Agenda, decisions and minutes

Apologies were given for Councillor Less. The Chair noted that Councillors Barraclough, Jude and Sanquest were observing virtually.

To receive declarations by Members and Officers of the existence and nature of any pecuniary interests or any other significant interest in matters on this agenda.

No declarations of interest were received.

To approve the minutes of the meeting held on 16 December 2024.

Cabinet approved the minutes of the meeting held on 16 December 2024.

To approve recommendations to Full Council for consideration at its meeting on 5 March 2025, including the Council’s medium-term plan for the next four years and the budget for the 2025/26 financial year.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       That the Council Tax for a Band D be agreed at £526.80 for 2025/26

·       That subject to the consideration of the previous recommendation, the council tax for the City of Westminster, excluding the Montpelier Square area and Queen’s Park Community Council, for the year ending 31 March 2025, be as specified in the Council Tax Resolution in Appendix 1

·       That the Precepts and Special Expenses be as also specified in Appendix 1 for properties in Montpelier Square and the Queen’s Park Community Council

·       That the formal resolution for 2025/26 attached at Appendix 1 including the council tax requirement of £74.578m be agreed

·       Note the proposed Greater London Authority precept (Band D) of £490.38, an increase of £18.98 in the adjusted Band D precept

·       That the Council continues the Westminster Community Contribution scheme to allow residents in the City to voluntarily contribute towards supporting discretionary services that support the four priorities helping young people reach their full potential, including staying safe, contributing positively to their community and developing longer term skills; providing extra support for people who find themselves sleeping on Westminster’s street; tackling social isolation and loneliness and promoting social inclusion.

·       Note the views of the Scrutiny Budget Task Group set out in Appendix 2

·       That the proposed General Fund net budget requirement of £213.426m summarised in Appendix 3 is approved

·       That the savings, pressures and investments for 2025/26 to 2027/28 set out in Appendix 4, 5 and 6, are approved

·       That the Equality Impact Assessments included in Appendix 7 are noted to inform the consideration of the budget

·       Note the Housing Revenue Account (HRA) Business Plan 2025/26 and 30 Year Housing Investment Plan presented concurrently to Cabinet on 17 February 2025 that recommends the HRA budget and rent levels for 2025/26

·       Note the Dedicated Schools Grant (DSG) allocations totalling £202.405m and agree that the schools block of £137.587m is allocated to schools using the local formula agreed by Westminster Schools Forum which moves 30% closer to the National Funding Formula factor values and meets DfE requirements

·       That the Executive Director of Finance and Resources be delegated responsibility for any technical adjustments required to be made to the budget.

·       That the cost of inflation, pressures and contingencies be issued to service budgets if and when the need materialises, to the limits contained within the budget gap calculations.

·       That the views of consultees and consultation approach, as set out in the relevant section be considered by Council.

·       Note the Capital Strategy 2025/26 to 2029/30, forecast position for 2024/25 and future years’ forecasts summarised up to 2038/39 report also presented to Cabinet on 17 February 2025 that recommends the Council’s capital programme and financing

·       Agree the reserves policy as set out in section 9

·       Note the opinion of the Section 151 Officer with regards to the robustness of the budget process, the estimates underpinning the budget and the adequacy of the reserves as set out  ...  view the full decision text for item 4.

Councillor Boothroyd introduced the report, stating that this was the culmination of a long process in which all Cabinet Members and Chief officers have worked together and helped to bring the budget into balance, delivering improved services for keeping tanks low while using only minimal reserves. He noted his thanks to Gerald Almeroth, Rikin Tailor and Lyndsey Gamble.

Councillor Boothroyd highlighted that in this year’s budget there are additional savings of £29 million, progress made in reducing the temporary accommodation pressure and significant investment in tackling ASB. He noted that the local government funding system put in place by the previous government assumes a rise in council tax and that was part of this budget.

Councillor Boothroyd thanked the members of the Budget Scrutiny Task Group (BTSG) for their work in scrutinising the budget and that it was noted in the recent Corporate Peer review that the Council’s budget scrutiny process had improved considerably over the past three years. He commended the Budget to Cabinet.

Councillor Fisher, Chair of the BTSG, noted his thanks to Gerald Almeroth and Rikin Tailor who have supported Task Group getting to grips with the budget, and thanked Cabinet Members for their participation. He confirmed that the view of the group is that the budget is robust.

Councillor Fisher commended the work of Sarah Warman and her team to reduce temporary accommodation budget pressures, and that the Council should lobby central government about the consequences of any reform to Section 21 which may reduce the private sector stock available. He also noted the impact of falling school roles, and that Cabinet should in future consider provision for losses arising due to cyberattacks.

Gerald Almeroth noted that additional government resources have recognised that there are pressures in local government and that a wider review of local government funding reform is to come this year.

Gerald Almeroth noted that the budget has significant policy investments in line with the Fairer Westminster themes with £14 million of additional funding and manages higher levels of inflation and other cost pressures from rising demand in some services. He concluded that reserve levels are adequate, and the estimates used to set the budget are robust.

Councillor Barraclough welcomed the additional spending on anti-social behaviour and on helping rough sleepers get off the streets and extra pay for care staff. He noted that the budget also includes savings that were agreed in previous years and that the Economy team is delivering a £400,000 per year saving through a restructure.

Councillor Barraclough commended the continued funding of the retrofit task force into the next financial year, which is bringing together stakeholders to upgrade historic buildings.

The Chair echoed Councillor Barraclough’s comments. He noted that the Council has been on a programme of delivering efficiencies whilst making sure there is space to be progressive and ambitious in improving the city, and the budget gets the approach to being prudent about risks that lie ahead.

The Chair highlighted the key initiatives around payments for adult  ...  view the full minutes text for item 4.

To approve recommendations to Full Council for consideration at its meeting on 5 March 2025, including the capital strategy and the capital expenditure for the General Fund for 2025/26 to 2029/30 and future years to 2038/39.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       Approve the capital strategy as set out in this report.

·       Approve the capital expenditure for the General Fund as set out in Appendix A for 2025/26 to 2029/30 and future years to 2038/39.

·       Agree that all development and investment projects, along with all significant projects follow the previously approved business case governance process as set out in this report.

·       Approve that no financing sources, unless stipulated in regulations or necessary agreements, are ring fenced.

·       Approve the proposed financing of the capital programme and revenue implications as set out in this report.

·       Delegate authority to the Executive Director of Finance and Resources for decisions surrounding financing of the capital programme to provide sufficient flexibility to allow for the most effective use of the Council’s resources.

Reasons for Decision: The Capital Strategy for the coming years seeks to prioritise and co-ordinate funding to achieve the Council’s Fairer Westminster policy objectives; ensure that capital resources are directed to maintain the Council’s statutory requirements across its asset base; and manage investment effectively and efficiently

Councillor Boothroyd introduced the report, emphasising the ambition of the Council’s capital programme and continued delivery. He highlighted the Ebury and Church Street regeneration programmes, decarbonisation of Council buildings, Community Hubs, and the Pimlico District Heat Undertaking.

Gerald Almeroth noted that the strategy sets key areas of investment that are aligned to Fairer Westminster priorities and includes investment in acquiring residential properties to support homeless homelessness and the demand for temporary accommodation.

Councillor Butler-Thalassis highlighted a project that was delivered this year with capital funding, the Alfred Rd playground, which renovated to a very high standard with equipment for children with disabilities.

Councillor Barraclough commended the Council’s ability to maintain a high level of investment funding of capital spend and highlighted the High Streets programme and the progress made on Oxford Street by the Council such as taking on candy shops, the Meanwhile programme and agreeing a public realm programme with New West End Company. He noted that with the Mayor now funding Oxford Street, the Council now has the headroom to complete the North Paddington Place Plan.

The Chair acknowledged the opportunity presented by Oxford Street to reallocate funding to where it can make most impact across the city. He noted his appreciation for the team working at pace to provide the additional temporary accommodation units that will save money on the revenue budget but also provide stability for residents.

Cabinet approved the recommendations set out on page 134 of the report pack.

To approve recommendations to Full Council for consideration at its meeting on 5 March 2025, including the HRA revenue budget for 2025/26; the HRA 5-year Capital Programme totalling £916.204m; and a rent increase of 2.7% from 1 April 2025 in line with the maximum increase for social rent set by the national rent policy.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       Approve the HRA revenue budget for 2025/26

·       Note the HRA 5-year revenue budgets for 2025/26 to 2029/30 and HRA 30-year revenue budgets for 2025/26 to 2054/55

·       Approve the HRA 5-year Capital Programme totalling £916.204m

·       Note the 30-year Capital Programme for 2024/25 to 2053/54 totalling £2.537bn

·       Approve the inclusion of all Fairer Westminster investments, including the extension of the HRA Rent Support Fund by £1.000m for 2025/26 to support tenants experiencing financial difficulty during the cost-of-living crisis.

·       Approve a rent increase of 2.7% from 1 April 2025 in line with the maximum increase for social rent set by the national rent policy, whilst noting that the Council continues to exercise its discretion under the rent restructuring policy to set rents for re-lets (both new tenants and transfers) up to formula target rent.

·       Approve an increase of 1.7% to the fees charged for garages, sheds and parking (in line with CPI at September 2024) from 1 April 2025.

·       Approve that tenant service charges be varied in line with estimated actual costs for 2025/26, from 1 April 2025.

·       Note the HRA reserves and balances for the 5-year Business Plan

Reasons for Decision: The Council is required to set a budget for the Housing Revenue Account that avoids a deficit and to prepare a 30-Year Business Plan for the HRA on an annual basis to keep the long-term financial viability of the HRA under regular review. Approval is also needed to set HRA tenant rents and other charges for the financial year 2025/26.

Councillor Begum introduced the report, noting that presented a sustainable long term plan that keeps the HRA on a sound financial footing. She highlighted the rent increase for 2025/26, which will allow the HRA to absorb the impact of inflation and impact of new statutory responsibilities including the Building Safety Act, extend the Rent Support and make additional capital funds available to invest in the condition of existing stock and deliver over 1000 new council homes for social rent.

Councillor Begum highlighted the Plan’s contribution to a Fairer Westminster, including an extended programme of stock condition surveys and major works totalling of £178 million over the next five years, and funding to retrofit existing homes towards net zero targets.

Councillor Begum noted that there are several measures into the HRA Business Plan to ensure that it remains resilient in the face of the continuing challenging economic outlook within the social housing sector.

Sarah Warman highlighted the focus around good use of the HRA to deliver the many demands across housing and ensure the Council meets its statutory responsibilities and delivers for residents, particularly around the local place-based offering and capital investment.

The Chair noted his thanks to Sarah and the team for improved standards within our Housing Services as part of the Housing Improvement programme, and progress that's being made in terms of making the service more responsive despite pressures facing the sector more broadly.

The Chair acknowledged the importance of the Rent Support Fund in supporting residents who don’t receive housing benefit and the work being undertaken in Councillor Noble’s portfolio to deliver new social homes.

Cabinet approved the recommendations set out on page 181 of the report pack.

To approve recommendations to Full Council for consideration at its meeting on 5 March 2025, including implementation of the Integrated Investment Framework, that the target for the overall return on Council investments should aspire to at least meet forecasts for inflation over the medium term; and  that the benefits of investing in the Pension Fund should be used as a benchmark when evaluating other investments.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       Approve and implement the Integrated Investment Framework set out in this report.

·       Approve that the target for the overall return on Council investments should aspire to at least meet forecasts for inflation over the medium term

·       Approve that the benefits of investing in the Pension Fund should be used as a benchmark when evaluating other investments

·       Adopt the asset allocation percentage ranges set out in the framework and work towards achieving these

·       Agree that the overarching objective of this framework is to achieve an overall return on Council investments and to reduce costs and liabilities, while maintaining adequate cash balances for operational purposes, and not exposing the capital value of investments to unnecessary risk

·       Agree that assets must only be acquired for strategic purposes. Such prospective acquisitions must be considered individually, with the reasons for investment limited to regeneration or development of the location, or other strategic purposes in which the asset is established. Out-of-borough acquisitions may also be considered by exception.

·       Approve The Investment Executive to implement, monitor and report on the investment strategy

Reasons for Decision: The Investment Framework sets out the Council’s strategic objectives in respect of risk management, and its attitude towards investment risk, as well as current levels of investment activity. Approval is sought for the updated Integrated Investment Framework for the Council going forward which seeks to diversify the risk and future proof the Council against possible future economic downturns, as well as actions that will be taken to implement the Framework.

Councillor Boothroyd introduced the report, noting that the principles guiding the investment and the allocations targets have been the same for some time and remain stable. He confirmed that the Investment Executive had met to go through the investments and performance over the last year and were satisfied with the framework.

Councillor Boothroyd commended the report to Cabinet.

Cabinet approved the recommendations set out on page 225 of the report pack.

To approve recommendations to Full Council for consideration at its meeting on 5 March 2025 including the Treasury Management Strategy Statement; the borrowing strategy and borrowing limits for 2025/26 to 2029/30; the Prudential Indicators; the Annual Investment Strategy (AIS) and approved investments; and the Minimum Revenue Provision Policy.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       Approve the Treasury Management Strategy Statement

·       Approve the borrowing strategy and borrowing limits for 2025/26 to 2029/30

·       Approve the Prudential Indicators

·       Approve the Annual Investment Strategy (AIS) and approved investments

·       Approve the Minimum Revenue Provision Policy

·       Delegate authority to the Executive Director of Finance and Resources as outlined in Appendix 3 of the report

Reasons for Decision: The Treasury Management Strategy Statement is required to ensure compliance with the Local Government Act 2003, other regulations and guidance and to ensure that the Council’s borrowing and investment plans are prudent, affordable and sustainable.

Councillor Boothroyd introduced the report, noting that that the Council's capital programme is affordable and all borrowing needed to finance it is prudent. He highlighted the Council’s credit rating, which is the highest possible, and paragraph 5.9 which refers to due diligence to assess whether to invest in a fund, which will additionally help support finding to temporary accommodation.

Councillor Boothroyd commended the report to Cabinet.

Cabinet approved the recommendations set out on page 248 of the report pack.

To approve the acquisition of 368 homes from A2Dominion, in use by the Council for temporary accommodation, and to approve the necessary financing and governance arrangements including the incorporation of a Limited Liability Partnership.

Cabinet approved the following recommendations:

·       Approves the acquisition of the Portfolio, as listed in Exempt Appendix A, from A2Dominion, into the Council and the disposal by on-sale and/or grant Page 288 (as applicable) from time to time of leasehold titles to homes within the Portfolio or (as applicable) other homes owned by the Council which satisfy the funder’s criteria, to Council owned entities established for the funding structure.

·       Approves the incorporation of a Limited Liability Partnership (the LLP) and other associated limited companies to create a funding structure satisfying the funder’s criteria (the Funding Companies which, for the avoidance of doubt, includes the LLP), bank accounts and administrative and legal matters required for the establishment of the Funding Companies and approves the governance arrangements, in line with Exempt Appendix C.

·       Approves entering into the arrangements to secure the funding, including the Council providing the required guarantee to the funder and the Funding Companies granting security to the funder over the Portfolio.

·       Approves the Council's acceptance of a lease(s) back of up to 368 properties of the Portfolio granted by the relevant Funding Companies, following the acquisition by the relevant Funding Companies.

·       Approves the authorisation of the Council’s Section 151 Officer and Monitoring Officer to issue certificates to the funder, in the form to be agreed with the funder, to certify compliance with applicable financial requirements and legal requirements (amongst other things) respectively and further authorises that both officers be indemnified (to the fullest extent allowed) in connection with the giving of such certificates

·       Delegates authority to the Executive Director of Finance and Resources and the Strategic Director of Housing and Commercial Partnerships, in consultation with the Cabinet Member for Housing and Finance & Council Reform, to confirm satisfactory completion of due diligence regarding the Portfolio, to confirm satisfactory completion of the negotiation and finalisation of the structure, terms and arrangements for the portfolio acquisition and the funding transaction such that the Council can reasonably proceed with the Portfolio acquisition and the funding transaction, and to approve the entry into all legal agreements and associated documents, and undertake all other necessary actions to secure the acquisition of the Portfolio and enter into the funding transaction, including the settlement of the rent dispute between the Council and A2Dominion and the other legal and financial arrangements.

Reasons for Decision: The Council has been using the Portfolio as temporary accommodation for over 15 years and has now been asked to acquire this stock. If the Portfolio was lost, it would inconvenience TA residents and result in a significant financial pressure to the Council. This acquisition also supports the Council’s longer term aims to acquire more directly owned TA and reduce its reliance on nightly booked accommodation.

Councillor Boothroyd introduced the report, noting that recently A2Dominion advised that they wished to dispose of 368 homes which housed the Council’s temporary accommodation tenants, and offered the Council the opportunity to acquire those homes.

Councillor Boothroyd noted that the unusual form of financial arrangement set out in the report, which has been subjected to a robust financial appraisal to ensure it represents good value for money. 

Councillor Begum highlighted that the funding structure not only allows us to purchase the homes from A to Dominion but also with £33.5 million in funding to refurbish the homes and bring them to an EPCC standard or better, and improve living conditions for tenants.

Councillor Begum noted that the acquisition will prevent 368 households from the upheaval of being relocated to alternative accommodation.

Sarah Warman commented that the Council is working closely with A2Dominion to ensure that communication and assurance to residents is managed. She noted the acquisition supports the wider programme around ensuring the level of ownership of TA increases.

Gerald Almeroth noted that the Council has taken sound, external tax advice and carried out financial appraisals that that enable officers to recommend the deal.

The Chair noted the financial arrangements mean the Council does not have to absorb the cost into its capital programme upfront.

Councillor Barraclough highlighted that the flats were mainly right to buy flats that were sold by the Council to their tenants and the Council is now buying them back for a much higher price.

The Chair noted his thanks to officers for taking this forward.

Cabinet approved the recommendations set out on pages 228 and 229 of the report pack.

To approve a recommendation to Full Council for consideration at its meeting on 5 March 2025: the draft Pay Policy 2025/26.

Cabinet approved the following recommendations to Full Council for consideration at its meeting on 5 March 2025:

·       Approve the draft Pay Policy Statement for 2025-26.

Reasons for Decision: Councils are required to produce Pay Policy Statements articulating the authority’s policies towards a range of issues relating to the pay of its workforce. A Pay Policy Statement must be prepared for each financial year, approved by Full Council, and published on the Council’s website.

The Chair introduced the item.

No comments were received.

Cabinet approved the recommendations set out on page 340 of the report pack.