Report to follow if available.

Note: Members may wish to scrutinise the report in conjunction with the Council’s Strategic Risk Register which can be accessed via this link (please copy and paste into your browser if necessary):

https://democracy.havering.gov.uk/documents/s77373/Appendix%201%20Strategic%20Risk%20Register%20December%202024.pdf

Officers advised that good progress was being made on the £10.2m savings identified in the 2025/26 budget. Cash savings achieved were now shown in the report. More information was also given in the report re the savings from the libraries programme. It was hoped that amber rated savings would be achieved by year end but it was acknowledged that those savings that were red rated were proving difficult. Ratings for some savings would be revised if they proved more achievable.

No meanwhile uses for the former library sites had been identified at present. The £22k saving on business rates was not currently being achieved and it was acknowledged that library services were struggling to achieve their overall savings targets. Officers were conscious of the number of agency workers in libraries, some of whom had been kept on due to the closure programme. It was not possible at this stage to say how many permanent library staff had been redeployed although this could be confirmed. Redeployed staff were put into already budgeted roles so this was not a saving.

A Member raised whether the amount of support to residents re claiming attendance allowance, pension credit etc had lowered due to the library closures. Officers would respond separately on this but it was pointed out this support could be accessed in other ways rather than just via libraries. It was noted that the Council only retained 30% of the revenue from business rates. The lowering of library income from photocopying services had reduced the level of savings put up.

It was confirmed that the modular housing units had been procured and work would start in November with occupation by the end of January. This would be temporary accommodation and work was ongoing to try to procure more accommodation. The number of families living in hotels had reduced and work was in progress to lower the cost of nightly paid accommodation. Additional provision of modular units was also being considered and officers emphasised that they did not wish to have anyone living in temporary accommodation. It was noted however that the number of private sector landlord properties available continued to decline.

Further details could be given of the budget tracking process but this was undertaken at Cabinet level and £160m of savings had been made in the last 10-15 years. The savings report had not been specifically shared with Central Government but the Ministry of Housing, Communities and Local Government had asked for an update in this area and was supportive of the Council’s work to achieve savings.

Officers estimated the total Capitalisation Directive required for 2025/26 to be just under £70m. While this was an improvement on the worst case scenario figure of £88m, it was still in excess of the Council’s combined revenue from Council Tax and grants. It was clarified that the actuals from the budget process as well as savings progress were included in the Cabinet report, as budget monitoring reports became available.

Capital receipts could be used to offset revenue expenses but these had also been to finance the 2023/24 Capitalisation Direction. The 2024/25 Capitalisation Direction had not been borrowed as yet as internal borrowing was being used instead. Borrowing would be needed once liquidity ran short. The 2024/25 accounts were on track to be signed off in February 2026.

The Board agreed the following recommendations and action points:

 -   Numbers of redeployed library staff to be confirmed

-       Clarity to be provided on whether the number of people supported to claim benefits etc has gone down since the library closures

-       Other ways in which benefit claim support is provided to be detailed