and up to £704k for High Need placements.

2025-26 Housing Revenue Account Dwelling Rents and Service Charges

The Cabinet considered a report from Modester Anucha, Director of Housing, on the proposed changes to dwelling rents and service charges to be paid by tenants of properties owned and managed by the Council.

The report proposes that dwelling rents will be increased by 2.7%, which is the September 2024 CPI plus 1%. This is the maximum allowed under the Government's rent cap policy for 2025/26, which was extended to 2026 in April 2024.

The report goes on to say that:

The capping of rent increases for 2023/24 has already permanently reduced the rental income collectable by the HRA during a period of particularly high inflation and increasing interest rates.

The report proposes that most service charges will also be increased by 4.8%, a higher proportion than the proposed rent increase, due to a projected increase in employer national insurance costs. In particular the report highlights the impact of the increase in gas prices on the Council's finances, and proposes an uplift of £8.77 per week to the District Heating gas consumption charge to ensure the costs are recovered.

A number of site-specific service charges were also proposed for developments that receive services over and above those provided on Council managed estates. These site-specific charges are levied by a managing agent, and the report highlights the recent increases to these charges, particularly at the Staging Post development and High Street Quarter:

The increased service charges at the Staging Post development and High Street Quarter are due to significant increases in communal electricity charges.

The report also proposes a number of changes to the terms available to leaseholders to pay for major works, including a new option for leaseholders who do not live at their properties to agree payment terms of up to 15 years in particular circumstances. This change to the policy is intended to address the Council's changing responsibilities under the Scheme of Financial Assistance with Major Works Bills, as it recognises that:

…in the present financial climate with mortgage and inflation increases and property price stagnation the Council is seeing examples of leaseholders moving away from their leasehold property due to adverse personal circumstances rather than as a property investment.

Climate Emergency Action Plan - Fourth Annual Update

The Cabinet noted the fourth annual update on the progress of the Climate Emergency Action Plan. The report, introduced by Councillor Dunne, set out the progress that has been made towards achieving net zero emissions from the Council's own operations by 2030, as well as the Council's actions to influence the reduction of emissions from the wider borough.

The report highlights a number of successes in reducing the Council's own carbon footprint, including:

• Delivery (over the plan period) of decarbonisation measures in 70 buildings enabling a 19% reduction in gas consumption across corporate buildings in the last year
• Installation of solar PV to generate 2,993MWh of electricity – 18% of the electricity consumption for corporate buildings (excludes social housing and street lighting)
• Replaced traditional vehicles with hybrid vehicles such that 50% of the fleet is now hybrid
• Increased the fuel (and therefore) carbon efficiency of our vehicle fleet such that for every litre of fuel used in 2023/24 1.89 miles was driven compared to 1.49 miles in 2019/20 (n.b. data to make this comparison is not available for 2018/19)

The report goes on to say:

…due to challenges with data, particularly an accurate and relevant baseline against which to track progress, measuring a % reduction in emissions is both difficult and potentially would lead to conclusions that do not reflect the progress made.

The report identifies that one target in the Climate Emergency Action Plan - to reduce the Council's emissions by 50% by 2026 - will not be met. As such the report recommends the removal of this target. The report also recommends that the target Achieve zero emissions from corporate vehicle fleet by 2030 be amended to Achieve net-zero emissions from corporate vehicle fleet by 2030. The report argues that zero emissions are not practically nor financially viable, and that it would be necessary to offset residual emissions to meet the 2030 target. It also recommends that the scope of the Council's operational emissions be changed to exclude social housing.

The report goes on to describe the Council's progress towards influencing a reduction in the emissions of the wider borough, including a range of initiatives across domestic, industrial and commercial, transport and waste emissions. Councillor Dunne, in highlighting these successes, drew attention to the recent data release on the borough's total carbon emissions:

…the recently released data on the borough’s carbon emissions, specifically the drop of 3% in recorded emissions in 2022 compared to 2021…

The report identifies the lack of funding for the necessary large scale infrastructure projects as the key challenge to achieving meaningful emissions reductions for the borough. In particular it points to the need to unlock private sector capital financing to enable the delivery of the District Heat Network and Net Zero Neighbourhoods project. The report recommends the reallocation of £150,000 from the underspent budget for the Green Innovation and Enterprise project to secure consultancy support to secure this investment.

The report also proposes the creation of a Climate Change Resilience Plan to set out the Council's plans to support the borough to adapt to climate change, and recommends the reallocation of £10,000 from the Green Innovation and Enterprise project budget to secure consultancy support for this plan.

Councillor Thompson questioned the slow progress in delivering the Council's pledge to install 2,000 Electric Vehicle charge points by 2026, saying:

…the lack of suitable charging points could have contributed to residents’ hesitation in switching to electric vehicles.

Councillor Dunne acknowledged that the rollout had been slower than expected, but insisted that the Council was on track to meet the target.

Investing in Advice Services for Hounslow's Residents

The Cabinet approved a grant of £325,000 per year from the General Fund to Citizens Advice Hounslow to continue providing social welfare advice to the borough's residents for a term of five years.

The report, presented by Councillor Grewal, summarises the achievements of the current advice service, which supports over 15,000 residents each year, saying:

It has achieved exceptional outcomes for residents, securing over £38 million in additional income for its service users over the period 2020 – 2024 (£15m in 2023/24 alone)… It has also attracted over £1.2 million in external funding to add capacity to the service.

The report notes that the cost of living crisis has led to increasing demand for advice services, and that:

Trends across local advice and other support services show growing volumes of clients seeking support, rising homelessness, financial hardship and reliance on crisis support…

The report highlights the expertise and experience of Citizens Advice Hounslow, and its ability to secure external funding to increase the impact of the Council's investment. In particular the report praises the organisation's outreach work:

It has invested in an outreach model allowing it to reach more vulnerable and isolated parts of the community. This includes outreach sessions at Community Hubs, food banks, community centres and faith centres and at Hounslow House… It has also secured funding to upskill and train frontline staff and volunteers in smaller community organisations, widening access to advice and support further.

Response to the initial stakeholder consultation on the proposal to merge Cardinal Road Infant & Nursery and Victoria Junior schools

The Cabinet agreed to proceed to the next stage in the consultation to merge Cardinal Road Infant & Nursery School and Victoria Junior School. This next stage, which will begin with the publication of Statutory Notices, will provide another opportunity for interested parties to make representations about the proposal to merge the two schools into a single primary school on split sites.

The report, presented by Councillor Chaudhary, sets out the background to the proposal, which was triggered by the resignation of the Headteacher of Cardinal Road Infant & Nursery School, and the Council's subsequent decision to trigger its Schools Amalgamation Policy.

The report describes the consultation that took place between September and November 2024, during which the LA met with parents, staff, governors and pupils from both schools to discuss the proposal. The report identifies that 79% of the responses received were in favour of the merger, and lists a number of benefits of the proposal:

•  Whole School Approach
•  Continuity of Education
•  Whole School approach to planning and assessment
•  Parents only apply once to one school for admission to Reception to Year 6
   (no reapplying for Year 3).
•  Transition of pupils between Years 2 and 3 is smoother and better for pupils
   and their families, with less chance of ‘lost learning’ at the beginning of Year
   3.

The report also recognises that a number of concerns about the proposal were raised during the consultation, including the impact on staffing and the reputation of the merged school. It also acknowledges the concerns about the split-site arrangement:

  School sites:
There are many primary schools across the country that function in more than
one building, and in Hounslow several Primary schools operate across split
sites. These schools manage successfully to operate between sites.
Therefore, this is no longer considered to be the barrier to amalgamation that
was previously argued.

The report notes that the feasibility study to address the access between the two sites is being progressed, and that it is not linked to the outcome of the consultation.

The report also addresses the financial implications of the merger, noting that mainstream school provision for pupils aged 5 to 16 is funded by the Dedicated Schools Grant. The report reminds the Cabinet that any deficit at the date of the merger must be met from the Council's general fund, and proposes that an allocation of S106 funding be made to fund the one-off costs associated with the merger.

Council Tax Base 2025-26

The Cabinet approved the Council Tax Base for 2025/26 of 92,108.8 Band D equivalent properties, which is an increase of 1,408.0 units compared to the previous year.

The report, introduced by the Leader of the Council, explains how the Council Tax base is calculated in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012:

It is calculated by adding together the “relevant amounts” (the number of Band D equivalent dwellings) for each valuation band, then multiplying the result by the Council’s estimate of its collection rate for the year and, finally, making an adjustment for payments from the Secretary of State for Defence in lieu of Council Tax for armed forces accommodation otherwise exempt from Council Tax.

The report proposes that the collection rate for 2025/26 be set at 98.5%, which is the same as 2024/25. The impact of proposed changes to the Council Tax Support scheme was not included in the calculation, but an indicative alternative calculation was set out in the report should the Cabinet decide to implement the proposed changes to the scheme.

The report identifies the lower than expected Council Tax collection in 2024/25 as a potential risk, saying:

Under-achievement of these KPIs and incentive targets could result in a deficit on the Collection Fund, which would need to be met by the council’s General Fund in the following year’s budget.

To allow the impact of the proposed changes to the Council Tax Support scheme to be considered, the report proposes that authority be delegated to the Executive Director of Finance and Resources to amend the calculation of the Council Tax Base.

The report also sets out the process for establishing the Council's expected income from National Non-Domestic Rates (NNDR). The report notes that the forecast income from NNDR is £67.6m, based on a 1.7% uplift to the standard multiplier based on September 2024 CPI. These figures, which are lower than those in the OHFS Update report, are based on the provisional local government finance settlement announced in December 2024.