Brent Council announces it has to cut a further £28 million from its budget

 In a press release published today, just fefore Full Council, Brent Council warns that it has to cut an additional £28 million from its budget:

Rising costs aren’t only hurting ordinary people. Most organisations are also feeling the strain of inflation, especially after the financial shock of the pandemic and Brexit.

 

The things that Brent Council needs to deliver – from building new council homes and maintaining the borough’s roads to statutory services like adult’s and children’s social care – are all becoming more expensive.

 

With the prices of basics, from food to fuel, rapidly increasing – many more families are also being pushed into poverty, meaning there are more people asking for both financial help and other forms of support from the council.

 

At the same time that demand for council services is rising, the money Brent receives directly from central government has been falling. 

 

In the 12 years since April 2010, Brent Council has needed to save £196million from its budget – as the money the council receives directly from central Government has been cut by 78%. 

 

Now, to make matters worse, the Government has said it will only confirm the money it plans to give local authorities for the next two years in December 2022, which makes it difficult for councils to plan. 

 

All of this means Brent now needs to save even more money in order to balance its budget. It is estimated that an extra £28million needs to be saved by 2025, according to a report that went to the council’s Cabinet in July.

 

 

Muhammed Butt, Leader of Brent Council, said:

 

The problems with the UK economy and the cost of living crisis are hitting hardworking people in the pocket and councils are no different.

Massively rising costs, increasing demand for what we do and less money from central government means we now need to make cuts. There is no doubt that finding £28million in savings on top of the £196million we have already saved will not be easy.

 

We are in a better position than many councils thanks to the massive strides we have taken over recent years to modernise and transform the council. We have recently saved money by streamlining senior management but there is more to do.

 

We will need to change how we work in many areas while trying to protect the frontline services that you or your mum, dad, grandparents or children rely on as much as possible.

 

In the autumn we will be launching a full budget consultation and we will need residents to be active participants in helping us to make the tough choices facing us.

 

Brent Council Budget approved

 As expected the Budget and Council Tax rise was approved yesterday  by Full Council.

The Conservative amendment was lost with the 3 Conservatives voting For and Labour and the Lib Dem voting Against.

Lib Dem Cllr Anton Georgiou was allowed to move his budget proposals and he was the only vote For.

The Labour Group  budget was approved with only Conservatives and the Lib Dem Against. Labour councillor Cllr Gill abstained.

Some councillors appeared to be  missing during the roll call (recorded vote).

Brent Lib Dem councillor puts forward alternative proposals before Monday's Budget setting meeting

It is some time since Brent Liberal Democrats have presented a formal alternative budget to that of the ruling Labour Party and even with a Liberal Democrat voted in at the Alperton by-election just over a year  ago this is still the case and his proposals will not be voted on. Cllr Anton Georgiou will have just 3 minutes to speak at the Council Tax and Budget Setting Meeting at 4pm tomorrow. LINK TO LIVE BROADCAST

 

Brent Labour has 59 councillors to the Conservative's 3 and the lone Liberal Democrat so approval of the budget is a formality. However, in the interests of democracy (not because I approve of the proposals) I think it is right that residents should be able to see and discuss the alternative proposals. I published the Conservative proposals last week HERE.

 

Labour’s budget includes a Council Tax hike of 6%, 4.99% from Brent Council and a further approximately 1% from Labour Mayor Sadiq Khan. Cllr Georgiou, in his proposals, argues that this can be and should be halved. 

 

Cllr Georgiou’s proposal also seeks to spend more money on the issues local people care about and invest in areas that will lessen the inequalities that have been exposed by the pandemic, particularly for Brent’s young people.  

 

Cllr Georgiou said:

 

I represent Alperton, a ward that has been hit very hard by the pandemic. Many residents are really struggling right now which is why I am alarmed that the Labour Council have proposed to hike Council Tax by so much.  

 

It is wrong to dump further financial burdens on local people, particularly when, as I outline in my proposals, money exists in the massive revenue reserves to halve the Council Tax rise. Brent residents have already paid for these reserves over the years, and it is impossible to justify asking them to pay even more when they don’t have to.

 

In addition to his plans to at least halve the Council Tax rise, Cllr Georgiou wants to see more money allocated to clean up Brent, to urgently repair pavements in small streets and overlooked areas and to make cycle routes safer.  

 

 Proposals in detail (click bottom right square for full page view)

 

 

 

Brent councillor allowances frozen as Tories propose axing 2 Cabinet posts

The basic Brent councillor allowance and special allowances will not be increased this year in line with the pay freeze in the public sector.

Meanwhile the Conservatives in their Alternative Budget have suggested a new allowance range and the deletion of two Cabinet positions. LINK 

 Conservative proposals. Note the SRAs (Special Responsibility Allowances)  are in addition to the Basic Allowance.

Basic Allowance (all Members): £10,000.00

Leader SRA: £30,000.00

Deputy Leader SRA: £20,000

Cabinet Member SRA :£20,000 and delete x 2 cabinet posts

Opposition Leader SRA: £8,000

All other SRAS to remain at current level.

 

The 3 person Conservative Group also make the following proposal which includes a smaller Council Tax rise than Labour's 4.99%:

 

Only 10% of on-line respondents agree with Brent's budget proposals as Council Tax rises by 5.99%, but to be fair only 29 people responded!

 

 A key table from the on-line consultation

Tomorrow morning's Cabinet meeting will approve the budget proposals set out earlier which includes an overall Council Tax rise of 5.99% and £15.1m cuts. 

 

Council Tax

 

GLA Precept

In theory the budget is not approved until it goes to a full council meeting but in effect it will be approved tomorrow as Labour hold 94% of Brent Council seats and most Labour members won't say 'Boo to a butt.'

Usually the three person Conservative opposition fail to put forward anything like a fully costed alternative budget. This will be the first time the lone Liberal Democrat will have contibuted to a budget debate.

Often the debate turns into a fairly predictable political dogfight with initial grandstanding by the Council leader degenerating into political point scoring as if he is on the national stage - which is where he wants to be, of course.

The interests of residents get lost in the sound and fury.

 Much will be made of the fact of consultation - a Scrutiny Task Force, Audit and Standards Committee, two virtual Brent Connects Meeting and an on-0nline consultation but the Report by Minish Patel, airily states:

Having considered the various comments made, including through the consultation, scrutiny and equalities processes, officers have been instructed to proceed with the budget proposals as previously set out.

It's not entirely  clear who did the considering and who issued the instruction.

The fact that 59% of the on-line respondents disgreed with the budget proposals makes no difference and might explain why so few take part. Even if more did, the Council has things covered:

Comments and feedback on the budget consultation demonstrates a wide range of views, many common viewpoints and emphasises the fact that Brent residents are concerned over what the expenditure reductions mean not only for them but also for the wider community. 

And anyway:

All of these consultation responses are important. Members need to have regard to them, but are not obliged to follow the suggestions made. It is relevant to note that the consultees are, statistically speaking, “self-selecting” and therefore not necessarily reflective of opinion in the borough as a whole, nor are they necessarily statistically significant.

Although...

On the other hand, the people who have responded have chosen to take the time to review the Council’s proposals and to contribute their thoughts, and often their views will be representative of the views of a much larger number of people.

Notice that individual councillors and backbenchers are not mentioned in the list of consultees - that would have happened at a Labour Group meeting behind closed doors with attendees instructed not to leak to blog writers.

Concern over the plight of residents faced with another increase in their Council Tax is addressed in this paragraph:

While it is acknowledged that increasing Council Tax will be difficult for some households, it should also be recognised that the Council continues to invest in the Council Tax Support scheme, which provides over £30m of support for around 28,000 households who are financially vulnerable. In addition, the Spending Review announced £670m of new funding in recognition of the increased costs of providing local council tax support. Brent’s share of this has been confirmed as £4m and will be used to support economically vulnerable people and households in the borough.

Suggestions are made each year that the Council should use some ots reserves to fund basic services rather than increase the Council Tax. Finance Officers address the issue of reserves in this section of the report:

Brent held total reserves of £398m as at 31 March 2020. On the face of it this would appear to be a high figure, but the following analysis shows that in practice the figure for all practical purposes is substantially lower. £264m (66%) of these reserves are for the funding of the Council’s ambitious capital programme. £30m (8%) is legally ring fenced for bodies such as our maintained schools and the Housing Revenue Account. £69m (17%) of reserves have been earmarked for a specific purpose or future expenditure commitment. This includes reserves managed by departments (for example unspent government grants with ring fenced commitments set aside to meet expenditure pressures) and reserves used to smooth out expenditure that by its nature will vary considerably from year to year and avoid uncontrollable under and over spends, for example insurance claims, PFI contracts, redundancy and pension costs. £21m (5%) are reserves that are earmarked to manage the future funding risks and it was primarily set aside to manage the potential impact of the Fair Funding Review. As a result of the impact of COVID-19, this reserve may be required to manage any one off pressures arising that cannot be met through the growth built into the budget, as set out in section 5.16. Finally, £15m (4%) is a general reserve which is held as a contingency against unforeseen events (for example unexpected in-year overspends, failure to identify sufficient savings to balance the budget in-year or future funding risks) and to ensure that the Council has sufficient funds available to meet its cash flow requirements. The general reserve is relatively low when compared to other London Boroughs and is only c5% of the Council’s net budget.

The Cabinet Meeting is on Monday February 8th at 10am and can be viewed via this LINK

 Details of the savings (cuts?) and other documents can be found HERE 

Brent Council Tax and Council Rents to rise but Council says it is not as hard hit as some

 

Brent Council's Overall Financial Position
 

Next week's Cabinet will discuss proposals for the 2021-22 Council budget.  The report to Cabinet LINK lists many uncertainties caused by the pandemic and lack of clarity over government funding.  However, the report states:

The new proposals for 2021/22 and 2022/23 are designed to limit, as far as possible, service reductions and the impact on front line services particularly during these challenging times. For example, the new proposals include expected gains from re-procurement of major contracts, service transformations and efficiency savings. This does not mean that delivering these planned savings, if approved, will be managerially straightforward, or that front- line services will be entirely unaffected, or that they can be achieved without staffing reductions, but it is nonetheless the case that the new proposals set out in this report do not include the wholesale cuts to services that many Councils are considering and indeed implementing. 

Consultation on the proposals will take place between this month and February 2021. 

Features of the budget include

 A Council Tax increase of 4.99%, making a Band D Council Tax of £1,378.26 (for the Brent element). The GLA precept is unknown at this stage and is subject to their own decision making and consultation processes.

New budget savings proposals of £5.1m to be delivered between 2021/22 and 2022/23. LINK

 

An increase of Council rents of 1.5% (figures below are per week)

 

The report admits that the Council Tax rise will hit people. It refers to the Council Tax Support scheme which they expect to be used more but not all of those hit by the rise will be eligible. Similarly more people may fall into rent arrears when so many are hit by job losses and income falls because of Covid19.

 

Three possible scenarios are given for pressure on services ranging from additonal costs of £5m to £20m

 

 Officers estimate that 63% of the planned cuts are on track to be realised, while others will be realised in future years.  One cut that was due was via a review of homecare and placement packages, re-commissioning day care (£250,000).

 

The report states:

This saving is delayed because the re-commissioning of daycare has been affected by Covid-19 as daycare will have to be delivered in a different format as a result of the pandemic. It is expected that these savings will be achieved through reduced transport usage.

A disability campaigner told Wembley Matters:

Although there is very little detail it looks like the only  2 day centres left for disabled people will not reopen and all the council daycare will be in a new format.  But the. clue is they will save £250k in transport costs from the remainder of this year and another £250K next year.  That means with no daycentres, no transport is needed to pick the disabled people up, as most of them have mobility issues.

So who will speak up for the most severely disabled people in Brent, if not Wembley Matters?  It seems that nearly every London borough has an organisation representing disabled people but Brent does not have one, apart from Brent Advocacy Concerns which no longer have the resources to challenge the council anymore.

The report states that these cuts are 'technical' and therefore don't have to be consulted on.  They are included for transparency:

The Freedom Pass saving depends on the progress of Covid and a return to normality is likely to increase demand again.

Schools are funded separately though the Dedicated Schools Grant (DSG) calculated by the National Funding Formula. Schools have incurred increased costs because of Covid and there has been some central government financial support but this has now ended, although additional money still has to be spent on additional cleaning costs, and supply cover for staff self-isolating or on sick leave. Covid restructions means that lettings income has dropped through the floor.

However, many were already facing financial problems because of the school funding crisis and the unfunded pay increase. More are expected to fall into deficit next year. The situation will worsen because the High Needs Block of the DSG is not keeping up with demand so the  Schools Forum will be asked to take money from the Schools section of the budget to additionally fund the High Needs in the borough.

 
High needs funding is intended to provide the most appropriate support package for children and young people (from early years up to aged 25) with special educational needs and disabilities in a range of settings, taking account of parental and student choice.

The report states:

The pressure in the HNB has led to the DSG being in a £4.9 million deficit carried forward from 2019/20 and further forecast pressures of £4.2 million in 2020/21 will increase the deficit position to £9.1 million. The DfE require local authorities with an overall DSG deficit to present a plan to recover the deficit over a number of financial years. To recover the deficit in the medium to long term, options being reviewed by the task group set up by the Strategic Director of Children and Young People include;

Looking to establish more Special Educational Needs & Disability (SEND) provision in the borough as part of the School Place Planning Strategy Refresh including developing new Additionally Resourced Provisions (ARPs);

Ensuring there is full cost recovery from other local authorities that place pupils in Brent special schools including administration and other specific costs;

Review of the DSG funded SEN support services currently underway.

 One thing is clear - without any action by the Government schools face a very tough time financially in 2021-22 as will most Brent residents.

 

 

 

UPDATE: Cuts of £7m and Council Tax rise of 3.99% approved by Brent Council

UPDATE: Budget and Council Tax rise approved with 4 against and 2 abstentions

In the early days of austerity and government cuts to local authorities there were protests at Brent Town Hall and later at the £100m Civic Centre.  These days 'savings' (which are often direct cuts in services or reconfiguration of existing services to save money) go through with little protest.

Tonight £7m will be wiped off the budget with Community and Wellbeing facing 'savings' of £4.2m  and Children and Young People £1.6m).  The latter includes £1.5m saved by closing some Children's Centre and creating hubs instead.  Savings are to be made in Adult Social Care and Day Care commissioning although there are questions over whether this can be delivered without providers withdrawing from the market.

Council Tax will be raised by 3.99%.

The Council Tax Setting and Budget Setting meeting started at 6pm and is live-streamed
 

Scrutiny makes recommendation that Cabinet ring fence £700k for tree replacement and planting

Scrutiny Committee last night heard a presentation about street trees from Alison Durant of the Brent Trees Group and considered a recommendation that some of the one-off £700,000 made from the sale of additional cemetery space could be used to plant and maintain trees.

The recommendation had been made in the Budget Scrutiny Report:

To acknowledge the great work of the department in achieving these savings, we believe that this money should be ring fenced to be spent on a project with an environmental theme. In line with the council’s priorities, and the fact that Brent has recently declared a climate emergency, the obvious area for spending this money would be on improving air quality. There are actions that can be undertaken by the authority to improve air quality where a one-off capital injection of £700,000 would make a significant difference. 

We believe the most notable is in the area of tree planting. The council currently does not have the revenue budget to replace all diseased or dying trees it removes (outside of those removed as part of the footway improvement plan), or to plant all of the mature trees it would like to. The presence of mature trees on our streets can help to reduce levels of carbon in the atmosphere and significantly reduce storm water runoff. We will therefore be recommending to cabinet that this pot of money is ring fenced and invested in a tree planting scheme.

Responding Cllr Margaret McLennan, deputy leader and lead member for Finance and Resources, said that it could be considered but that the first obligation of the Council was to provide hard-pressed statutory services.

In her presentation Alison Durant made the following points:

• Brent views trees in terms of their immediate and future potential cost to the council.
• The council fails to calculate the value of its mature street trees.
• Brent Trees public meeting with the council was attended by 150 residents, which demonstrates the strength of feeling about the lack of care of street trees, removal of healthy street trees, lack of replacement of trees removed, and stumps being left in the place of removed trees.
• At the public meeting we made a presentation on the value of mature trees: amenity, carbon sequestration, air quality control, air cooling, storm-water run-off, to name a few.  Small replacement trees and new small trees will provide relatively little in terms of climate change mitigation compared to large mature trees. 
• We have a climate crisis; Brent Council has declared a “climate and ecological emergency”; Brent aspires to be the “cleanest and greenest” London borough; and yet it removes mature healthy trees that mitigate climate change in order to save money.
• Brent Council has historically underfunded trees; the council has admitted that it removes trees because it can’t afford to maintain them and yet the environment department underspends year after year. 
• There is a compelling case for committing additional funds to the maintenance of street trees, replacement of street trees, replacement of street trees removed historically.

Cllr Nerva pointed out that there were 12,000 tree stumps in Brent that needed to be removed. He suggested that there needed to be a more efficient use of Neighbourhood CIL money for trees perhaps led by an application from the Environment  Department and then allocated according to a set of criteria to local neighbourhoods. Cllr Tatler said she was talking  with Cllr Krupa Sheth (Lead Member for Environment) on how to approach the planting of trees.  The first priority should be to plant in the borough's areas of poor air quality.  The Environment Department was looking at methods of establishing a monetary asset value for all of the borough's trees.

Cllr Nerva is leading a Scrutiny Task Group on trees. Contact:
cllr.neil.nerva@brent.gov.uk

Scrutiny's recoemmendations will be considred by the Cabinet at its Budget meeting.