Agenda, decisions and draft minutes

To receive any apologies for absence.

Apologies for absence were received from Councillor Jeet Bains. Councillor Tony Pearson was in attendance as a non-voting representative.

To approve the minutes of the meeting held on 8^th January 2025.

The minutes of the meeting held on 22^nd January 2025 will be presented at the 26^th March 2025 Cabinet meeting.

The minutes of the Cabinet meeting held on Wednesday 8 January 2025 were approved as an accurate record of proceedings.

Members and co-opted Members of the Council are reminded that, in accordance with the Council’s Code of Conduct and the statutory provisions of the Localism Act, they are required to consider in advance of each meeting whether they have a disclosable pecuniary interest (DPI), an other registrable interest (ORI) or a non-registrable interest (NRI) in relation to any matter on the agenda. If advice is needed, Members should contact the Monitoring Officer in good time before the meeting.

If any Member or co-opted Member of the Council identifies a DPI or ORI which they have not already registered on the Council’s register of interests or which requires updating, they should complete the disclosure form which can be obtained from Democratic Services at any time, copies of which will be available at the meeting for return to the Monitoring Officer.

Members and co-opted Members are required to disclose any DPIs and ORIs at the meeting.

-      Where the matter relates to a DPI they may not participate in any discussion or vote on the matter and must not stay in the meeting unless granted a dispensation.

-      Where the matter relates to an ORI they may not vote on the matter unless granted a dispensation.

-      Where a Member or co-opted Member has an NRI which directly relates to their financial interest or wellbeing, or that of a relative or close associate, they must disclose the interest at the meeting, may not take part in any discussion or vote on the matter and must not stay in the meeting unless granted a dispensation. Where a matter affects the NRI of a Member or co-opted Member, section 9 of Appendix B of the Code of Conduct sets out the test which must be applied by the Member to decide whether disclosure is required.

The Chair will invite Members to make their disclosure orally at the commencement of Agenda item 3, to be recorded in the minutes.

There were none.  

To receive notice of any business not on the agenda which in the opinion of the Chair, by reason of special circumstances, be considered as a matter of urgency.

The Executive Mayor and Cabinet RESOLVED to;

2.1 Endorse that the Council consider a selective licensing scheme in the private rented sector and delegate authority to the Corporate Director of Housing, in consultation with the Corporate Director of Sustainable Communities, Regeneration and Economic Recovery, the Executive Mayor and the Cabinet Member for Homes, to evaluate a potential scheme and, if appropriate, propose and consult on such a scheme.

2.2 Note that any final proposals, following consultation, will be reported to the Executive Mayor and Cabinet for a decision.

Selective Licensing in the Private Rented Sector in Croydon Statement of intent.

The Executive Mayor introduced the report noting the Council’s intention to adopt the selective licensing scheme aimed at improving housing standards in Croydon. The scheme would make landlords more accountable, improve housing standards and protects tenants from exploitation. With effect from 23 December 2024, a new Government General Approval came into force and Local housing authorities in England were no longer required to obtain confirmation from the Secretary of State before implementing a selective licensing scheme of any size.

Benefits to the scheme would be prevention of health and safety risks, reduced anti-social behaviour and improved community welfare. Support for good landlords while enabling action against negligent ones, better homelessness prevention and reduced evictions.

It was noted that the Cabinet was being asked to endorse the consideration of introducing a selective licensing scheme. Consultation with residents and landlords would take place and the final proposal would be brought back to Cabinet for approval.

Cabinet Member for Homes Councillor Lynne Hale emphasised the significant role of the private rented sector in meeting housing demand in Croydon, housing around 26% of the borough’s residents. While many private rented homes were of good quality, based upon complaints and initial stock condition survey works some were of poor quality and in unsafe condition. Dependent on the outcomes of the stock condition survey the Council planned to act swiftly on poor housing conditions and explore measures, including the potential introduction of a selective licensing scheme. The Council was keen to work closely with landlords to drive up standards in housing and communities and any proposals would be evaluated through consultation with residents and landlords.

Leader of the Opposition, Councillor Stuart King advised that the opposition had formally requested budget information on the resources required to introduce the selective licensing scheme in January 2025 and the request remained unanswered. It was felt some may query whether this confidential request had influenced the report and it was highlighted that the commitment to consult on options for a selected licensing scheme within the Council’s housing strategy had been amended by Labour councillors.

It was welcomed that work was now beginning and clarification was sought regarding the consultation's start date and whether all members would have opportunities to feed into the scheme's development.

The Executive Mayor confirmed they rightly had no knowledge of the opposition group requests for information. The scheme had been under consideration for some time and owing to the financial pressures and changes made by the government in December, the Council was now taking the project forward. It was confirmed that Members would be informed of the consultation plans before it was shared publicly.

The Executive Mayor and Cabinet RESOLVED to;

1. Receive the recommendations arising from the meeting of the Health and Social Care Sub-Committee on 15 October 2024 (Appendix 1) and the Scrutiny & Overview Committee on 19 November 2024 (Appendix 2).

2. To provide a substantive response to the recommendations (a Scrutiny Stage 2 Report) at the Cabinet meeting on 7 May 2025.

Chair of Scrutiny and Overview Committee, Councillor Leila Ben Hassell advised of the Committee's important role in scrutinising the budget setting process. This had started in October 2024 with a review of the Medium Term Financial Strategy and Budget setting proposals. The Scrutiny Sub-Committees had identified areas of the budget setting process to explore in further detail and this had taken place at Sub-Committee meetings during January and February 2025.

Thanks were extended to officers and members of the Sub-Committees for their work. Concerns regarding the late provision of budget papers for 3 of the 4 Sub-Committees were noted and it had been agreed by the Executive Mayor and Chief Executive to resolve this in future.

There were concerns about the Council's request for £136 million in capitalisation direction and also regarding whether residents understood the Council's precarious financial position in the context of the national local government crisis. 

At the Scrutiny and Overview Committee meeting held on Monday 10 February 2025 the Committee's considerations had included whether the budget was deliverable, if there were any unacceptable risks, the accuracy of the assumptions made and the potential impact on service users and the wider community.

The Committee had agreed with the Council's Section 151 Officer that the budget was not sustainable and was not good for Croydon. The increased risk of generating more toxic debt due to the significant capitalisation direction request and the reduction in assets available for the Council to sell was highlighted.

The Committee had sought assurance regarding the assumptions and forecasting within the budget and it welcomed the continued improvements in data collection and analysis across the Council to better support the budget setting process.

The Administration's commitment to not utilise the full amount of capitalisation direction requested unless needed and with robust assurance criteria, was welcomed by the Committee. However it was felt this was reliant upon the Council's delivery of the Future Croydon Transformation programme and given the ambition of the programme in the current context, felt this presented further risk. 

The Committee was reassured by the Government's recognition of Croydon's unique financial position and financial improvement journey since 2021.

The Committee welcomed the independent review of the budget setting process as recommended by Scrutiny in the previous year and the efforts made to include a wider range of voices in the consultation, despite response rates being lower than the previous year.

Councillor Ben Hassell commented that they were pleased to see recommendations accepted or in progress. The recommendation arising from the Homes Scrutiny Sub-Committee regarding higher numbers of staff was highlighted. The Housing service was commended for its delivery of the HRA Business Plan for 2025/26.

Cabinet Member for Finance, Councillor Cummings advised of the key role of Scrutiny in scrutinising the budget setting process and Scrutiny forming a key part of the assurance process. The presence of risk regarding the Council's transformation plans was clarified as being inherent in such projects and while there was risk involved, creating a more efficient Council  ...  view the full minutes text for item 5/24

The Executive Mayor and Cabinet RESOLVED to;

1.    Approve the responses and action plans attached to this report in Appendices 1 & 2;

2.    Delegate authority to the officers identified in Appendices 1 & 2 to report back to the Scrutiny and Overview Committee, or relevant Sub-Committee, within the periods specified in the agreed responses and action plans, and on progress made in implementing any action plan.

Please see minutes of Scrutiny Stage One above.

The Executive Mayor and Cabinet RESOLVED to;

1.    Approve the responses and action plans attached to this report in Appendices 1 & 2;

2.    Delegate authority to the officers identified in Appendices 1 & 2 to report back to the Scrutiny and Overview Committee, or relevant Sub-Committee, within the periods specified in the agreed responses and action plans, and on progress made in implementing any action plan.

The Executive Mayor and Cabinet RESOLVED to;

2.1. Consider the consultation undertaken in respect of the Target Operating Model and the equality implications, all set out in Section 8 and 10.8 to 10.12 of the report.

2.2. Approve the Town Centre Vision described in Section 5 of the report.

2.3. Approve the adoption of the new Croydon Target Operating Model described in Section 6 of the report and attached at Appendix 1.

2.4. To note that for prudent programming and budget setting purposes £30.8m of one-off investment has been included in the Capital Programme and savings rising to £27.7m per annum by 2028-29 have been included in the MTFS. These sums will be reviewed in the September 2025 update to the MTFS.

2.5. Delegate authority to the Chief Executive in consultation with the Executive Mayor, to implement the new Croydon Operating Model including the allocation of approved budgets to specific programmes and projects as required.

The Executive Mayor welcomed the Council's strategic partners from BCG, Newton and Empower to the meeting.

The Executive Mayor introduced the report advising of the improvements already made in the borough, validated by the LGA Corporate Peer Challenges and Ofsted.

The Future Croydon target operating model set out a new vision for the Council, with the following themes:

• Helping to restore a sense of pride in Croydon as a place
• Working even more closely with partners
• Acting effectively as 'One Council'
• Organising to become the most cost-effective council in London

A revitalised town centre was also central to the vision and included:

• Transforming North End into a vibrant retail, residential, and leisure hub.
• Expanding the Cultural Quarter, anchored by Fairfield Halls.
• Reviving the Heritage Quarter to celebrate our rich history.
• Showcasing Croydon's rich heritage and cultural offer.

It was the intention to attract new investment and build stronger partnerships with Homes England, the Greater London Authority (GLA), Transport for London (TfL) and private sector partners. The strategy required a £42 million investment over four years which was expected to generate cumulative savings of £133 million by 2028-29.

Assistant Chief Executive, Elaine Jackson thanked everyone involved in the development of the programme which had included the Council's strategic partners, staff, members and residents with engagement across the borough. There had been support from Trade Unions, business partners and the Voluntary Sector, Community and Faith Sector.

The programme would realise more digital solutions including digital contact with the Council for residents. Based upon resident feedback, residents would receive more support from the voluntary and community sector. The plans would contribute to stabilising the Council's financial position.

Leader of the opposition, Councillor Stuart King commented that the town centre vision element to the report required more detail and whilst sensible to focus on unique features in Croydon, the suggestion that only Croydon had a diverse culture and community and the claims that Croydon had some of the best green spaces in the world were queried.

The opposition welcomed the development, agreed with the four key themes and the plan's ambition however it was noted that the plan still felt conceptual.

It was queried whether the Council had the capacity and capability in the right places to make the transformation plan a reality.

The Executive Mayor responded that the administration recognised the Council would need to less but deliver well and there was an opportunity to deliver better outcomes for residents through alternative methods of service delivery. Capacity was being built within the council and there were clear implementation measures in the plans.

Cabinet Member for Finance Councillor Cummings added that in response to questions about capacity at Scrutiny and Overview Committee it had been advised that every work stream within the transformation plan included an assessment of the councils internal capacity to deliver. These were supplemented by identification of areas where interdependencies existed, and coordination was required. These requirements were built into the costings included in the report. Work had also been done  ...  view the full minutes text for item 7/24

The Executive Mayor and Cabinet RESOLVED to;

2.1 Consider the responses to the budget engagement with residents and statutory consultation with businesses (set out in Section 10 of this report and detailed more fully in Appendix H).

2.2 Consider and have due regard to the equalities impact assessment undertaken on the budget proposals as set out in Appendix L.

2.3 Approve the responses to the Scrutiny and Overview Committee recommendations (to follow publication of this report) on the budget proposals as set out in Section 20.

2.4 Note the Council’s request for Exceptional Financial Support (EFS) in the form of a Capitalisation Direction from the Ministry for Housing, Communities and Local Government of up to £136m for 2025-26, increasing to £203m by 2028-29.

2.5 Approve that (subject to Full Council approving the budget and any further decisions required of the Executive including as set out in Paragraph 2.21 below) that Corporate Directors be authorised to implement their respective growth and savings proposals for 2025-26 in accordance with the recommendations within this report, the Council's Constitution, Financial Regulations, relevant Schemes of Delegation and undertake any further consultation required, including regarding the Equalities Impacts of specific decisions within the Budget envelope as approved by Full Council.

2.6 Propose to Full Council for approval an increase in the Croydon element of the 2025-26 council tax charge by 2.99% (Band D £56.68).

2.7 Propose to Full Council for approval a 2% increase (Band D £37.91) in the 2025-26 Adult Social Care precept levy.

2.8 Note, based on the Mayor of London’s draft consolidated budget, a proposed 4.03% (Band D £18.98) increase regarding the Greater London Authority precept.

2.9 Propose to Full Council for approval, the calculation of budget requirement and council tax as set out in Appendix G and note that the inclusion of the GLA precept will result in a total increase of 4.80% (Band D £113.57) in the overall Croydon council tax bill. 7

2.10 Propose to Full Council for approval the setting of the Council’s own total net expenditure budget for 2025-26 at £373.501m.

2.11 Propose to Full Council for approval the detailed programme of revenue savings, income, demand pressures and legacy budget corrections, as set out in Appendix C.

2.12 Propose to Full Council the Reserves Policy set out in Appendix K.

2.13 Propose to Full Council for approval that the Corporate Director of Resources be authorised to collect and recover National Non-Domestic Rate and council tax in accordance with the Local Government Finance Act 1988 (as amended) and the Local Government Finance Act 1992.

2.14 Note the revenue budget assumptions detailed in the report and budget projections to 2028- 29 made by the Corporate Director of Resources in agreement with the Chief Executive and with the Corporate Management Team.

2.15 Note that all Directors will be required to report on their projected financial position compared to their revenue estimates in accordance with the 2025-26 monthly financial performance reporting timetable.

2.16 Note the statement (Appendix I of the Report) of  ...  view the full decision text for item 8/24

The Executive Mayor introduced the report noting the supplementary Scrutiny recommendations and Executive response now published online.

Despite recent years' progress in the Council's financial recovery there remained significant financial pressures. A budget gap of £98 million was projected for the 2025-26 financial year. Nationally and particularly in London, local authorities were experiencing rising costs in demand led services including Homelessness, Children's placements, Adult Social Care and SEN transport.

It was confirmed that Croydon's Council Tax would remain within the national cap with a proposed increase of 2.99% plus 2% for Adult Social Care.

The Council had achieved £137 million in savings in the past three years, with a further £30 million in savings planned for 2024/25 and the Future Croydon transformation programme would support further savings.

The Council's historic £1.4 billion debt burden would cost the Council £69 million (16% of its core spending power) in 2025/26. The disappointing 2025/26 Local Government settlement for Croydon (£4.5 million), the lack of any Government recovery fund for the borough and the Government's increase to National Insurance contributions were all noted as adding to the extremely challenging financial situation.

To achieve a balanced budget the Council had requested a £136 million Capitalisation Direction from Government, which would allow the Council to borrow more to cover costs. It was noted that 6 other London boroughs had requested Capitalisation Directions this year. In Croydon, these costs had previously been met via asset sales. These were now limited and each £100 million borrowed added £8.5 million annually to the Council's debt servicing costs. This approach to borrowing was not a sustainable for Local Government finance.

Included within the budget and owing to demand pressures £72.1 million would be invested into vital services.

The Executive Mayor advised there had been a constructive meeting with Minister of State for Local Government and English Devolution, Jim McMahon on Croydon's progress. It was hoped Croydon may be able to work in partnership to tackle the financial issues facing local government finances.

Whilst the Council was tackling the issues are far as possible at a local level, there remained need for national Government assistance for many councils across the country.

Cabinet Members were invited to explain the challenges in their portfolios and the work being undertaken locally to reduce demand.

Deputy Executive Mayor and Cabinet Member for Homes, Councillor Lynne Hale advised of the unprecedented demand and cost pressures in housing and demand from families facing homelessness. Croydon received the third highest number of housing applications in country and the worsening homelessness crisis represented a risk to the council's finances. The key issues facing the service included Increased homelessness due to cost of living crisis and evictions, rising temporary accommodation costs and the significant cost increases for nightly paid accommodation over last 12 months

Ongoing work to mitigate the demand pressures included:

• Homelessness prevention team managing caseloads to provide more early intervention and support. £100 million growth in staff levels included within the budget for this.
• Transformation work would focus  ...  view the full minutes text for item 8/24

The Executive Mayor and Cabinet RESOLVED to recommend to Full Council for approval;

2.1 The Council’s 2024-30 General Fund Capital Programme which includes planned expenditure of £1,314.3m (including capitalisation directions of £942.9m) across the six years period. This includes expenditure financed through borrowing of £985.4m over the six years, during which time the Minimum Revenue Provision (MRP) “paying down” of the capital financing requirement would be £244.9m. The MRP annual borrowing cost would increase incrementally by an average £5.7m each year over the six years. The cost of this future borrowing is factored into the Council’s Medium Term Financial Strategy.

2.2 The transformation projects set out in the table at paragraph 4.32 of this report to be included in the 2024-30 General Fund Capital Programme.

2.3 The 2024-30 Housing Revenue Account (HRA) Capital Programme which includes planned expenditure of £505.8m with borrowing of £247.2m.

2.4 The Council’s Capital Strategy, as detailed within Appendix A of this report.

2.5 Note the Council’s historic legacy borrowing and debt burden, and service pressures, are critical to the non-sustainability of the Council’s revenue budget. Dialogue with MHCLG continues, and the Council is seeking further financial and other support from Government in regard to its level of indebtedness and service pressures to ensure it can deliver sustainable local government services.

The Executive Mayor introduced the report emphasizing the responsible approach to investment. Key elements of the programme including:

• Successful bid for £18.5 million from the Levelling Up Fund which had secured external funding to restore the town centre and drive regeneration.
• The amplifying Surrey St. Project which was fully grant-funded project aimed at rejuvenating the historic market area and supporting local traders.
• £1.3 billion General Fund Capital Program dedicated to essential infrastructure while minimizing borrowing reliance. Including £108 million to improve highways, tree works, and other infrastructure. £20.5 million for educational upgrades to ensure quality environments for children and young people. £17.7 million investment in Clean and Waste Collection Vehicles to improve streets and air quality. £7.3 million for the LED streetlighting project, estimated to save £1.9 million annually and reduce energy consumption.
• £505.8 million Housing Revenue Account (HRA) Capital Programme aimed to improve living conditions and provide affordable housing

Cabinet Member for Finance, Councillor Cummings advised the focus of the programme was to keep borrowing levels under control by securing external grants to fund projects and ensuring activities did not increase borrowing or cost taxpayers more. Only health and safety related projects or ‘invest to save’ options were included ensuring any spending was essential and beneficial. Examples included Zodiac House and the street lighting improvements as these projects would generate net benefits by reducing borrowing costs over time.

Corporate Director of Resources and Section 151 Officer Jane West advised that the Council was not in line with the CIPFA code of practice on prudential indicators. This non-compliance was due to the council's debt level being too high and anticipated growth. Officers had consulted with CIPFA and the advice received was that given the exceptional financial support, with transparent reporting this was acceptable.

Shadow Cabinet Member for Finance Councillor Callton Young expressed concern about the worsening financial position of the Council and the growing borrowing owing to capitalisation directions. The legal advice provided in the report stated the Local Authority's requirement to consult with Government on how any assumptions are reflected in the council’s Minimum Revenue Provision (MRP). It was queried whether this consultation with Government had taken place (regarding the £71 million set aside for MRP) and what the opinion had been.

Cabinet Member for Finance Councillor Jason Cummings responded that it was possible to vary the MRP with approval from the central government. The Council has regular discussions with Ministry for Housing Communities and Local Government (MHCLG) and the capital strategy had been shared. Whilst there had been conversations regarding the treatment of MRP, owing to issues seen at other Council's and the long-term impact of less debt being paid down each year this had not been pursued and there was no variation to the MRP policy.

It was requested that declarations made by the Section 151 Officer be included explicitly within the reports for clarity.  

The Executive Mayor and Cabinet RESOLVED to recommend to Full Council for approval;

2.1 The Council’s 2024-30 General Fund Capital Programme which  ...  view the full minutes text for item 9/24

The Executive Mayor and Cabinet RESOLVED to recommend to Full Council that it:

a) Approves the Treasury Management Strategy Statement 2025/26 as set out in this report.

b) Approves the Prudential Indicators as set out in Appendix A of this report.

c) Approves the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix B.

d) Approves the Borrowing Strategy (Section 8.18 to 8.29) and Investment Strategy (Section 9).

e) Notes the Treasury Management Strategy Statement and Medium Term Financial Strategy demonstrate that the Council becomes increasingly unsustainable financially in the medium term and the Council is working with the new government as part of the Spending Review for 2025 to resolve this.

The Executive Mayor introduced the report reflecting on inheriting a Council in financial crisis and with a general fund debt burden of nearly £1.3 billion. Whilst progress had been made the ongoing financial challenges were reiterated.

Croydon had sought over £417 million in capitalisation directions since 2019 and for the upcoming financial year (2025/2026), it was expected that an additional £136 million would be required. Debt servicing costs for the Council were expected to increase from £67 million this year to over £108 million by 2028/29, creating an unsustainable burden on the Council and its residents.

The strategy was intended to provide the Council with flexibility in its investment decisions, reduce financial risk and achieve cost savings over the long term.

Cabinet Member for Finance Councillor Jason Cummings highlighted section 1.2 of the report which provided a summary of the Council's Treasury Management objectives. Considerations of MRP and the Council's utlisation of reserves were also included. The Council’s Capital Financing Requirement (CFR) and the impact of exceptional financial support were also outlined in the report.

A Treasury Management training session had been held for Members in June 2024 and Members were encouraged to attend future training sessions to gain better understanding of the topic.

Corporate Director of Resources and Section 151 Officer Jane West highlighted that as detailed at Appendix A the Council was not meeting the prudential indicators.

Shadow Cabinet Member for Finance Councillor Callton Young acknowledged the work of officers to deliver the report. The recommendation for the authorised borrowing limit to be set at the authorised boundary plus £50 million was queried and further clarification sought on the implications for the Council or with CIPFA.

Officers responded that this was normal practice to provide flexibility during the year.

The Executive Mayor and Cabinet RESOLVED to recommend to Full Council that it:

a) Approves the Treasury Management Strategy Statement 2025/26 as set out in this report.

b) Approves the Prudential Indicators as set out in Appendix A of this report.

c) Approves the Annual Minimum Revenue Provision Policy Statement (required by the Local Authorities (Capital Financing and Accounting) (England) (Amendment) Regulations 2008SI 2008/414) as set out in Appendix B.

d) Approves the Borrowing Strategy (Section 8.18 to 8.29) and Investment Strategy (Section 9).

e) Notes the Treasury Management Strategy Statement and Medium Term Financial Strategy demonstrate that the Council becomes increasingly unsustainable financially in the medium term and the Council is working with the new government as part of the Spending Review for 2025 to resolve this.

The Executive Mayor and Cabinet RESOLVED to;

2.1 recommend to Full Council to agree the HRA budget for 2025-26.

2.2 agree the HRA 30 Year Business plan based on the HRA budget for 2025-26. (Appendix A)

2.3 note the assumptions in the Business Plan and the associated risks.

The Executive Mayor introduced the report advising of the progress made in transforming the housing service over the past year, particularly in improving stock condition data, proactive repairs and financial planning.

It was confirmed that the 30 year HRA business plan remained viable with £520 million in repairs and improvements planned throughout the plan period. In 2025/26 the repairs budget was increasing by £8 million to address backlogs of repairs, specifically targeting issues such as damp, mould and improving living conditions

The regeneration of Regina Road had received £166 million in investment and would deliver 225 new affordable homes, supported by £54 million of government funding allocated through the Greater London Authority (GLA). £30 million was earmarked for acquisitions to expand the social housing stock, which will help provide more housing for families in need. The recent acquisition of Zodiac House, providing 73 residential units to support homeless residents, would save the Council £1 million annually and potentially £78 million over the next 40 years.

Despite early in-year pressures, the Council would maintain reserves at £9.5 million, ensuring that the HRA remained sustainable.

The tenant-focused improvements within the plan included addressing repairs, anti-social behaviour issues, and enhanced caretaking services.

The Council was also cracking down on unauthorised HMOs.

Cabinet Member for Homes Councillor Lynne Hale outlined the progress and challenges in the Housing Revenue Account Business Plan. The repairs budget has been increased to address past underinvestment in capital works and ongoing issues like damp and mould. The significant progress in clearing legacy disrepair cases was noted. There had also been restructuring within the Housing Directorate to better meet demand. The Capital investment component of the plan was based upon surveys and a data-driven approach, thanks were extended to the Chair of Scrutiny and Overview Committee for their recognition of this.

The budget had been set with the most accurate data available and to reflect the pressures of repairs and maintenance costs. Monitoring was embedded via the financial performance reporting. Council tenant contributions and priorities had been sought and incorporated into the plan.

Corporate Director of Housing Susmita Sen added that the business plan reflected the reality of day to day issues and the increased regulatory requirements.

Shadow Cabinet Member for Homes Councillor Chrishni Reshekaron raised concerns about the Council’s overspend for two successive years, requiring the use of reserves and continued overspend in responsive repairs for the next financial year.

Reassurance was sought on whether the issues would be resolved within the next financial year and it was queried whether the significant overspend on temporary accommodation would divert attention away from balancing the HRA.

The Executive Mayor responded that the key issue was catching up on the underinvestment in Croydon's housing stock. Resident's experiences of disrepair at Regina Road and the inward investment secured to rectify this were noted. 

The Executive Mayor and Cabinet RESOLVED to;

2.1 recommend to Full Council to agree the HRA budget for 2025-26.

2.2 agree the HRA 30 Year Business plan based on the  ...  view the full minutes text for item 11/24

The Executive Mayor and Cabinet RESOLVED;

2.1 to agree the social rents increase of 2.7% from April 2025 based on the current final year of the government’s Social Housing Rent Policy (applying September 2024 CPI + 1%)

2.2 to agree the request to set the tenants service charges increase at the same level as the rents (2.7%) for the financial year 2025-26

2.3 to agree the continuation of the Housing Revenue Account (HRA) hardship fund aimed at assisting tenants who are financially impacted by the 2025-26 rent increase, subject to obtaining a further Direction in appropriate terms from the Secretary of State.

2.4 to agree, the nil increase to the garage rents on the proviso that a full review of the viability of assets is carried out in 2025-26.

2.5 to agree the request to set the increase in the caravan site plot charges in line with September CPI of 1.7%

2.6 to note the continual implementation of the Social Rent Policy flexibility to social rents. This enables an additional 5% above formula rent to be charged in general needs accommodation and 10% in supported housing on relets.

2.7 to note that there will be additional service charges levied on specific properties after the introduction of new grounds maintenance contracts.

2.8 to delegate authority to the Corporate Director of Housing, in consultation with Cabinet member for Homes, to make adjustments to the service charge levied on the provision of the extra care services for the provision of the extra care services, plus enhancements to the stock condition which are in addition to the regular life cycle of repairs and maintenance.

The Executive Mayor introduced the report and advised the proposed 2.7% rent increase aliged with the final year of the Government's Social Housing Rent Policy (CPI + 1%). This increase would generate an additional £1.6 million, allowing Croydon to maintain and improve essential services for tenants.

The Council would be:  

- Keeping tenant service charges in line with the rent increase of 2.7%, ensuring affordability whilst sustaining service levels.

- Retaining the HRA hardship fund to support tenants in financial distress, who do not receive other benefits.

- Freezing garage rents pending a full review of asset viability.

- Enhancing flexibility in social rents on relets, enabling us to reinvest in our housing stock.

The Council was meeting new statutory regulations, including:

- Fast-tracking responses to damp and mould issues under 'Awaab’s Law.'

- Clearing long-term void properties and bringing them back into use.

- Improving fire and building safety compliance following the Grenfell Inquiry findings.

- Investing in better caretaking, cleaning, and estate security, directly addressing tenant priorities.

The Council had engaged with over 600 residents through surveys and meetings, repairs, anti-social behaviour and improved maintenance emerged as top priorities and had been incorporated into the plans.

Cabinet Member for Homes Councillor Lynne Hale advised of the 10% private sector rent increase in Croydon over the past year. The recommended 2.7% rent increase for 2025-26 detailed within the report was in line with the maximum allowable under the social rent policy.

Rent income funded programmes within the Housing Revenue Account (HRA), including responsive repairs and capital programmes which were facing significant cost increases due to inflationary pressures and changes in statutory requirements. Due also to limited government funding, the proposed rent increase was necessary for the Council to continue its commitment to improving homes and estates.

Around 68% of tenants were eligible for some form of housing benefit, while the remaining 32% were self-payers and could face financial challenges due to the rent increase. To assist these tenants, the Housing Revenue Account discretionary fund would continue to be available in 2025-26, subject to approval by the Secretary of State. 

The Corporate Director of Housing Susmita Sen added that this was the third year the Council had engaged with the resident Customer Influence and Assurance Body which was supportive of the increase.

Shadow Cabinet Member for Homes Councillor Chrisni Reshekaron supported the proposed increase to social rent and welcomed the continuation of the HRA discretionary fund to support those residents who may be at financial risk due to the increase. Assurance was sought that mechanisms would be put in place to administer the HRA discretionary fund in a timely manner, noting there had been delays to Household Support Fund payments.

The Executive Mayor clarified that the discretionary HRA fund was set up by the administration two years ago and separate to the Household Support Fund of Government funding. There had been a delay to Household Support Fund payments and the backlog was being worked through.

The Executive Mayor and Cabinet  ...  view the full minutes text for item 12/24

The Executive Mayor and Cabinet RESOLVED;

2.1 To approve the statutory, spend of £341.5m (£342.7m less £1.2m referenced in 2.4 below) of Schools Block DSG funding for the period 2025/26;

2.2 to approve the provisional funding formula factors for Croydon mainstream schools (as shown in Appendices C and D) for the financial year 2025/26 in line with the recommendations voted by Schools Forum on 2 December 2024;

2.3 To note the extract of the Schools Forum minute (relating to schools formula factors) and how voting decisions has informed the formula factors shown in Appendices C and D.

2.4 to support the Schools Forum approval and the transfer of £1.2m from the school’s block to the High Needs block as part of DSG Deficit Management Plan;

2.5 to note the factors values reported in appendices C and D. Appendix D provides detail of which factors need to be voted on and those not requiring further vote by the Schools Forum. The decisions made illustrate how the Schools Forum evaluated the three main DfE options for each factor, before selecting the final factor which forms the bases underlying the draft budget for 2025/26.

The Executive Mayor introduced the report advising of the Council's requirement to annually agree the funding formula for the distribution of the Dedicated Schools Grant. This ensured fair resource allocation across Croydon's schools whilst meeting the needs of the borough’s diverse student population.

As set out in the report, this year's funding formula reflected new Government guidance and was approved by the Schools Forum on 2 December 2024. It also included the decision to transfer £1.2 million from the Schools Block to the High Needs Block.

Investing in Enhanced Learning Provisions (ELPs) was a key step in managing rising costs by implementing measures to stabilise and control demand.

Cabinet Member for Children and Young People, Councillor Maria Gatland highlighted that the looked after children factor was no longer permitted under the national funding formula. The Schools Forum had agreed to allocate £167,000 for LAC funding from the growth budget, thanks were extended to the Schools Forum for their support on this.

Shadow Cabinet Member for Children and Young People Councillor Amy Foster welcomed the inclusion of statutory guidance on the need for consultation within the report. Clarification was sought on the consultation feedback prior to the school's forum meeting and any plans in place to mitigate concerns around the management of the DSG deficit management plan.

Corporate Director of Children, Young People and Education Stuart Collins advised the consultation had taken place and agreed to provide further information regarding any objections if required.

It was confirmed that the minutes of the previous school's forum meeting would be shared once agreed.

The Executive Mayor and Cabinet RESOLVED;

2.1 To approve the statutory, spend of £341.5m (£342.7m less £1.2m referenced in 2.4 below) of Schools Block DSG funding for the period 2025/26;

2.2 to approve the provisional funding formula factors for Croydon mainstream schools (as shown in Appendices C and D) for the financial year 2025/26 in line with the recommendations voted by Schools Forum on 2 December 2024;

2.3 To note the extract of the Schools Forum minute (relating to schools formula factors) and how voting decisions has informed the formula factors shown in Appendices C and D.

2.4 to support the Schools Forum approval and the transfer of £1.2m from the school’s block to the High Needs block as part of DSG Deficit Management Plan;

2.5 to note the factors values reported in appendices C and D. Appendix D provides detail of which factors need to be voted on and those not requiring further vote by the Schools Forum. The decisions made illustrate how the Schools Forum evaluated the three main DfE options for each factor, before selecting the final factor which forms the bases underlying the draft budget for 2025/26.

The Executive Mayor and Cabinet RESOLVED;

2.1 to note the General Fund revenue budget outturn is forecast to overspend at financial year end by £18.2m at Period 8, after the budgeted utilisation of £38m capitalisation directions requested from the Ministry of Housing, Communities and Local Government (MHCLG), utilisation of the £5.0m risk contingency budget and utilisation of £13.0m corporate earmarked reserves and £3.9m business risk earmarked reserve.

2.2 to note that all service directorates have been asked to reduce their net expenditure so that the annual budget can be balanced at the end of the year through the in-year Financial Recovery Plan as set out from paragraph 4.9.

2.3 to note the unfunded Local Government cost pressures that have emerged nationally, regionally and locally relating to increases in demand and market prices which need to be addressed by Government changes to policy and/or funding levels.

2.4 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.9m (79.1%) against the total savings target of £27.7m as set out in paragraph 4.148.

2.5 to note the work that is continuing on the Council’s Transformation Programme as set out from paragraph 4.143.

2.6 to note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £8.0m.

2.7 to note the General Fund capital programme 2024-25 forecast underspend of £2.7m against the revised capital budget of £137.4m.

2.8 to note the HRA capital programme 2024-25 forecast breakeven position against the revised capital budget of £68.3m.

2.9 to note the Council’s historic borrowing and subsequent debt burden continues to be critical to the non-sustainability of the Council’s revenue budget as set out from para 4.168. Dialogue with MHCLG continues around options of further financial support from Government in regard to the level of structural indebtedness to ensure the Council can deliver sustainable Local Government services.

2.10 to note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained.

2.11 to note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.

The Executive Mayor introduced the report and highlighted progress being made to stabilise Croydon’s finances despite significant pressures. The Council had achieved 79.1% of its Medium-Term Financial Strategy savings target (£21.9m of £27.7m), demonstrating commitment to responsible financial management and sustainable service delivery.

It was reiterated that demand led pressures were being experienced by local authorities across London and the U.K.

A Financial Recovery Plan had been implemented at Croydon to tackle the forecast General Fund revenue overspend of £18.2 million with significant progress made including:

- Reducing reliance on expensive commercial hotels for temporary accommodation, a major step in managing homelessness costs.

- Accelerating foster carer recruitment to reduce high-cost placements in children’s social care.

- Investing in efficiencies in SEND transport to control costs whilst supporting families.

The Council's transformation programme was already delivering long-term efficiencies and it was continuously identifying new opportunities to reduce expenditure and increase income.

Cabinet Member for Finance, Councillor Jason Cummings confirmed the report highlighted a £0.2 million improvement in the General Fund year-end forecast. The main changes were due to increased temporary accommodation costs, particularly for nightly lets, mostly offset by the £3.9 million earmarked reserves use from the Oracle Improvement Programme.

The Council was addressing cost pressures, especially in housing, with ongoing negotiations with providers to reduce accommodation prices. Coordination between boroughs was improving, helping to prevent price increases caused by competition. It was hoped this coordinated approach continued.

The Council's finances were an ongoing process and while current actions would have a smaller impact this year, they would have a greater impact in the following financial year.

Corporate Director of Resources and Section 151 Officer Jane West provided assurance that the Council's Corporate Management Team remained extremely focussed upon rectifying the financial situation.

Shadow Cabinet Member for Finance, Councillor Callton Young highlighted the forecast overspend (2023/24) of £18.2 million noting the £0.2million improvement from Period 7 owing to the utilisation of earmarked reserves. It was requested for future reporting to provide more detail on the impact of the Financial Recovery Plan and its achievements.

Councillor Cummings advised many Financial Recovery Plan actions were supporting cost mitigations against further rises. For example, presentation rates in Temporary Accommodation and Homelessness where the Council had previously housed 60%, had through improvement actions been reduced to 25%. This had resulted in a £15 million mitigation of costs. It was agreed narrative on this activity could be included in future reporting.

The Executive Mayor and Cabinet RESOLVED;

2.1 to note the General Fund revenue budget outturn is forecast to overspend at financial year end by £18.2m at Period 8, after the budgeted utilisation of £38m capitalisation directions requested from the Ministry of Housing, Communities and Local Government (MHCLG), utilisation of the £5.0m risk contingency budget and utilisation of £13.0m corporate earmarked reserves and £3.9m business risk earmarked reserve.

2.2 to note that all service directorates have been asked to reduce their net expenditure so that the annual budget can be balanced at the end of  ...  view the full minutes text for item 14/24

The Executive Mayor and Cabinet RESOLVED to;

2.1 Note the Mayor’s Business Plan performance report (Appendix A and B) with latest data available on 31 October 2024 (unless otherwise stated) regarding overall council and partnership performance, and actions being taken to improve outputs.

2.2 Note the areas of progress (section six) and challenge (section seven) in performance this reporting period, and note the enhanced escalation process, reviewing the latest position, for areas where performance requires improvement.

2.3 Note the launch of the Croydon Council Data Academy as detailed in section eight of this report.

The Executive Mayor introduced the report summarising the progress in delivering the five key priorities set out in the Mayor's Business Plan. ]

This included:

• Stabilising the Council’s finances, protecting essential services and working with Government on solutions to the historic debt.
• The LGA Corporate Peer Review Challenge's recognition of transforming the Council into a more effective, resident-focused organisation.
• The regeneration of Regina Road and the acquisition of Zodiac House
• Targeted blitz cleans in areas like New Addington and Addiscombe
• Transforming public spaces and infrastructure with Levelling Up funding
• The dedicated town centre task force addressing antisocial behaviour and tackling the ‘broken windows’ effect, along with the reinstated graffiti team.

Cabinet Member for Homes, Councillor Lynne Hale noted the importance of the Council's robust performance monitoring to ensure the outcomes within the Mayor's Business Plan were achieved. The improvements to ways of working and realising efficiencies were captured within the Key Performance Indicators (KPI's) as detailed within the report. It was encouraging to see performance improving over 2024/25. The reduction of households living in shared accommodation was highlighted along with the Council's improvements in areas including governance and resident focus which had been recognised by the LGA Corporate Peer Review Challenge.

Leader of the Opposition, Councillor Stuart King highlighted the Council's failure to meet the wait time KPI for the housing contact centre over the past 14 months and that more than 1000 unanswered calls in the past month.

It was suggested that the Council should have agreed targets with partner organisations on the 'Partnership KPIs' regarding for example, targets around domestic violence and knife crime.

The Executive Mayor advised the partner KPI's provided contextual information, and this area of reporting would be considered going forward.

The Executive Mayor and Cabinet RESOLVED to;

2.1 Note the Mayor’s Business Plan performance report (Appendix A and B) with latest data available on 31 October 2024 (unless otherwise stated) regarding overall council and partnership performance, and actions being taken to improve outputs.

2.2 Note the areas of progress (section six) and challenge (section seven) in performance this reporting period, and note the enhanced escalation process, reviewing the latest position, for areas where performance requires improvement.

2.3 Note the launch of the Croydon Council Data Academy as detailed in section eight of this report.

The Executive Mayor and Cabinet RESOLVED to;

2.1 Approve Croydon Council to become the lead accountable body on behalf of the South London Partnership (SLP) for the Connect to Work Programme. This will include the Council leading on supporting the design, procurement, commissioning and contract management of the contract.

2.2 Approve that upon contract award, Croydon Council can commence delivery of the Connect to Work from June 2025.

2.3 Delegate authority to the Director of Planning & Sustainable Regeneration, to enter into a grant agreement with the Department for Work & Pensions to fully fund the Connect to Work Programme delivery.

2.4 Delegate authority to the Director of Planning & Sustainable Regeneration, to enter into agreements with the SLP Partners (London Boroughs of Kingston upon Thames, Merton and Sutton) delivering on the Connect to Work Programme.

2.5 Delegate authority to the Director of Planning & Sustainable Regeneration to enter into an agreement with Richmond upon Thames in relation to their direct delivery arrangements.

2.6 Approve the procurement strategy to procure the delivery of the Connect to Work Programme via the Open Procedure for a 5 year contract with an optional 2 year extension with an estimated contract value of £29,100,000 across all SLP Partner boroughs and an estimated Croydon contract value of £18,080,400.

2.7 Note that the Chair of the Contracts & Commissioning Board has approved the recommendations in this report regarding the procurement strategy in accordance with the requirements of the Council’s Tenders and Contracts Regulations.

The Executive Mayor introduced the report advising the programme was a step forward in addressing unemployment and economic inactivity in Croydon and the broader South London Partnership (SLP) area. It would support 1400 residents to secure and sustain employment each year. Croydon has been designated as the lead accountable body for this initiative owing to the borough's high levels of unemployment and in-work poverty compared to the rest of the SLP. The Council's experience in delivering the previous Work and Health Programme was noted. Connect to Work was fully funded by the Department for Work and Pensions (DWP) for £29.1 million over five years.

Councillor Tony Pearson thanked officers for their work on the programme and advised the programme would launch in June 2025. Targeted support would be provided for economically inactive residents, including individuals with disabilities, those with long-term health conditions and those facing complex barriers to employment.

Shadow Cabinet Member for Planning and Regeneration, Councillor Chris Clarke noted the programme formed a central element of Government's 'Get working' strategy and welcomed the collaborative working across South London boroughs and the five-year package of funding. The capacity of key partners (e.g. Croydon College, Croydon Works and London South Bank University) to support the programme success was queried.

The Executive Mayor advised of the Council's close working with partners throughout the previous Work and Health Programme. Partners had capacity to continue to deliver the programme.

Corporate Director of Sustainable Communities, Regeneration & Economic Recovery Nazeya Hussein advised the programme was an opportunity for engagement with both statutory, VCS partners and additionally social care and health colleagues within the Council.

Officers highlighted the integrated approach and intention to procure smaller providers as detailed within the report. It was the intention to embed support within communities to best support those deemed 'hard to reach'.

The Executive Mayor noted the programme's alignment to their key priority to support Croydon's economic recovery and future growth.

The Executive Mayor and Cabinet RESOLVED to;

2.1 Approve Croydon Council to become the lead accountable body on behalf of the South London Partnership (SLP) for the Connect to Work Programme. This will include the Council leading on supporting the design, procurement, commissioning and contract management of the contract.

2.2 Approve that upon contract award, Croydon Council can commence delivery of the Connect to Work from June 2025.

2.3 Delegate authority to the Director of Planning & Sustainable Regeneration, to enter into a grant agreement with the Department for Work & Pensions to fully fund the Connect to Work Programme delivery.

2.4 Delegate authority to the Director of Planning & Sustainable Regeneration, to enter into agreements with the SLP Partners (London Boroughs of Kingston upon Thames, Merton and Sutton) delivering on the Connect to Work Programme.

2.5 Delegate authority to the Director of Planning & Sustainable Regeneration to enter into an agreement with Richmond upon Thames in relation to their direct delivery arrangements.

2.6 Approve the procurement strategy to procure the delivery of the Connect to Work Programme via the Open Procedure for a  ...  view the full minutes text for item 16/24

The following motion is to be moved and seconded where it is proposed to exclude the press and public from the remainder of a meeting:

“That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information falling within those paragraphs indicated in Part 1 of Schedule 12A of the Local Government Act 1972, as amended.”

This was not required.