London boroughs face particular and major financial challenges in meeting rising demand for social care and other services. These challenges result from the demands of changing demographics and the need to conform to more rigorous inspection systems and expectations of improved performance.
Brent had a medium term financial strategy (MTFS) in place since the late 1990s, but it proved inadequate because it relied on limited data available to measure the impact of changing demographics. This led to the Council unexpectedly overspending on adults' and children’s care. As a result, balances fell to as little as half a million pounds in the early 2000s.
Brent decided to renew and strengthen its MTFS in 2003 by using reliable and tested activity data, backed by developing a risk-based approach to setting and maintaining balances. It also put in place ‘high-level monitoring’ arrangements which meant that measures to reduce overspends were subject to corporate overview and challenge by a high-level group chaired by the chief executive.
Brent matched this rigorous approach to activity monitoring and financial risk management with efficiency and 'invest to save' initiatives. Together, these enabled the Council to:
- achieve financial stability
- make significant savings
- simultaneously become one of England's fastest improving councils