Agenda item

This report sets out the budget proposals for the services covered by this Policy and Accountability Committee (PAC). An update is also provided on any proposed changes in fees and charges in the budget.

Councillor Rowan Ree (Cabinet Member for Finance and Reform) expressed his appreciation for staff in the Finance team who had worked out the current Budget under the difficult circumstances of rising rates of inflation and bank interests and a tight timeframe. He also highlighted the contributions of Cabinet Members in the tough process. The Budget had based on realistic assumptions to achieve savings and efficiency.  Councillor Ree said he was proud that despite a 56% cut in general government grant funding as compared to 2010/11, the London Borough of Hammersmith and Fulham (LBHF) was able to offer unique services such as providing free breakfasts to school children, abolishing home care charges, establishing a local Law Enforcement Team to keep the streets safe and clean and stopping the use of bailiffs to collect Council Tax debt. In view of the cost-of-living crisis which was affecting residents across the borough, the Council had included in the Budget new provisions of nearly £1 million (m) to help tackle the rising cost of living.

Corporate Budget

Andre Mark (Head of Finance - Strategic Planning and Investment) presented the item which covered the Budget 2023/24 and Mid Term Financial Strategy (MTFS) 2024/25+. He outlined the national and local strategic operating environment, proposed revenue budget strategy 2023/24 and the key principles, Council Tax considerations, major savings proposals and growth allocations, and a Reserve summary. Members noted the dates for the proposals to be presented to the relevant committees, the Cabinet and Full Council.

Councillors Laura Janes and Nicole Trehy expressed thanks for the hard jobs of drawing up the Budget at a tough time and appreciated the excellent presentation.

Questions from the floor:

Caroline Kelly remarked that as the military had confirmed they shall take control of the weather in 2025, she questioned the establishment of this Policy and Accountability Committee (PAC). Councillor Rowan Ree referred to the creation and monitoring of new policy development via the PACs, the Climate Change and Ecology PAC was established at the Annual Meeting of the Council in May 2022 to cover key areas of concern in addition to “Children and Education”, “Health and Adult Social Care” and “Housing and Homelessness” etc. He added that the current meeting was looking at the departmental revenue budget related to the Environment. Members welcomed residents’ submission of relevant information for their consideration.

Helen Dell (Climate Change Commissioner) asked about the increase in the net cost of borrowing. Andre Mark said that it referred to the cost of borrowing rather than the borrowing per se.

Departmental Budget

Bram Kainth (Strategic Director of Environment) presented the Revenue Budget 2023/24 of the Environment Services and outlined a wide range of universal services delivered to residents, the Environment recent achievements, the key budget changes relevant to this PAC.

In reply to Councillor Janes’ questions, Bram Kainth clarified that the 301,000 books were issued for the library services.  Regarding the roll-out of food waste collections, Bram noted that the new services of food waste collections formed part of the new waste collection and street cleansing contract, and discussions were ongoing with the new contractor as to when and how exactly this would be rolled out. He undertook to inform members about the implementation timetable once it was known.

ACTION: Bram Kainth  

Councillor Jose Afonso noted that the total net budget for controlled parking account for 2023/24 was a projected surplus of £31,600 and asked how much of this is related to traffic fines.  Bram Kainth agreed to provide this information. 

ACTION: Bram Kainth

In response to Councillor Afonso’s question, Kellie Gooch (Head of Finance – Environment) advised that under the portfolio of Leisure, Sport and Culture, the budget included all expenditure, including overheads and staffing, and confirmed that the contract for provision of the Council’s leisure centres was a net-income generating contract, therefore provided at no cost to the Council, and it generated a return.

Councillor Afonso was concerned about the risk associated with the works on the Hammersmith Bridge. Bram Kainth explained that to ensure the bridge could be reopened to traffic at the earliest opportunity without any delay, the Council was progressing the works and incurring substantial expenditure at risk, until government funding was confirmed.

Councillor Ross Melton asked about the anticipated reduction in waste tonnages. Bram Kainth advised that the borough generally had low residual waste figures, with some changes during the pandemic, but the general projected trend over a longer period of time was for waste tonnages to improve. Waste disposal costs reduced by disposing of less overall and by moving residual waste to recycling.

Questions from the floor:

Responding to Wilf Macdonald Brown’s questions, Bram Kainth pointed out that the breakdown of the parking account was published on the Council’s website on an annual basis.  As regards bicycle hangers and cycle parking arrangements, they were funded through the capital budget, and investment on them would be made once resources were available.  At Wilf’s request, Bram agreed to send him the details of revenue raised by these facilities.

ACTION: Bram Kainth

Pat Tookey (Climate Change Commissioner) was concerned about the Council’s measures put in place to decarbonize the borough and meet the target of net zero emission by 2030. She said that in addition to schemes such as Low Traffic Neighbourhoods, residents were keen to know the progress of other projects.  For example, the roll-out of food waste collection services to the uncovered areas in the borough further to the pilot ran since 2020.  Moreover, apart from retrofitting the public housing, the measures, if any, devised to support private homeowners to retrofit their properties.  Pat expected to see the commitment of this Committee in informing residents regularly the borough’s positions in the pathway to meet the 2030 target and the timeframe of the steps to be taken.

Councillor Ree explained that the current Committee meeting was examining the revenue budget for the day-to-day activities. The projects mentioned were related more to capital investment which was considered as part of a separate process, and a Climate Financial Strategy was being developed. He reckoned that 75% of the emissions originated from the housing stock and retrofitting the properties to become more energy efficient were taken care of under the Housing Revenue Account.  Councillor Ree said that the Council was committed to hitting the 2030 target and highlighted the borough’s green credentials including being accredited by an independent body for having the best climate emergency plan in London.  The Council also had the highest concentrations of electric vehicle charging points in the country and air quality monitors.  The Council was determined to make a difference to meet the expectations of the residents.

Pat Tookey appreciated the plans however she was concerned about their delivery, including the timeline and the estimated impact/extent of decarbonisation.  Taking note of her concerns, Councillor Melton thanked the contributions of Pat as well as other residents for holding Committee members to account.

Caroline Kelly questioned investment on waste management as the contractors had made huge profits from the energy generated from waste.  In response, Bram Kainth said that the LHBF had engaged contractors through tendering to collect waste from residents’ doorsteps to waste depots.  The LHBF was one of the four boroughs under the West Riverside Waste Authority (WRWA) which was responsible for waste disposals including managing the contractors.  He noted that there were different ways of disposing wastes from depositing at landfills to burning them for energy.

Councillor Wesley Harcourt (Cabinet Member for Climate Change and Ecology) referred to the processes of waste disposal in which recyclable items, such as metals, plastics and paper, were separated from the general waste before disposal.  The value of the recyclable items depended on the market conditions. On electricity from waste, Councillor Harcourt said the profit, if any, was subject to contract terms and market conditions, as well as the government’s introduction of electricity generating levers. He added that WRWA was a statutory, non-profit making body established under the Parliament.

Anna Maynard noted that schools could save about 6% from their food budget by going vegan.  Bram Kainth remarked that the LBHF was always looking at every opportunity to decarbonise the footprint, and plant-based diet was one of them.

RESOLVED

That the Committee considered the budget proposals and made recommendations to Cabinet as appropriate.