Decision details

RESOLVED: To

1.1  Note the General Fund is projecting a net overspend of £9.483m as at Month 4. Service directorates are indicating a £24.252m overspend with a £14.769 munderspend corporately.

1.2  Note that a further number of risks and compensating opportunities may

materialise which would see the forecast year-end variance change. These indicate a net opportunity of £3.290m (risks £9.807m and opportunities of £13.097m) and are reported within Section 3 of this report. Should all these risks materialise, and none of the mitigations be effective, the Council is forecast to overspend by £19.290m. However, if none of the risks materialise and all the opportunities are delivered, the Council will underspend by £3.614m.

1.3  Note the further actions being taken, through development of the Deficit Recovery plan, to mitigate the projected overspend with a view to eliminating it by the end of the financial year. Further details are in paragraph 2.15.

1.4  To approve that the MTFS savings within Table 2b are not deliverable.

1.5  Note the Housing Revenue Account (HRA) is projecting an end of year position of a £3.147m overspend, mainly due to inflation in energy costs.

1.6  Note the Capital Programme spend to date for the General Fund of £7.882m (against a budget of £112.069m) with a projected forecast underspend of £5.207m for the end of the year.

1.7  Note the Housing Revenue Account Capital Programme spend to date of £3.478m (against a budget of £22.083m), with a projected forecast underspend of £4.819m for the end of the year.

1.8  Note, the above figures are predicated on forecasts from Month 4 to the year end and therefore could be subject to change as forecasts are made based on the best available information at this time.

1.9  Note, the Council continues to operate with the Spend Control Panel to ensure that tight financial control and assurance oversight are maintained, and a new financial management culture is being implemented across the organisation through increased scrutiny, such as the Assurance meetings, improved communication and budget manager training from CIPFA.

1.10       Note the full Financial Performance Reports for month 3 (June) and month 2 (May)are provided as appendix 3 and 4 respectively to this report.

1.11       Agree the capital schemes listed in paragraph 6.3 are removed from the Capital Programme as following a detailed review, it has been established that they do not meet capital expenditure criteria. These schemes will be assessed as to whether they are still relevant and if so, whether resources are available to deliver them within the General Fund budget for 2022/23.