Decision details

The Executive Mayor and Cabinet, RESOLVED;

2.1 to note the General Fund revenue budget outturn is forecast to overspend at financial year end by £19.8m at Period 5, 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 through the in-year Financial Recovery Plan as set out from paragraph 4.8.

2.3 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.9m (79.1%) against the total savings target of £27.7m as set out in paragraph 4.133.

2.4 to note the work that is continuing on the Council’s Transformation Programme as set out from paragraph 4.131.

2.5 to note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £8.0m.

2.6 to note the General Fund capital programme 2024-25 forecast underspend of £18.8m against the revised capital budget of £118.5m.

2.7 to note the HRA capital programme 2024-25 forecast underspend of £8.3m against the capital budget of £57.2m.

2.8 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 as set out from para 4.154. 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.

2.9 to note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained.

2.10 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