Agenda item

To agree the 2024-25 general fund budget to be recommended to council assembly. To note the medium term financial strategy (MTFS) update, council tax setting and capital programme.

It was not possible to circulate the report five clear days in advance of the meeting. The chair agreed to accept the item as urgent because the cabinet was required to prepare a budget proposal for submission to council assembly.  This was the last cabinet meeting before council assembly on 21 February 2024 and the council tax setting committee on 23 February 2024. The Local Government Act 1992 requires that billing authorities complete and approve their budgets and set a council tax before 11 March immediately prior to the start of the financial year on 1 April 2024.

Councillor Ian Wingfield, chair of the overview and scrutiny presented a summary of the committee’s recommendations to cabinet.

RESOLVED:

That the following recommendations be agreed for council assembly:-

1.  The balanced general fund budget proposals for 2024-25.

2.  The general fund budget options proposed to achieve a balanced budget for the period 2024-25 and to significantly close the budget gap for the period 2025-26 to 2026-27 (Appendices B to E of the report).

3.  The refreshed general fund capital programme for the 10 year period to 2033-34 (Appendix J of the report) and the refreshed housing investment programme (HIP) for the 10 year period 2024-24 to 2033-34 (Appendix K of the report).

4.  In accordance with Sections 30 and 36 of the Local Government Finance Act 1992, the local council tax amounts shown in table 3 of the report.

That the following be approved:

5.  The housing revenue fund budget for 2024-25 (paragraphs 72-83 of the report).

6.  The final fees and charges schedule at Appendix F of the report.

7.  The proposed amendment to Section 3C, paragraph 13 of the council’s constitution to increase the threshold at which cabinet approves disposals of leasehold or freehold interests in property and land from £750k to £3m, noting that officers will review the governance arrangements within our existing policy framework.

That the following be noted:

8.  That the final Local Government Finance Settlement has not been published at the time of writing, any changes from the provisional settlement published on the 18 December 2023, will be set out in the 2024-25 budget report to council assembly on 21 February 2024.

9.  The update to the medium term financial strategy 2024-25 to 2026-27, and the current expected cumulative funding gap of £5.4m and £10.8m for 2025-26 and 2026-27 respectively.

10.  That the December 2023 cabinet report and budget option schedules were considered by the overview and scrutiny committee on 22 January and 23 January 2024 and that the recommendations arising and officer responses are included at Appendix I of the report.

11.  The departmental narratives and equality impact assessments at Appendix A of the report.

12.  The climate report and budget equality analysis report 2024-25 (Appendices G and H of the report).

13.  That the Mayor of London draft budget for 2024-25 includes a proposal to increase the GLA Council Tax precept by 8.6%, equivalent to a £37.26p increase for a band D property.

14.  The GLA council tax precept is due to be set on the 22 February, one day after council assembly sets the budget for Southwark, therefore (as in prior years) a council tax setting committee will be convened for 23 February 2024.

15.  The strategic director of finance comments on the adequacy of the reserves and the robustness of the estimates in the budget in paragraphs 117-119 of the report.

NOTE: In accordance with overview and scrutiny procedure rule 16.2, (a) (budget and policy framework) these decisions are not subject to call-in.