This meeting of the Overview and Scrutiny committee will include discussions on the Housing Revenue Account (HRA) budget and the implications for the council tax and the Medium Term Financial Strategy (MTFS) of Royal Borough of Greenwich. The committee will also be presented with an update on the Forward Plan, which outlines upcoming key decisions and provides opportunities for scrutiny.

Housing Revenue Account

The most significant topic scheduled to be discussed at the meeting is the Housing Revenue Account ¹ (HRA) budget and rent setting for 2025/26. This report pack included for discussion contains proposals for a rent increase of 2.7%, the maximum allowed by the government. The report pack explains that even with the proposed increase the HRA will remain under significant pressure until the early 2030s, due to more than a decade of challenging financial conditions and restricted rent rises, as well as the increased demands to address issues like fire safety and damp and mould.

The report pack also includes for discussion details of a number of Project Initiation Documents (PIDs) ². They include details of PIDs to increase garage income, change the capital programme and convert void properties to temporary accommodation. It also includes for discussion proposals to extend existing policies for re-letting properties at formula rent plus 5% ³ and aligning temporary accommodation (TA) rents to the Local Housing Allowance ⁴ (LHA). The report pack explains that the council is reviewing the funding of the two tenant management organisations (TMOs) ⁵ in the borough, Walpole and River Heights, noting that the staffing budget for Walpole, appears to be over-resourced in regards staffing levels, with a budget of £226,830 for five staff members and only 87 homes.

The report pack contains a proposal for a budget of £200,000 for the Hardship Fund in 2025/26. It notes that since it was set up in 2023/24 it, had helped 433 residents, and that, 61% of residents who received two hardship fund payments maintained full rent and arrears payments.

The report pack also explains that the council is working with central government to advocate for changes that would benefit tenants, in particular, moving to a consistent treatment of HRA debt, providing more funding for building safety remediation and allowing us to gradually increase our rents towards formula rent.

Medium Term Financial Strategy

The report pack also includes information for discussion of the Medium Term Financial Strategy (MTFS) ⁶ for 2025/26. The report pack explains that the Provisional Local Government Finance Settlement was published on 18 December 2024 and set out funding for local authorities. The government has allocated a Core Spending Power ⁷ (CSP) to Greenwich, which includes Settlement Funding Assessment, Council Tax, New Homes Bonus and Specific Grants. The report pack details that Greenwich has been allocated a CSP of £342.8m, a notional increase in resources of £19.6m. It explains that the government’s assumption that local authorities will raise council tax by the maximum level (2.99%) and adult social care by the same (2%) represents an increasing shift of income generation directly from local residents, reducing central government funding to local government.

The report pack includes details of a number of funding grants, including confirmation that the 2024/25 Social Care Grant will be increased by £880m nationally, of which Greenwich’s share will be £5.8m. It explains that there was no additional funding provided to the Adult Social Care Market Sustainability and Improvement Fund, however Greenwich’s grant remains at the 2024/25 level of £5.8m. The report pack also details a new grant, the Children’s Social Care Prevention Grant, which will be worth £250m nationally, of which Greenwich’s provisional allocation will be £1.656m.

The report pack explains that the council has been allocated £5.22m of funding for the Extended Producer Responsibility for Packaging (pEPR) scheme, and that while there are ostensibly no significant new burdens to local authorities in respect of this funding, the full payment from the scheme will be contingent on satisfactory performance relative to statistically-similar authorities. It explains that £3m of this grant will be used to support the MTFS, and that the remaining £2.2m will be held for investment by services and to underwrite potential overspends.

The report pack contains details of a proposal to provide for £43.4m of investment, including £20m for Health and Adults Services, £11m for Childrens Services, £1m for Universal Credit migration pressure and £200k to provide a further Emotional Wellbeing Hub at Leigh Stationers' Academy. The report pack explains that £9.9m of the £11m allocated to Children's Services is to meet the cost of an increasing number of high-cost placements. It explains that across the sector, demand for placements for children and young people with complex needs has been increasing, coupled with a failing market with excessively high costs for provision, citing the example of providing secure accommodation for one young person that, can be in the region of £20k per week. £11m is allocated to Health and Adult Services to meet the increased demand and cost within Adult Social Care, which it explains is, driven by an aging population with ever more complex needs and a care market that is struggling with staffing.

The report pack also contains proposals for a number of new savings proposals, which the council estimates would save £3.9m in 2025/26. The report pack includes for discussion a proposal to try to cover the cost of council events such as Sparkle in the Park and the Together festival by seeking alternative funding from contractors, local businesses and other interested parties. It notes that the events are, “much-loved by residents, with 25,773 attending the latest Sparkle event”. It also includes a proposal to adapt library opening times to match demand. It explains that while Greenwich has one of the highest number of libraries in any London borough, not all libraries are well attended and, it is necessary to review the current demand for library services. It also includes proposals to invest in parks and transform children’s and youth play facilities. The first part of this proposal is to review the existing adventure play centre provision with an aim to, provide a wider and more accessible offer. The second part includes for discussion proposals for the decommissioning of the Maryon Wilson Animal Park and the rehoming of the 93 animals at the park. It explains that, “following a similar approach to that taken in 2011”, the council will give the community a window to prepare and submit a business case to operate the park independently from the council.

The report pack explains that the council's sustainable streets programme aims to reduce car journeys and encourage more people to walk, cycle or use public transport, with the proposal containing plans to implement an additional five sustainable streets schemes, including controlled parking zones, in 2025/26. It notes that, sustainable streets programmes generate income through the implementation of controlled parking zones (CPZs). It also contains for discussion proposals for Beresford Square Market to operate on a full cost recovery basis from 2026/27, which the report pack says will be achieved through an increase to the cost of pitches, storage and parking fees.

The report pack also includes for discussion a proposal for changes to be made to the Local Council Tax Support (LCTS) scheme, to compensate for the reduction in support. It explains that Greenwich currently offers 100% support to those on the scheme, which, “supports just under 15,000 low income working age households”. The report pack contains details of a proposal to establish a discretionary council tax hardship fund for residents who are in receipt of council tax support and, still in financial difficulty.

The report pack explains that the budget gap for 2025/26, after taking account of all of the above, will be £6.3m. It details that this gap could be closed by raising council tax by 4.99% which would be, an increase of 139 pence per week at Band D. The report pack also notes that there is an overall resourcing gap for 2026/27 in excess of £40m, rising to almost £100m by 2028/29. It explains that, “the two largest risks in the councils Strategic Risk Register are the MTFS and the Net Zero Climate ambition”

Forward Plan

Finally, the report pack includes an update on the Forward Plan for January 2025 to April 2025. It provides details of several key and non-key decisions to be taken by the Leader of the Council, the Cabinet, individual Cabinet Members and Chief Officers. The report pack asks the committee to determine which of these items should be subject to further scrutiny. For example, the report pack includes information for discussion of a proposal to write off rent arrears as bad debt at 8 Thistlebrook Industrial Estate. The report pack explains that the council will be seeking to procure a programme of apprenticeships, and that it will be seeking to review and amend the conditions of the HMO and Selective Licensing schemes. It also includes for discussion the proposal for the introduction of two automatic public conveniences, one in Blackheath and one in Woolwich, with the report pack noting that, the Procurement will require ‘Approval to Proceed to Tender’.

The report pack includes for discussion proposals for an increase to the fine for Fixed Penalty Notices issued for littering, “to encourage clean, tidy neighbourhoods that Greenwich residents rightly expect.” It also details a proposal to make the temporary Experimental Traffic Regulation Order ⁸ (ETRO) for 80 dockless e-bike parking bays permanent.

The report pack contains a proposal to agree a Memorandum of Understanding ⁹ (MOU) with dockless e-bike operators Lime, and a proposal for a new corporate mobile telephony contract. The report pack also includes details of a number of key decisions related to housing, including the contract award for the maintenance of passenger lifts, a contract award for the maintenance of stair lifts, the supply and installation of fire doors, the provision of fire risk assessments, the provision of multi-disciplinary consultancy services and the award of a contract to provide designs for communal heating upgrades. The report pack also details proposals for the introduction of a new financial and payment system, to replace the existing system which is due to expire in 2026 and proposals for the replacement of the existing Pension and Pension Payroll System, to provide a system that is legislatively compliant.

The report pack details that a public consultation on the council's Waste Strategy is scheduled to take place, and that a decision on the appropriation of the property at 34 Hardy Road from the HRA to the general fund in order to allow it to be used as a children’s home is to be made. The report pack explains that a decision on Section 2 of the Woolwich to Greenwich Cycle Route will also be taken.

The report pack details proposals to consider changing the School Trip Grant Scheme, and for a decision to be taken on the Thamesmead and Marsh Dykes Flood Alleviation Project. It explains that a consultation on the Planning Enforcement Plan is scheduled to take place and a proposal for a framework agreement for contractors to carry out small construction projects is to be considered.

The report pack details a proposal for a new Adult Skills Framework for the period 2025 – 2029 and a proposal for the prohibition on ice cream trading across the borough. It also contains a decision to be made on the closure of Gallions Mount Primary School, including consideration of the outcome of the Equalities Impact Assessment.

The report pack includes a decision to approve a scheme and estimate report for capital works to the Woolwich Old Library, “to repurpose the building for new affordable workspace for the town centre”. The report pack explains that the council will be seeking approval to enter into public engagement for Urban Regeneration Frameworks and for development agreements to be made between Royal Borough of Greenwich and Berkeley Homes, “for RBG to procure the delivery of affordable housing at Royal Arsenal and Kidbrooke Village”. Finally, the report pack details that a decision will be taken on whether to make all existing temporary School Streets permanent.