The Strategy and Resources Committee of Sutton Council met on 19 February 2024 to discuss the council's financial performance, set the budget for the upcoming year, and consider the future use of the Sutton Life Centre. Key decisions included approving a significant increase in Council Tax and implementing changes to the empty homes premium.

2024/25 Budget and Medium Term Financial Plan

The committee approved a series of recommendations for the 2024/25 budget and the Medium Term Financial Plan (MTFP) for 2024/25 to 2026/27. A significant decision was to increase the Sutton element of Council Tax by 2.99% for the general increase, amounting to £48.26 for a Band D property, and a further 2% for the Adult Social Care Precept, an increase of £32.28. This brings the total Council Tax for a Band D property to £1,694.78, excluding the Greater London Authority (GLA) precept. The committee also agreed to amend the definition of long-term empty homes, meaning unfurnished properties empty for one year or more will be liable for a 100% Council Tax Empty Property Premium from 1 April 2024, a reduction from the previous two-year threshold.

Other key budget decisions included agreeing the proposed General Fund Net Budget Requirement of £174.248m, approving the Council's pay policy statement for 2024/25, and agreeing the proposed growth items and savings for the upcoming year. The committee also approved the Members’ Allowances Scheme for 2024/25 and the Fees and Charges for the same period.

In terms of capital investment, the committee approved a new Capital Strategy and a detailed Capital Programme for 2024/25 to 2027/28, with a total projected spend of £343.7m (£107.1m for the General Fund and £236.6m for the Housing Revenue Account (HRA)). This includes proposed funding arrangements and policies. The committee also noted the updated forecast for Transformation Spend, to be funded using capital receipts in line with the Flexible Use of Capital Receipts Strategy.

The committee also approved the Treasury Management Strategy for 2024/25, which includes the Annual Investment Strategy, prudential indicators, Minimum Revenue Provision (MRP) policy, and borrowing limits. The forecast reserves position was noted.

Finally, the committee noted the Council's transformation programme as a key mechanism for delivering corporate and financial plans, and noted the decision to remain in the Surrey Business Rates Pool for 2024/25. The schools funding formula factors were approved, and a rent increase of CPI + 1% was noted, in line with the government's cap on social rent increases for 2024/25. The budget proposals for the HRA were approved, aligning with the Business Plan reviewed by the Housing, Economy and Business Committee in January 2023. The updated assessment of compliance against the CIPFA Financial Management Code was also noted.

2023/24 Finance & Performance Update - Quarter 3

The committee received an update on the council's financial performance and Key Performance Indicators (KPIs) for the third quarter of 2023/24. It was noted that there is a forecast overspend of £4.743m for revenue outturn, and actions are being implemented to mitigate this. A further overspend of £4.987m is forecast for the Dedicated Schools Grant (DSG) outturn, with the impact of the deficit to be carried forward. Conversely, there is a forecast underspend of £2.86m for the Housing Revenue Account (HRA) outturn. The committee also noted the 2023/24 forecast capital outturn and performance against prudential indicators, as well as ombudsman decisions and actions taken during the quarter.

The Sutton Life Centre - Consideration for Future Use

The committee considered the future use of the Sutton Life Centre. It was resolved that the Assistant Director, Asset Management and Capital Delivery be authorised to agree the final lease to Orchard Hill College. Furthermore, authority was delegated to the Strategic Director of Resources to complete the procurement for the capital works required to deliver the scheme.

Resolution for Authority to Make a Compulsory Purchase Order (CPO) to Facilitate the Regeneration of Elm Grove

The committee resolved to make a Compulsory Purchase Order (CPO) under section 226(1)(a) of the Town and Country Planning Act 1990 and section 13(1) of the Local Government (Miscellaneous Provisions) Act 1976. This order is for the acquisition of all land interests in the Order Land identified on the map and new rights over land coloured blue on the map. The committee authorised the publication and service of all necessary notices relating to the making of the Order.

The Strategic Director of Resources was authorised to make any necessary amendments to the Order, settle its final form and content, and take all actions to pursue the Order and secure its confirmation by the Secretary of State, including presenting the council's case at any public inquiry. This authority also extends to entering into agreements with landowners or statutory undertakers regarding the withdrawal of objections, seeking exclusion of land from the Order, and managing compensation and blight notices.

The Strategic Director of Resources was further authorised to take all steps to implement the Order, including publishing notices of confirmation, executing vesting declarations, notices to treat, and notices of entry. This includes High Court Enforcement Officer notices and handling any legal proceedings, disputes over compensation, and appeals. Finally, the Strategic Director of Resources was delegated authority to determine if any part of the Order Land should be appropriated for planning purposes to facilitate the redevelopment of Elm Grove, and to approve any necessary applications to the Secretary of State for consent to appropriate Housing Revenue Account (HRA) land for planning purposes.

Statutory Review of Polling Districts and Polling Places 2024

The committee noted the proposed timetable for the statutory review of polling districts and polling places, along with the criteria for assessment and the proposed consultation process. Authority was delegated to the Chief Executive, as the (Acting) Returning Officer, to amend the timetable if the next general election, due by January 2025, does not take place in May 2024. It was also noted that this is a statutory process with defined steps and time periods set out in legislation.