Decision details

Cabinet RESOLVED;

2.1 to note the General Fund revenue budget outturn is forecast to overspend at financial year end by £15.6m at Period 2, 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.

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. It should not be underestimated what a challenge this will be against the background of increased demand pressures which are continuing to build across local government and increased market prices. Forecast overspend pressures are also demonstrated in the Month 2 and Quarter 1 reports published by other London councils. However, the Council will still strive to bring its 2024-25 budget into balance including through the in-year Financial Recovery Plan as set out from para 4.8.

2.3 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £20.8m (75.1%) against the total savings target of £27.7m as set out in paragraph 4.118.

2.4 to note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.115.

2.5 to note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £2.0m.

2.6 to approve the net budget increase in 2024-25 General Fund capital programme budgets resulting from 2023-24 net slippage of £19.7m.

2.7 to note the General Fund capital programme 2024-25 forecast underspend of £1.0m against the revised capital budget of £110.0m.

2.8 to note the HRA capital programme 2024-25 forecast underspend of £4.9m against the capital budget of £57.2m.

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. 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 to ensure that tight 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.