The Cabinet of Barking and Dagenham Council met on Monday 16 February 2026 to discuss and approve a range of significant financial and strategic matters. Key decisions included the adoption of the Budget Framework for 2026/27 and the Medium-Term Financial Strategy for 2026/27 to 2030/31, which involves a 4.99% Council Tax increase. The Cabinet also approved the Barking and Dagenham Housing Strategy for 2026-2031 and the business plans for Be First (Regeneration) Ltd, B&D Energy Ltd, and B&D Reside Group.

Budget Framework 2026/27 and Medium-Term Financial Strategy 2026/27 to 2030/31

The Council's budget for the upcoming financial year and its medium-term financial strategy were approved, with a Council Tax increase of 4.99% agreed. This increase includes a 2% adult social care precept. The General Fund Budget for 2026/27 includes £8.7 million in savings, with £1.8 million from Invest-to-Save proposals, and £32.8 million in growth. The Medium-Term Financial Strategy highlights a projected budget gap of £5.7 million in 2027/28, increasing to £82.4 million by 2030/31, indicating a need for significant transformation to ensure long-term financial sustainability. The Council's Section 151 Officer confirmed the robustness of the budget proposals and the adequacy of reserves.

Fees and Charges 2026/27

Cabinet approved the proposed fees and charges for 2026/27, which will be effective from 1 April 2026. The majority of fees and charges will be uplifted in line with inflation, using the August CPI figure of 3.8%. Some variations were approved based on detailed cost analysis or benchmarking against neighbouring councils, while others remained unchanged due to statutory limitations or cost recovery principles. Notably, fees for street trading and some parking charges were adjusted to align with market rates and encourage trade, while others were reduced or removed to support vulnerable residents or improve value for money.

Treasury Management Strategy Statement 2026/27 and Capital Strategy 2026/27 to 2027/28

The Council's Treasury Management Strategy Statement for 2026/27 and Capital Strategy for 2026/27 to 2027/28 were approved. The strategies outline the Council's approach to borrowing, investment, and capital expenditure, aiming to ensure financial efficiency and sustainability. Key indicators for borrowing and investment were approved, with a focus on managing risks associated with high interest rates and market volatility. The Council's Capital Financing Requirement (CFR) is projected to decrease over the coming years, and the Authorised Limit for external debt remains at £2.2 billion. The strategy acknowledges the current high interest rate environment and proposes a cautious approach to long-term borrowing, favouring short-term options where appropriate.

Barking and Dagenham Housing Strategy 2026-2031

Cabinet approved the Barking and Dagenham Housing Strategy 2026-2031 and its accompanying Action Plan. This five-year strategy aims to ensure all residents have access to safe, good-quality, affordable, and accessible homes. It sets out six strategic objectives, including increasing the supply of affordable homes, preventing homelessness, improving housing quality and safety, and supporting vulnerable residents. The strategy has been developed through extensive resident engagement and aligns with the Council's corporate priorities.

Be First (Regeneration) Ltd Business Plan 2026-2031

Cabinet approved the Addendum to the Be First (Regeneration) Ltd Business Plan for 2026-2031. This plan outlines Be First's strategy to transition from reliance on Council funding to attracting private sector finance for development. Key objectives include increasing customer connections to the Barking Town Centre Heat Network, preparing for decarbonisation, establishing a targeted operating model, and supporting the delivery of additional heat network capacity. The plan acknowledges risks related to regulatory changes and the need to tackle residential debt, with mitigation strategies in place.

B&D Energy Ltd Business Plan 2026-2031

The refreshed Business Plan for B&D Energy Ltd for 2026-2031 was approved. The company, which develops, operates, and supplies low-carbon district heat networks, is in a positive position with a growing customer base and sound infrastructure. The plan forecasts continued growth in connections and revenues, with profit after tax expected from 2027/28. Key objectives include increasing customers on the Barking Town Centre Heat Network, maintaining compliance with OFGEM regulations, preparing for network decarbonisation, and establishing a targeted operating model.

B&D Reside Group Business Plan 2026-2031

Cabinet approved the Business Plan for the B&D Reside Group for 2026-2031. This plan consolidates the strategic, operational, and financial objectives for the group's entities, which are responsible for the purchase and management of affordable homes. The plan forecasts continued growth, with an aim to add 1,400 new homes by 2027. It also outlines a focus on transformation and efficiency, with the company expected to meet its loan repayments and provide a surplus return to the Council. The plan acknowledges risks related to scheme delays and potential impacts on financial performance.

New Homes for Residents of Millard Terrace and Strategy for the Redevelopment of Dagenham Heathway Site

Cabinet approved the decant strategy for Millard Terrace, which involves redeveloping the site and relocating residents to new social rented homes at Jervis Court and Brockelbank Lodge. This approach is considered more cost-effective than extensive repairs to the existing Millard Terrace building. The report also outlined the strategy for the comprehensive redevelopment of the Dagenham Heathway site, recommending a partnership model to leverage private sector capital and reduce Council borrowing. Cabinet approved the use of HRA borrowing for the decant sites and noted that further reports will follow regarding the main redevelopment of the Heathway Mall Shopping Centre.

Investment and Acquisition Strategy - Update and Future Proposals

Cabinet noted the conclusion of the Council's current Investment and Acquisition Strategy (IAS) as the asset acquisition programme has ended and remaining development schemes are nearing completion. A new focus on Strategic Commercial Asset Management was approved, based on principles of protecting and enhancing existing assets, optimising the asset base through disposals, and attracting private capital for future housing and regeneration. This revised approach aims to improve portfolio performance, generate sustainable net income, and support the Council's regeneration ambitions without further debt funding.

Ripple Nature Reserve Masterplan

Cabinet agreed in principle to the Ripple Nature Reserve Masterplan, signalling the Council's intention to restore and reopen the site for public use. The masterplan proposes enhancing biodiversity, creating new habitats, and improving public accessibility. While funding for the £1.4 million scheme is not yet secured, its adoption provides a basis for discussions with developers and grant funders, such as the National Lottery Heritage Fund. The plan also outlines a phased approach to works and a proposed maintenance regime, acknowledging the need for future funding solutions.

Barking and Dagenham Homes Ltd: Progress towards becoming a Registered Provider of Social Housing

Cabinet received an update on the progress of Barking and Dagenham Homes Ltd (BDHL) towards becoming a Registered Provider of Social Housing (RPSH). The report outlined an updated timeline, with registration anticipated by December 2027. To facilitate this, revisions to BDHL's Articles of Association were proposed to ensure compliance with regulatory requirements for board independence. Cabinet also agreed to extend the term of operating leases for new build homes transferred to BDHL from June 2026 to December 2027, aligning with the updated RPSH timeline.

Beam Park and Gascoigne East Phase 3B - Approval of Disposals, Head Leases and Loan Facility Agreements

Cabinet approved the disposal of new build schemes at Beam Park and Gascoigne East Phase 3B through granting long leases and associated loan facility agreements to the appropriate Reside entities or Barking and Dagenham Homes Ltd (BDHL). This action is necessary to ensure compliance with state aid and subsidy control legislation and to facilitate the transfer of these properties, which will increase the Council's affordable housing options for residents. Delegated authority was given to officers to finalise terms and execute legal agreements.

Procurement of All-Age Behaviour Change Perpetrator (Domestic Abuse) Service

Cabinet agreed to proceed with the procurement of an All-Age Behaviour Change Perpetrator Service. This service is crucial for tackling domestic abuse, supporting victims, and breaking cycles of violence by challenging perpetrator behaviour and offering opportunities for change. The contract, estimated at £228,000 per annum over an initial three-and-a-half-year term with extension options, will be funded by the Public Health Grant. The procurement will follow a light-touch regime under the Procurement Act 2023, with a 70% quality, 20% price, and 10% social value weighting.

Contract for the Servicing and Maintenance of Passenger Lifts

Cabinet agreed to proceed with the procurement of a contract for the servicing and maintenance of passenger lifts across the Council's portfolio. The contract will be for an initial three-year term with the option to extend for two additional years. The estimated value of the contract is £1.89 million. The procurement will be conducted via the Procure for Housing (PFH) Dynamic Purchasing System (DPS) to ensure a competitive, transparent, and compliant process, aiming to achieve best value for money and strengthen compliance and risk management.

The meeting concluded with the Chair declaring no other urgent public or private items were to be discussed.