Agenda item

The Cabinet Member for Finance, Growth and Core Services introduced the Council’s proposed budget framework for 2023/24 which incorporated the following:

· Proposed General Fund revenue budget for 2023/24;

· Proposed level of Council Tax for 2023/24;

· Medium Term Financial Strategy (MTFS) 2023/24 to 2026/27;

· Draft capital investment programme 2023/24 to 2026/27;

· Housing Revenue Account budget 2023/24.

The General Fund net budget for 2023/24 was £203.568m, which incorporated decisions previously approved by Members in the Medium Term Financial Strategy, including the savings approved by Assembly in previous years, together with changes in Government grants and other financial adjustments. The Council proposed to increase Council Tax by 4.99%, made up of 2.99% for general spending and 2% that would be ringfenced as an adult social care precept.

The Cabinet Member presented the proposed budget framework against a backdrop of a cost-of-living crisis, which included rising energy and food prices and a government which had placed a decade of austerity on public services with no plan for growth in the economy.  Despite this, Barking and Dagenham was one of the only councils in London not to be proposing any cuts to services and was, instead, focussing on growth for the borough, enabling the Council to continue to deliver on residents’ priorities.

Members acknowledged the hard work undertaken by the Cabinet Member and officers to achieve a balanced budget against a backdrop of incompetency by the Government.  The Council had a history of protecting the most vulnerable residents and would continue to do so with the proposed budget framework.

In accordance with paragraph 10.3.2 of Part 2, Chapter 3 of the Council Constitution, the budget was put to a recorded vote and was agreed as follows:

For: Councillors Achilleos, Akwaboah, Ashraf, P Bright, S Bright, Channer, N Choudhury, Cormack, Freeborn, Geddes, Ghani, Haroon, Hornby, Hussain, Jones, Kangethe, Khan, Lumsden, Miah, Nalule, Oluwole, Paddle, Perry, Pongo, Quadri, Rahman, Rai, C Rice, L Rice, P Robinson, D Rodwell, Sandhu, Shaukat, Twomey, Worby, Yusuf and Zamee (37).

Against: None (0)

Abstain: None (0)

The Assembly resolved to:

(i)  Approve a base revenue budget for 2023/24 of £203.568m, as detailed in Appendix A to the report;

(ii)  Approve the adjusted Medium Term Financial Strategy (MTFS) position for 2023/24 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 Strategic Director, Finance and Investment, in consultation with the Cabinet Member for Finance, Growth and Core Services, to finalise any contribution required to or from reserves in respect of the 2023/24 budget, pending confirmation of levies and further changes to Government grants prior to 1 April 2023;

(iv)  Approve the Statutory Budget Determination for 2023/24 as set out at Appendix D to the report, which reflects an increase of 2.99% on the amount of Council Tax levied by the Council, an Adult Social Care precept of 2.00% and the final Council Tax proposed by the Greater London Assembly (9.7% increase), as detailed in Appendix E to the report;

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

(vi)  Approve the Council’s Housing Revenue Account budget for 2023-24 as set out in Section 11 to the report;

(vii)  Approve the approach to updating the stock condition survey for the Council’s housing stock, as referred to in paragraphs 11.5 – 11.8 of the report, and delegate authority to the Strategic Director, My Place, as advised by the Council’s Procurement Board and in consultation with the Cabinet Member for Community Leadership and Engagement, the Strategic Director, Finance and Investment and the Chief Legal Officer, to conduct the procurement and award and enter into the contract(s) and all other necessary or ancillary agreements with the successful bidders;

(viii)  Approve the Council’s draft Capital Programme for 2023/24 totalling £388.126m, of which £43.909m are General Fund schemes, as detailed in Appendix F to the report;

(ix)  Note the update on the Flexible Use of Capital Receipts Strategy as set out section 13 of the report; and

(x)  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.