Agenda item

The Cabinet Member for Finance, Performance and Core Services introduced the Council’s proposed budget framework for 2022/23 which incorporated the following:

-  Proposed General Fund revenue budget for 2022/23;

-  Proposed level of Council Tax for 2022/23;

-  Medium Term Financial Strategy (MTFS) 2022/23 to 2025/26;

-  Draft capital investment programme 2022/23 to 2025/26; and 

-  Update on the Dedicated Schools Grant and Local Funding Formula for Schools.

The Cabinet were reminded that the budget framework for 2022/23 was prepared in the context of consistent reductions in grant by the Government and the cumulative impact of austerity measures since 2010. The Borough was predicted to have the second fastest growing population in the country between 2014 and 2024, which effectively meant that the Council had to do 20% more in terms of demand, with 40% less income. Those challenges meant that the Council was in the undesirable position of having to raise Council Tax by 1.99%, in order to meet some of the extra demand on services.

The Cabinet Member for Educational Attainment and School Improvement referred to the section of the report on the Dedicated Schools Budget and Early Years Funding and stated that 95% of the Borough’s schools had been rated ‘good’ or ‘outstanding’ by Ofsted, which was better than London and national averages. She took the opportunity to thank all staff within the Borough’s schools for their dedication and support to children and young people, particularly during the Covid-19 lockdowns and restrictions. The Cabinet Member also referred to the national funding formula as being less favourable to schools in London, reflecting the Government’s persistent theme of putting some of the most deprived areas of the country, including Barking and Dagenham, at a disadvantage. It was noted that many primary schools would only receive the minimum 2% uplift, which meant a real terms cut when inflation was taken into account.

The Cabinet Member for Health and Social Care Integration referred to a previous suggestion that the savings associated with the transfers of Leys, Becontree and Sue Bramley Children’s Centres from Community Solutions be reviewed and asked that those savings be postponed while the review took place.

The Cabinet Member and Champion for Disabled People welcomed the further £0.6m of growth funding, on top of the £6.8m of growth funding already allocated, to care and support services for those with disabilities, recognising theincreased life expectancy of those with severe and complex disabilities in the Borough.

The Chair referred to the stark disparities in grant funding from the Government between some deprived and affluent boroughs.  He cited the examples of Westminster City, Richmond Upon Thames and Kensington and Chelsea, who received approximately £1200 per head of population while Barking and Dagenham was allocated only £850 per head, which he felt was entirely contradictory to the Government’s own ‘levelling up’ policy.

Cabinet resolved to recommend the Assembly to:

(i)  Approve a base revenue budget for 2022-23 of £181.895m, as detailed in Appendix A to the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2022-23 to 2025-26 allowing for other known pressures and risks at this time, as detailed in Appendix B to the report, including the revised cost of borrowing to accommodate the capital costs associated with the implementation of the MTFS;

(iii)  Delegate authority to the Finance Director, in consultation with the Cabinet Member for Finance, Performance and Core Services, to finalise any contribution required to or from reserves in respect of the 2022-23 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2022;

(iv)  Delegate authority to the Finance Director, in consultation with the Cabinet Member for Finance, Performance and Core Services, to make arrangements for one-off £150 Council Tax energy rebate payments to be made to all households in Bands A – D and establish a discretionary fund for households in need who would not otherwise be eligible;

(v)  Approve the Statutory Budget Determination for 2022-23 as set out at Appendix D to the report, which reflects an increase of 1.99% on the amount of Council Tax levied by the Council, an Adult Social Care precept of 1.00% and the final Council Tax proposed by the Greater London Assembly (8.8% increase), as detailed in Appendix E to the report;

(vi)  Note the update on the current projects, issues and risks in relation to Council services, as detailed in sections 8-10 of the report;

(vii)  Approve the proposed projects/allocations of funding as set out in paragraphs 9.5 and 9.6 of the report and delegate authority to the Strategic Director of Community Solutions in consultation with the Cabinet Member for Community Leadership and Engagement to approve and enter into all necessary contracts, agreements and other documents in order to implement such arrangements;

(viii)  Approve the Council’s draft Capital Programme for 2022-23 totalling £522.625m, of which £66.813m are General Fund schemes, as detailed in Appendix F to the report;

(ix)  Approve the Flexible Use of Capital Receipts Strategy as set out section 12 of the report;

(x)  Note the update on Dedicated Schools Funding and approve the Local Funding Formula factors as set out in section 13 and Appendix Hto the report;

(xi)  Approve the increased rates for Early Years Education as set out in section 13 of the report; and

(xii)  Note the Chief Financial Officer’s Statutory Finance Report as set out in section 15 of the report, which includes a recommended minimum level of reserves of £12m.