To approve the following recommendations to Full Council for consideration at its meeting on 6 March 2024: approve the Council’s medium-term plan for the next four years and the budget for the 2024/25 financial year.
Decision:
Cabinet approved the following recommendations to Full Council for consideration at its meeting on 6 March 2024:
Council Tax
Revenue Budget
Capital Programme
Reserves, Balances and Budget Estimates
Treasury Management and Investment Framework
Fairer Westminster Delivery Plan
Reasons for Decision
The Council has a statutory requirement to set a balanced budget and submit a budget return to central government. This report sets council tax for the forthcoming financial year and approves the Council’s medium-term plan for the next four years and the budget for the 2024/25 financial year.
Minutes:
The Chair introduced the item and invited Councillor Boothroyd to speak to the report, followed by Gerald Almeroth, Executive Director of Finance and Resources, and Councillor Fisher as Chair of the Budget Scrutiny Task Group.
Councillor Boothroyd noted that this is the Council’s budget which provides funding to continue to develop the Fairer Westminster strategy, with investment in the priorities of the people of Westminster, including CCTV, community hubs, boosting carer pay and supporting familiees during the cost of living crisis.
Councillor Boothroyd highlighted that the Council has been able to make savings without harming services, as well as increased income through more realistic fees and charges to reflect the cost in providing services, with a council tax increase set in line with that assumed under the government funding settlement.
Councillor Boothroyd noted that this budget has had to approve additional spending to an unprecedented extent as a result of the temporary accommodation crisis and thanked the finance team who have managed this.
Councillor Boothroyd noted that Westminster does have more capability than most, with the temporary acquisitions programme having some impact but more work needs to be done to alleviate the cost of nightly-booked accommodation and find more cost-effective private sector homes.
Gerald Almeroth highlighted the volatility of temporary accommodation costs and that officers have worked hard to come up with a plan to manage this, but that it still poses significant risk going forward.
Gerald Almeroth noted that the budget process this year has been robust and can give assurances as reflected in his section 25 statement.
Gerald Almeroth noted the medium-term position and that there is still a £48m gap which the Council will be working to close over the coming period.
Councillor Fisher highlighted that temporary accommodation is the critical issue for the Council with councils facing unprecedented demand, and that the task group was encouraged to see the council taking action to increase cost-effective supply to protect residents.
Councillor Fisher noted that the improvements to scrutiny recommended last year have been followed through, with Cabinet Members attending BTSG meetings and defending their decision making and portfolios, with more detail to be provided next year in presentations.
Councillor Fisher noted his thanks to Councillor Boothroyd, Gerald Almeroth and Jake Bacchus.
The Chair thanked officers in the finance team and across the council, noting that these are challenging times in which officers have worked to produce a balanced budget.
The Chair noted the central challenge of temporary accommodation and in particular the challenges in Westminster with the private rented sector and ability to procure supply, but that there is a plan in place to address those.
RESOLVED: Cabinet approved the following recommendations to Full Council for consideration at its meeting on 6 March 2024:
Council Tax
Revenue Budget
Capital Programme
Reserves, Balances and Budget Estimates
Treasury Management and Investment Framework
Fairer Westminster Delivery Plan
Supporting documents: