Issue - meetings

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

The Executive Mayor introduced the report firstly noting the continuing financial challenges due to demand led pressures for local authorities across London and nationally. The council was awaiting details following the Government's budget announcements regarding the additional funding for local government, National Insurance increases and effects of cuts to the winter fuel allowance.

The administration remained committed to tackling the pressures at a local level and following implementation of recovery strategies and spend control measures there was a reduction in the Council's projected year end overspend.

Cabinet Member for Finance, Councillor Jason Cummings advised of the £800k improvement split between several departments, but also the increased HRA overspend in relation to repairs. The report included an expanded section regarding the in-year recovery plan as previously requested by Scrutiny and Overview Committee.

Corporate Director of Resources and Section 151 Officer, Jane West provided assurance that the Council's Corporate Management Team was focussed on the budget issues and a corporate cross council approach was being taken.

Shadow Cabinet Member for Finance, Councillor Callton Young noted the small reduction to the £20 million projected overspend for 2024/25 detailed within the report. The ongoing demand and challenges to make savings in Housing, Adult and Children's were a risk to achieving a balanced budget. Further information and clarification were sought on the 'Plan B' to achieve a balanced budget.

The Executive Mayor responded the approach to tackling the issues was through financial controls and a one council approach. Fixing the Council's finances was the key focus for members and staff. The additional funding announced by Government was not yet known and the Council had additional financial burdens.

Cabinet Member for Finance, Councillor Jason Cummings advised the Local Government Finance settlement was expected by 19 December 2024 and along with further detail on the output of the autumn statement, this would enable the Council to make a more accurate forecast of the year end position. The Council was committed to balancing the in-year overspend in departments. There were alternative means available, and these would be reviewed once the settlement and autumn statement details were known. A update on this was expected at Cabinet in January 2025.

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  ...  view the full minutes text for item 237