The Croydon Council Cabinet met on Wednesday 14 February 2024 to discuss a range of significant financial and operational matters. Key decisions included the approval to close Brick by Brick Croydon Ltd on a solvent basis, with delegated authority for asset and liability management and potential sale negotiations. The Cabinet also proposed a 2.99% increase in the Croydon element of the council tax for 2024-25, alongside a 2% increase for the adult social care precept, leading to an overall council tax bill increase of 5.69%.

The meeting addressed the Council's financial performance, noting a forecast underspend of £1.3m for the General Fund revenue budget at Period 8, while the Housing Revenue Account (HRA) was forecasting an overspend of £12.0m. Significant capital programmes were approved, including a £479.68m General Fund Capital Programme for 2023-29 and a £57.24m HRA Capital Programme for 2024-25, with no General Fund borrowing planned for the next two financial years. Additionally, six experimental Healthy Neighbourhoods were approved to be made permanent, with one scheme, Kemerton Road, to be removed. The Cabinet also agreed to continue the Housing Revenue Account (HRA) hardship fund to assist tenants financially impacted by the proposed 7.7% rent increase.

The Cabinet reviewed the Mayor's Business Plan 2022-2026 Performance Report, noting progress against key performance indicators across various service areas including housing, children's services, health and adult social care, communities and culture, community safety, planning and regeneration, and streets and environment. The closure of Brick by Brick Croydon Ltd was a significant decision, with the Cabinet approving its solvent wind-down and delegating authority for asset and liability management and potential sale negotiations. The Budget 2024-25 and Medium Term Financial Strategy 2024-28 were also a major focus, with a proposed 2.99% increase in the Council's element of council tax and a 2% increase for the adult social care precept. The report detailed savings proposals, demand pressures, legacy budget corrections, and the Council's ongoing dialogue with the government regarding financial support for its structural indebtedness. The Cabinet also noted the provisional Dedicated Schools Grant allocation for 2024-25, which would increase by £28.583m to £466.825m.

In terms of housing, the Cabinet agreed to a 7.7% increase in social rents and tenant service charges for 2024-25, and the continuation of the HRA hardship fund. Garage rents would see no increase, pending a review of asset viability. Caravan site plot charges would increase in line with September CPI of 6.7%. The HRA Business Plan and Budget Update for 2024-25 was also approved, including a £7.1 million increase to invest in council homes.

Decisions were made regarding the future of experimental Healthy Neighbourhoods, with six schemes to be made permanent and one, Kemerton Road, to be removed. Adjustments to improve some of the permanent schemes were also agreed, with officers to work with residents on these. The Capital Programme and Capital Strategy for 2023-29 were approved, outlining planned expenditure of £479.68m for the General Fund and £57.24m for the HRA in 2024-25, with no General Fund borrowing planned for the next two years. The Council's historic borrowing and debt burden was noted as critical to the sustainability of its revenue budget, with ongoing dialogue with the DLUHC for further financial support. The Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement, and Annual Investment Strategy for 2024/25 were also approved, alongside a note on the requirement for Member training in treasury management. Finally, the Review of the Council Tax Care Leavers Relief Scheme was agreed, with updates to support only care leavers where Croydon is the Corporate Parent and where they are named as a liable party. The status of Croydon Council companies, excluding Brick by Brick (Croydon) Limited, was also noted.

Mayor's Business Plan 2022-2026 Performance Report

The Cabinet received an update on the progress of the Mayor's Business Plan 2022-2026, which outlines the Council's strategic objectives and key performance indicators (KPIs). Various Cabinet Members provided updates on their respective portfolios:

• Housing: Councillor Lynne Hale reported on improvements to the housing service, including the development of KPIs based on accurate data, monitoring, and the use of data. A new in-house contact centre has been established with permanent staff receiving bespoke training. Efforts are being refocused to prevent homelessness at an earlier stage, with progression on the key priority of voids.
• Children and Young People: Councillor Maria Gatland highlighted the increased demand for statutory social work services and positive factors such as increased availability of face-to-face learning for 16 to 18-year-olds. A new externally funded caseworker will support the pupil referral unit.
• Health and Adult Social Care: Councillor Yvette Hopley detailed performance indicators for safeguarding, long-term care for over 65s, and support for independent living, which are all in the green zone. Strategic work is underway for amber indicators concerning initial contact resolution and reablement services, and for supporting 18-64 year olds to live independently. Red risks were noted in demand management and rehabilitation, with a focus on improving facilitation into people's own homes.
• Communities and Culture: Councillor Andy Stranack reported that over 200 cultural events had taken place across the borough, reaching over one million people, with 14,000 opportunities for young people and participation from 104 local schools. Recent events like A Very Croydon Christmas received positive feedback.
• Community Safety: Councillor Ola Kolade stated that the Council is continuing to make Croydon safer through the Safer Croydon Partnership and the Community and Safety Engagement Board. Work is being done to address crime and anti-social behaviour. The domestic violence offences rate remains a key issue, with the family justice service leading on this. A new youth outreach programme is being launched to support young people, and the service is acting quicker in response to street robberies and anti-social behaviour.
• Planning and Regeneration: Councillor Jeet Bains reported that the service continues to see performance improving each quarter, with key indicators for major and non-major planning applications determined in time remaining well above government targets.
• Streets and Environment: Councillor Scott Roche noted that improvements are ongoing, with over 97% of reported flytips removed within one working day, although overall concern for flytipping remains high. There is an increase in the volume of recycling waste rejected due to contamination, and efforts are being made to address this. Household waste recycling rates have seen an increase in rejection rates, impacting the overall recycling rate. Street cleansing is at 93% within 24 hours, and household waste collection is at 99% on time.
• Finance: Councillor Jason Cummings reported that the Council had balanced its books with a net budget of zero.

Councillor Stuart King, Leader of the Opposition, raised concerns about 30 out of 84 KPIs having no target set, posing a risk. He also noted that 50% of KPIs with targets were red, with 38 KPIs showing no performance improvement. The Executive Mayor responded that KPIs were a new process for detailed monitoring and benchmarking, reflecting the Council's current position following being under special measures. David Courcoux, Director of Quality Performance, clarified that most indicators without targets were partnership KPIs where the Council did not have direct control.

The Cabinet noted the Mayor's Business Plan performance report.

Brick by Brick Closure Report

The Cabinet approved the closure of Brick by Brick Croydon Ltd on a solvent basis. Delegated authority was given to the Corporate Director of Resources (S151 Officer), in consultation with relevant directors and the Executive Mayor, to manage the wind-down process. This includes deciding on the acquisition of remaining assets and liabilities, negotiating potential sales, entering into legal agreements, approving the final loan write-off amount (up to £70m), issuing director resignations, and appointing new directors.

Budget 2024-25 and Medium Term Financial Strategy 2024-28

The Cabinet approved a balanced budget for 2024-25 and proposed to Full Council an increase in the Croydon element of council tax by 2.99% and a 2% increase in the adult social care precept levy. This results in an overall council tax bill increase of 5.69%. The net budget requirement for 2024-25 is £361.267m. The Cabinet also proposed the detailed programme of revenue savings, income, demand pressures, and legacy budget corrections, and a £5m budget for the transformation programme. They also proposed the Reserves Policy and authorised the Corporate Director of Resources to collect National Non-Domestic Rate and council tax. The Council's request for a Capitalisation Direction from DLUHC of up to £38m for 2024-25, and a further £9.439m relating to 2019-20, was noted, along with the assumption that up to £38m per annum in exceptional financial support will be required for future years. The Cabinet also proposed new additional council tax charges for empty properties and second homes.

2023-24 Period 8 Financial Performance Report

The Cabinet noted that the General Fund revenue budget outturn was forecast to underspend by £1.3m at Period 8, after the budgeted utilisation of £63m capitalisation directions. They also approved an inter-directorate virement of £2.1m non-pay inflation budget from Adult Social Care & Health to Housing on a one-off basis in 2023-24. Progress in MTFS savings achievement and work on the Council's Transformation Programme were noted. The Housing Revenue Account (HRA) revenue budget outturn was forecast to overspend by £12.0m. The General Fund capital programme had a forecast underspend of £20.7m, while the HRA capital programme had a forecast overspend of £1.8m. The Council's historic borrowing and subsequent debt burden was noted as critical to the non-sustainability of the revenue budget, with ongoing dialogue with DLUHC for further financial support. Spend Control Panels continue to operate to maintain financial control.

Repairs Contracts Update

The Cabinet noted the progress following the mobilisation of the new housing repair contracts on 1 August 2023 and agreed the proposed actions, with a commitment to report back to Members with an update within six months. The report highlighted a significant increase in call volumes and repair orders, alongside high levels of sickness absence among temporary staff, which had impacted service delivery. Additional budget provisions were deemed necessary for the current and future years. Positively, the repairs team had significantly reduced legacy voids and resolved a large number of overdue complaints and member enquiries.

HRA Rent Setting 2024-25

The Cabinet agreed to a 7.7% increase in social rents and tenant service charges from April 2024, equating to an average weekly increase of £7.19 for a one-bedroom property. They also agreed to continue the Housing Revenue Account (HRA) hardship fund to assist tenants financially impacted by the rent increase, subject to obtaining a further Direction from the Secretary of State. Garage rents will remain unchanged, pending a full review of asset viability. Caravan site plot charges will increase in line with September CPI of 6.7%.

HRA Business Plan and Budget Update 2024-25

The Cabinet recommended to Full Council the agreement of the proposed HRA budget for 2024-25 and the update to the HRA 30-year Business Plan. They noted the assumptions in the Business Plan and associated risks, as well as the ongoing work on the asset management strategy and enhanced stock condition surveys. The report detailed a £7.1 million increase to invest in council homes and modernise them, with a proposed 33% growth in the responsive repairs budget to address increased demand and compliance with new legislation like Awaab's Law .

The Future of the Experimental Healthy Neighbourhoods

The Cabinet resolved to make permanent six of the experimental Healthy Neighbourhoods (Albert Rd, Dalmally Rd, Elmers Rd, Holmesdale Rd, Parsons Mead, and Sutherland Rd) and to remove the Kemerton Rd Healthy Neighbourhood. Officers will work with residents on adjustments to improve Albert Rd, Holmesdale Rd, and Sutherland Rd schemes, particularly to mitigate the impact of displaced traffic. Authority was delegated to the Corporate Director of Sustainable Communities, Regeneration & Economic Recovery to make the necessary permanent Traffic Management Orders.

Capital Programme and Capital Strategy 2023-29

The Cabinet approved the Council's 2023-29 General Fund Capital Programme, including planned expenditure of £479.68m, and approved incurring nil General Fund borrowing for 2023-24 and 2024-25, with borrowing of £164.67m projected over 2025-29. They also approved the 2024-25 Housing Revenue Account (HRA) Capital Programme with investment planned of £57.24m and nil borrowing. An increase to the 2023-24 HRA capital budget by £3.914m, funded by HRA reserves, was also approved. The Council's Capital Strategy was approved, and the critical nature of the Council's historic legacy borrowing and debt burden was noted, with ongoing dialogue with DLUHC for further financial support.

Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Strategy 2024/25

The Cabinet resolved to approve the Treasury Management Strategy Statement 2024/25, the Prudential Indicators, the Annual Minimum Revenue Provision Policy Statement, and the Borrowing and Investment Strategies. They also noted the requirement for Members to undertake training to understand and scrutinise the Council's treasury management.

Review of Council Tax Care Leavers Relief Scheme

The Cabinet agreed to update the Council Tax Relief Scheme (CLRS) to only support care leavers where Croydon is the Corporate Parent and where they are named as the liable party for Council Tax. This change aims to ensure financial viability and sustainability, aligning with national practice where local authorities are responsible for their own care leavers.

Croydon Companies Supervision and Monitoring Panel - Update Report

The Cabinet noted the status of Croydon Council companies, excluding Brick by Brick (Croydon) Limited. The report indicated progress in simplification and reduction agendas, although some delays were noted regarding LLPs.

Exclusion of the Press and Public

Exclusion of the press and public was not required for any items.

Brick by Brick Closure Report - PART B - Appendix 1

This item was part of the Brick by Brick Closure Report and was not discussed in open session.

The meeting concluded at 8:51 pm.