Agenda item

This report provides an update on the overall preparation and proposals for the 2024/25 revenue budget, risks, financial resilience, and the impact of those proposals. It also 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, introduced the item that provided details on the proposals for the 2024/25 revenue budget – including the risks, financial resilience, and impact of those proposals. 

Councillor Ree noted that it had been a challenging time for local government, with central government grant reductions and high inflation, but despite the conditions, the Council had delivered a balanced budget that protected core services and continued funding for the areas that were unique to borough such as free home care, universal free school breakfasts, and the Law Enforcement Team. He explained this had been achieved through ruthless financial efficiency and reforming how services were delivered.

James Newman (Assistant Director of Finance) gave a presentation on the corporate budget, highlighting the following:

• The difficulties of the operating environment including inflation, pressures on household budgets, new legislative burdens, and uncertainty around local government funding.
• The key objectives of the financial plan were to protect statutory services, deliver services valued by residents, ensure people’s safety, and be a modern and innovative Council with strong financial governance and resilience.
• That council tax would increase by 2.99% (with a 2% Social Care uplift.), but a significant number of households in the borough would not pay the full amount due to discounts and exemptions. 

Bram Kainth (Strategic Director of Environment) gave a presentation of the budget for the Environment Directorate. The following points were noted:

Key budget changes that were highlighted included:

·       Additional investment for inflationary increases on both major contracts (minimum 4%) and council staff pay (3%)

·       Plus additional investment in services of £488k:

1.    new waste collection service (£278k) for garden waste

2.    continuation of the community and cultural events programme (£150k)

3.    ongoing contribution to the new H&F Black History Cultural Centre (£60k)

·       Savings of £1.55m for the whole Environment department

·       £1.35m savings relevant to EASP PAC:

1.   Thorough review of fees and charges (£200k).

2.   Service transformation and commissioning savings (£250k)

3.   Garden waste collection subscription service (£650k)

4.   Further efficiencies through roll out of wheeled bins (£250k)

Daniel Rochford (Head of Finance) gave a presentation of the budget for the Economy Directorate highlighting the following:

·       A Net Budget of £0.6m, balanced over last 4 years

·       £0.8m savings completed for 2022/2023

·       Officers had negotiated £98m Section 106 monies and there was excellent planning performance, including Planning consent for 134 homes

·       A Supplementary Planning Document (SPD) for small business workspace

·       Co-produced housing with carbon down a significant 80%

·       Officers working in partnership had leveraged £85m for affordable housing

·       The Industrial Strategy had created 8,100 jobs and £6.1bn investment

·       The Authority continued to provide excellence in adult-learning

Councillor Adam Peter Lang asked if he was correct in assuming that Hammersmith and Fulham had a relatively young population compared to other London Boroughs. And he commented on how this shaped priorities. He asked what demographic change if any there was. In response, Councillor Rowan Ree, Cabinet Member for Finance and Reform confirmed that the Borough was ageing and provided details on the ramifications this had for the budget, grant funding opportunities and future budget planning.

Councillor Adam Peter Lang highlighted the savings that were being made through the new waste management collection service. He confirmed he supported the additional investment in services including the garden waste, community and cultural events programme and the ongoing contribution to the new H&F Black History Cultural Centre. He suggested that officers might make how the Council used Section 106 money more prominent on the website.

In relation to the compensation for lost business rates, Councillor Ashok Patel asked for more detail to be provided and in particular what the enforcement policy was for collection. In relation to Appendix 4 of the report, he asked about parks usage and the distinction between state and private schools and also the difference in costs between burial and cremation.

In response, Councillor Rowan Ree confirmed it was a £60k contribution to the Black History Culture Centre and the Council was working in partnership with third sector providers to move the initiative forwards. In relation to business rates, he explained the differences between small and larger businesses and their rates. As smaller businesses paid less for their rates, these needed to be topped by central government. He assured the committee that the Council was using big data and analytics to improve collection rates and in relation to the cost of living, it was noted that the Council had frozen all charges in children’s, adult social care and housing services while other charges had risen with inflation. It was noted that the disparity between funeral costs related to burial plot / land ownership.

Bram Kainth, Strategic Director of Environment, confirmed that pitch usage within parks was very popular and so the council was having to prioritise these services to schools, and use a charge to control the amount of time pitches were available to non-state schools to use. With regards to burial fees and charges, Bram Kainth confirmed Hammersmith and Fulham’s charges were comparable to neighbouring Boroughs.

Councillor Jackie Borland asked why bulky household waste collection charges had increased from £30 to £45 for 10 items and was concerned that the rising costs might be prohibitive to some residents. In response, Bram Kainth explained that Hammersmith and Fulham’s allowance of up to 10 items for a set charge was generous compared to neighbouring boroughs, where the charges were comparable but for far fewer items. These costs also had to take account of the waste disposal costs.

Councillor Jackie Borland suggested that in future, perhaps officers could look at a sliding scale where costs would be less, if for example there were only five items. In response, Bram Kainth explained that in his experience, when waste disposal charges had risen, this had not resulted in increased fly-tipping. He also commented that most of the costs derived from the journey required to collect the waste, and so a sliding scale would not enable the Council to recoup its costs. He assured the Committee that waste collection costs would be closely monitored and kept under review.

Adding a supplementary question, in relation to Section 106 money, the £98 million was exceptional. She asked if this was guaranteed money which was already being spent, as some developments did not go ahead, and so asked where this money was in the pipeline. In response, Danny Rochford confirmed that S106 money was paid in instalments over a period of time and these were linked to a series of milestones within any such development. There was always a risk that some developments might not proceed as planned, so this could affect what monies come forward.

Councillor Jackie Borland enquired about £85 million which had been leveraged for affordable housing and asked how this had been achieved. In response, Danny Rochford provided details of how the relationships worked between the external bodies and the Economy Team to achieve grant funded schemes and confirmed that most of the £85million was grant funded money.

Councillor Liz Collins asked about events, encouraging visitors to the borough and in particular the economic value of the “grey pound”. She asked how this demographic was a factored into future budget planning. In response, Councillor Sharon Holder suggested this could be addresses in the next item.

The Chair, Councillor Rory Vaughan, welcomed the contribution to the new Black History Museum which reinforced one of the outcomes of the Cultural Strategy and he asked for the Committee to be kept informed of future developments. In terms of sports pitch hire, and specifically the tennis courts in Ravenscourt Park, he asked about block bookings, how this was monitored and to ensure residents had an opportunity to use these facilities.

The Chair mentioned the charge for garden waste and highlighted this was a topic which would require further information in the future. He noted the prevalence of garden bonfires / fly tipping and reiterated that the Council needed to be reinforce its messaging about disposing of garden waste responsibly.

In response, Bram Kaith, Strategic Director of Environment, confirmed that the Council wished to prevent bonfires, given all the hard work which was being done to improve air quality. In relation to fly-tipping, Bram commented that other boroughs which had introduced a garden waste service had not seen fly-tipping levels increase. With regards to tennis courts and block bookings, it was noted that this was a balancing act and officers were looking at ways to improve accessibility so that all parties had an opportunity to use them.

The Chair, Councillor Rory Vaughan asked officers to provide further details on the savings for corporate accommodation and how these would be reviewed and monitored over the course of the year. In response, Danny Rochford explained there were a number of pipeline opportunities that had already been identified, such as repurposing the fourth floor of 145 King Street to residential, renegotiating the Council’s property database contract, reviewing the repairs and maintenance budget for the entire corporate property portfolio and potentially making some amendments to the way in which rental income was set. He confirmed that, as April approached, the Property and Asset Management Team were compiling an Asset Strategy which would enable that target to be delivered.

Jon Pickstone, Strategic Director of Economy, confirmed that this would need monitoring in the short term and a variety of other areas such as being more energy efficient and relinquishing office space where the Council could, were part of the plan to save the Council money in the medium term.

In relation to Table 6 in the report. Summary of Savings, Councillor Ashok Patel noted £200k saved on a review of fees and charges which he felt was surprising given spending cuts over the last 14 years. He asked why this had taken so long. In response, Councillor Rowan Ree explained that fees and charges were reviewed every year, and the priority was to ensure the fees for core services, such as Adult Care, Children’s and Housing Services were frozen to assist resident residents during the cost-of-living crisis. It was noted that most other charges tended to fluctuate with inflation or where there was a commercial element, charges reflected market changes.

The Chair thanked Councillors Rowan Ree, Sharon Holder and all the officers present for their hard work in a very challenging environment to balance the budget. Officers were also commended for their clear presentations.

RESOLVED

1.    That the Policy and Accountability Committee (PAC) considers the budget proposals and makes recommendations to Cabinet as appropriate.

2.    That the PAC considers the proposed changes to fees and charges and makes recommendations as appropriate