Decisions

RESOLVED: To

Approve the recommendations listed below in relation to 2 areas:

Existing contract extension request:

1.     Approve the extension, by way of contract variation, with Barnardo’s Services Ltd for ‘children’s advocacy service’ until 30^th September 2023 for an additional value of £95,000, pro-rata and taking the aggregate contract value to £528,000.

2.     Please note that the service has continued to be provided since October 2022 outside of appropriate governance approval and that the extension is sought from the date of approval of this report’s recommendations and not retrospectively.

Procurement strategy for future procurement:

3.     Approve the procurement strategy for a 5-year contract with a 2-year extension for the delivery of a children’s advocacy service from 30^th September 2023 to 30^th September 2030. The total estimated annual value is £95,000 which results in a total aggregated value of £665,000 for the 7 years (5 years, plus a possible 2-year extension).

RESOLVED: To

a)    Approve the permitted extension to deliver Supervised Contact to the provider, Swanstaff Recruitment Ltd until the 31^st October 2023 at a total cost of £536,000 for an aggregate contract value of £2,669,000.

b)    Note that the service has continued into the permitted extension period from November 2022 without appropriate governance approval

Cabinet received a report in December 2022 advising the details of the Streetlighting PFI including the background of the arrangement.

RESOLVED: To

Corporate Director of Resources and Section 151 Officer, in consultation with the Monitoring Officer and Cabinet Member for Finance is recommended:

1.1.         To note the due diligence undertaken since the December 2022 Cabinet report and approve the upfront refinancing gain, with the final figure being identified on the day of Financial Close as detailed within draft Protocol attached in Appendix D.

1.2.         To approve the Local Government Contracts Act Certificate (provided in Appendix F) and to approve entering into the Direct Agreement (Appendix G).

1.3.         To note the Senior Lender’s Direct Agreement (provided in Appendix G) and note within Appendix B under paragraph 2.5 and section 10 that this agreement is a standard practice for replacing old lenders with new and does not materially impact on the Council.

1.4.         To approve the Council taking an upfront gain through a cash receipt as opposed to a reduced Unitary Charge payment.

1.5.         To delegate to Head of Finance – SCRER to enter into any agreements to give effect to the decisions in this report, including the Deed of Variation to the Project Agreement, at the Financial Close call or after so long as they are not materially different to the position provided within this report.

1.6.         To approve that Head of Strategic Finance, Planning and Commercial at London Borough of Lewisham to speak on behalf of Croydon at Financial Close.

1.7.         To approve that the Council retains the gain allocated to DfT in return for reduced PFI Credits from 2026/27.

1.8.         Note the legal report, Appendix B, on variations made to the Project Agreement to reflect the outcome of the refinancing on the PFI.

Letting of surplus space within Bernard Weatherill House to secure additional income for the Council

RESOLVED: To

1.     To agree the letting of the 5^th floor Bernard Weatherill House (BWH) to the London Ambulance Service NHS Trust on terms detailed within the Part A and Part B report.

2.     To delegate to the Corporate Director Resources and s151 Officer authority to finalise lease terms and other ancillary arrangements with the London Ambulance Service NHS Trust to facilitate the letting the letting detailed in this and the Part B report

RESOLVED:

1.1.         To agree the award of a contract to deliver Area 1/ Lot 1 (c.70% of the housing stock) of the responsive repairs services, optional planned programme and out-of-hours contact centre to Wates for a period with an initial contract term of 6 years and 8 months with a break option at that point and a total maximum contract duration of 10 years and 8 months (plus a 1-year defects liability period) for the maximum contract value of £125.7m.

1.2.         To agree the award of a contract to deliver Area 2/ Lot 2 (c.30% of the housing stock) of the responsive repairs services and optional planned programme to Mears for a period with an initial contract term of 6 years and 8 months with a break option at that point and a total maximum contract duration of 10 years and 8 months (plus a 1-year defects liability period) for the maximum contract value of £61.3m.

1.3.         To agree the award of a contract to deliver Heating Services to British Gas Social Housing Ltd t/a PH Jones for a period with an initial contract term of 6 years and 8 months with a break option at that point and a total maximum contract duration of 10 years and 8 months (plus a 1year defects liability period) for the maximum contract value stated of £40.9m.

1.4.         To note, the break options referred to in recommendations 2.1 to 2.3 above shall follow the same governance process as a permitted extension under the Tenders and Contracts Regulations (as amended).

1.5.         To note, following recommendation 1.2 of the Procurement Strategy report, the outcome of the affordability analysis for the contact centre was to in-source the service from 8am-6pm, with the out-of-hours element being outsourced. The contact centre out-of-hours element was included in the procurement process and the recommended award is included in recommendation 2.1 above to the Lot 1 bidder.

1.6.         To note, as part of the Tender submission all contractors were asked to submit a price to take the calls out-of-hours for both Lot 1, Lot 2 and Heating emergencies. This will now be used to compare with us providing our own Out of Hours Service in terms of cost and quality.

1.7.         To note, the successful providers’ names will be made public after the decision takes place.

The executive proposals for the Council Tax & budget 2023-24 were voted upon at Council 1^st March 2023. The proposals were not agreed.

This decision report confirms that the Mayor wishes to resubmit his original Budget proposals to the Council, as set out in the Council Tax & Budget 2023-24 Report to the Council meeting on 1^st March 2023, for reconsideration.

Appendix A sets out the Mayor’s response to the Council objections.

The Mayor has confirmed that he wishes to resubmit his original Budget proposals to Council, as set out in the Council Tax & Budget 2023-24 Report to the Council meeting on 1^st March 2023, for reconsideration.

The Mayor’s response to the Council objections is set out at Appendix A.

RESOLVED: To

1.1.          Recommends to Council the following changes to the Council Tax Support Scheme:

1.1.1       Remove the application of the minimum income floor to households where the claimant or partner are disabled

1.1.2       Change the rate at which the income bands are increased annually from the level of CPI 10.1% to the amount Council Tax is increased for that year which could be up to 15% cap.

1.1.3       Introduce non-dependent deductions (NDD) to disabled not working households, except where the non-dependent is in receipt of Employment Support Allowance or Limited Capability to Work, or in receipt of carers allowance for the claimant or partner.

1.2.          To agree The Councils Council Tax Support Scheme is amended as set out above, from 1 April 2023

RESOLVED: To

1.1.         To accept and refer the Worth Technical Accounting Solutions reports to the Audit and Governance Committee for debate.

1.2.         Request that the Audit and Governance Committee monitor the implementation of the recommendations from the reports.

RESOLVED: To

Approve the response and action plans attached to this report at Appendix A and that these be reported to the Scrutiny and Overview Committee or relevant Sub-Committees.

RESOLVED: To

1.1.          Consider the responses to the budget engagement with residents and businesses as set out in Section 10 and Appendix I.

1.2.          Consider and have due regard to the equalities impact assessment undertaken on the budget proposals as set out in Section 15.

1.3.          Approve the responses to the Scrutiny and Overview Committee recommendations (to follow) on the budget proposals as set out in Section 20.

1.4.          Approve that Directors be authorised to implement their service plans for 2023/24 in accordance with the recommendations within this report, the Council's Constitution, Financial Regulations, relevant Schemes of Delegation and undertake any further consultation required regarding the Equalities Impact Assessment

1.5.          Propose to Full Council for approval an increase in the Croydon element of the 2023/24 council tax charge by 12.99% (Band D £203.95).

1.6.          Propose to Full Council for approval a 2% increase (Band D £31.40) in the 2023/24 Adult Social Care precept levy.

1.7.          Note, based on the Mayor of London’s draft consolidated budget, a 9.7% (Band D £38.55) increase regarding the Greater London Authority precept.

1.8.          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 13.93% (Band D £273.91) in the overall Croydon council tax bill.

1.9.          Propose to Full Council for approval the setting of the Council’s own total net expenditure budget for 2023/24 at £340.911m.

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

1.11.       Propose to Full Council the proposed £10m budget in 2023/24 to support delivery of the transformation programme.

1.12.       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), the Local Government Finance Act 1992.

1.13.       Note the revenue budget assumptions detailed in the report and budget projections to 2025/26 made by the Corporate Director of Resources in agreement with the Chief Executive and with the Corporate Management Team.

1.14.       Note the Council’s request for a capitalisation direction from the Department of Levelling Up, Housing and Communities [DLUHC] of up to £300.6m (£161.6m in 2022/23 regarding legacy finance issues and £139m regarding 2023/24 to 2025/26, annually £63m, £38m and £38m respectively).

1.15.       Note that all Directors will be required to report on their projected financial position compared to their revenue estimates in accordance with the 2023/24 monthly financial performance reporting timetable.

1.16.       Note the statement (section 11 of the Report) of the Corporate Director of Resources, under Section 25 of the Local Government Act 2003, regarding the adequacy of reserves and robustness of estimates.

1.17.       Note that the provisional Dedicated Schools Grant allocation for 2023/24 will increase by £26.310m to £427.688m (section 12 of the Report).

RESOLVED: To

Recommend to Full Council that it approves:

1.1.          The Treasury Management Strategy Statement 2023/24 as set out in this report.

1.2.          The Prudential Indicators as set out in Appendix A of this report.

1.3.          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.

RESOLVED: To

Recommend the following to Full Council:

1.1.          Agree the Council’s 2023/24 to 2026/27 General Fund Capital Programme which includes planned expenditure of £305.67m (including capitalisation directions) across the four years.

1.2.          Note that the Council will incur borrowing of £169.53m (including £162m of Capitalisation Direction) in 2022/23, with further borrowing projected of £45.82m in 2023/24 and £28.36m over the three years after 2023/24. The cost of this borrowing is factored into the Council’s Medium Term Financial plan resulting in 2023-24 total interest charge and Minimum Revenue Provision of £61.3m

1.3.          Approve the Council 2023/24 Housing Revenue Account Capital Programme with a total investment planned of £32.62m with borrowing of nil.

1.4.          Approve the Council’s Capital Strategy, drafted with the support of PwC, as detailed within Appendix A of this report.

RESOLVED: To

1.1.         To approve the HRA budget for 2023-24

1.2.         To note the update to the HRA 30 year Business plan based on the HRA budget for 2023-24

1.3.         To note the assumptions the business plan is based upon and the risks associated with these assumptions

1.4.         To note the commencement of the work on a new asset management strategy and enhanced stock condition survey that will further inform the business plan

1.5.          To approve an application to the Secretary of State for a direction permitting the funding by the HRA of Discretionary Housing Payments from an HRA Hardship Fund, and to authorise the Corporate Director, Housing to agree the terms of such a direction with DLUHC.

RESOLVED: To

1.1.          Have due regard to the equalities impact assessment in Appendix 2 in making the decisions set out in these recommendations.

1.2.          Approve the fees and charges as set out in Appendix 1 to the extent that they fall within the authority of the Executive to determine.

RESOLVED: To

1.1.          Approve an extension and variation to the existing information, advice & guidance contract awarded to Citizens Advice Croydon, as set out within this report in order to maintain continued provision whilst a full and compliant procurement exercise is completed. The proposed extension is for a maximum period of up to 12 months at a cost of £325,000.

RESOLVED: To

1.1.          Agree the draft Planning Transformation Programme structure, including the programme’s high level workstreams, future governance and next steps.

1.2.          To delegate the preparation of the Final Planning Transformation Programme, to the Corporate Director of Sustainable Communities, Regeneration and Economic Recovery following further consultation with the Cabinet Member of Planning and Regeneration.

RESOLVED: To

1.1.          To agree £12,261,000 budget for the ‘Delivering the Growth Zone’ programme 2023/24;

1.2.          To note the indicative funding profile for Growth Zone Sub Groups and projects as detailed in Table 1 of this report; and,

1.3.          To agree subject to the requirement to comply with the provisions of Part 4G of the Constitution in taking delegated decisions, and the parameters previously approved in the March 2021 Cabinet report ‘Delivering the Growth Zone’ delegate to the Corporate Director of Sustainable Communities, Regeneration & Economic Recovery in consultation with the Chief Finance Officer (Section 151) and the Cabinet Member for Planning and Regeneration authority to make necessary changes to the funding assigned to Sub Groups as outlined in Table 1.

RESOLVED: To

1.1.         Note the General Fund revenue budget outturn is forecast to be balanced at Month 8. Service directorates are indicating a £16.865m overspend. This is offset by £0.978m corporate underspend, £4m use of earmarked inflation reserves, £5m use of the general contingency budget and the budgeted £6.9m contribution to General Fund Balances being released.

1.2.         Note the forecast elimination of the planned contribution to General Fund Reserves of £6.9m for 2022/23.

1.3.         Note that a further number of risks and compensating opportunities may materialise which would see the forecast change.

1.4.         Note the actions being taken through the Deficit Recovery plan. Further details are in paragraph 2.15

1.5.         To approve the progress of the MTFS savings as indicated within Table 4 and detailed in Appendix 3.

1.6.         Note the Housing Revenue Account (HRA) is projecting an end of year position of a £4.976m overspend, due to inflation, disrepair costs and void rents.

1.7.         Note the Capital Programme spend to date for the General Fund of £17.534m (against a budget of £68.160m) with a projected forecast underspend of £15.084m for the end of the year.

1.8.         Note the Housing Revenue Account Capital Programme spend to date of £12.352m (against a budget of £25.165m), with a projected forecast underspend of £4.145m for the end of the year.

1.9.         Note, the above figures are predicated on forecasts from Month 8 to the year end and therefore could be subject to change as forecasts are made based on the best available information at this time.

1.10.     Note, the Council continues to operate a Spend Control Panel to ensure that tight financial control and assurance oversight are maintained A new financial management culture is being implemented across the organisation through increased scrutiny, such as the monthly assurance meetings, improved communication and budget manager training from CIPFA.

1.11.     To approve the virement details in section 7 of this report.

RESOLVED: To

1.1.          Note the outcome of the pilot studies as set out in section 4.15 of this report.

1.2.          Agree to the introduction of the draft ‘Street Lighting Policy’ as summarised in Section 3 and Appendix A of this report.

1.3.          To formalise the trial running since 06 January 2022 and adopt the pilot regime of 50% reduction in light levels in residential streets between 7pm – 5am and 50% reduction along main traffic routes from Midnight – 5am.

1.4.          To delegate to officers to undertake further pilot studies within the framework of the draft Street Lighting Policy, to reduce energy consumption and C02 emissions from the street lighting infrastructure across the borough and report back to a future cabinet.