Report attached.

Report Title: Improvement& Transformation Plan Progress Update and CIPFA FM Review 

Presented by: Councillor Ray Morgon, Council Leader

Summary:

In 2023/24, our unit costs were the 16th lowest compared to 16 other Outer London boroughs, i.e. the lowest as independently assessed by LG Futures. Our income collection for Council Tax was in the top-quartile in London. We consistently sold off assets (over £160m since 2013/14) to minimise borrowing costs of our capital programme, and Members increased Council Tax throughout austerity. 

The Council takes its financial responsibilities very seriously. We have maximised Council Tax income, have one the lowest unit costs in the country, have sold assets, do not have high levels of borrowing and have been forced to use our reserves to mitigate underfunding. 

After significant systemic underfunding since 2010, the Council’s financial challenge was no longer one we could manage without Government intervention. Exceptional Financial Support through a capitalisation direction was applied for to prevent us from issuing a S114 for last financial year (2024/25).As part of the requirements to receive this support, an Improvement & Transformation Plan was required to besubmitted no later than 27th August 2024. The plan has been monitored internally, since its approval at Cabinet in July 2024. 

Another condition of the Capitalisation Direction was for the Council to undergo an independent Financial Management review to assess the Financial Management and Governance arrangements of the Council. This report provides additional information on the Financial Management review which was conducted last summer, and the recommendations put forward by CIPFA. 

Officers received thanks from the Members and asked that the RAG system be used for the Overview & Scrutiny Board projects.

Cabinet:

(1)  Noted the Improvement and Transformation Plan Updates within the Action Plan.

(2)  Noted the CIPFA Financial Recommendations and Updates within the Improvement and Transformation Action Plan.

Cabinet noted that the delivery of the actions set out within this plan is the responsibility of theExecutive Leadership Team.