Agenda item

RESOLVED:

1.1.         To note the General Fund revenue budget outturn is forecast to breakeven at Period 2, after the forecast utilisation of £63m capitalisation directions requested from DLUHC and £3.8m of the corporate risk contingency budget. It is not planned in advance to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.         To approve an increase to revenue expenditure budgets fully funded by new government funding for the Homelessness Prevention Grant (£1.9m) and Asylum Dispersal Scheme (£0.9m).

1.3.         To note the progress in MTFS savings achievement as set out in paragraph 4.85.

1.4.         To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.81.

1.5.         To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £1.7m.

1.6.         To approve the net budget increase in 2023-24 General Fund and HRA capital programme budgets resulting from 2022-23 net slippage of £18.422m (GF) and £0.625m (HRA).

1.7.         To approve a net budget increase to the 2022-26 General Fund capital programme budget of £1.541m (in addition to slippage), as set out in paragraph 4.101.

1.8.         To note the General Fund capital programme 2023-24 forecast underspend of £0.040m against the revised capital budget (to be agreed by Council) of £144.332m.

1.9.         To approve a budget increase to the 2022-26 HRA capital programme budget of £11.232m (in addition to slippage), as set out in paragraph 4.102.

1.10.     To note the HRA capital programme 2023-24 forecast overspend of £4.073m against the revised capital budget (to be agreed by Council) of £33.248m.

1.11.     To note the Council’s historic legacy borrowing and debt burden continues to be critical to the sustainability of the Council’s revenue budget. Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regards to its level of indebtedness and balancing the budget to ensure it can deliver sustainable local government services.

1.12.     To note that the Council continues to operate Spend Control Panels to ensure that tight financial control and assurance oversight are maintained.

1.13.     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 2023-2024 Period 2 Financial Performance Report which remained on track for a balanced budget.

The Cabinet Member for Finance, Councillor Jason Cummings, informed that to be in a position of Period 2 where we are predicting a year end balance was welcomed and hoped for continuation of this throughout the year. The report highlighted departmental overspend which was mainly demand-led in particularly to do with placemen costs and the total year end position that generate sat within the £5 million contingency in the budget so it would not result in the year end overspend. It was noted that there was intention for all departmental budgets be helped through the course of the year with overspend pulled back in individual departments.

The Shadow Cabinet Member for Finance, Councillor Callton Young, noted the councils hope to avoid overspend in the children’s and adults department, and asked how confident was the council’s capacity to deliver the savings at the pace required, and the confidence of the deliverable ability of another robust adult’s social care savings plan and making the next plan land.

The Executive Mayor confirmed confidence as there was a responsible physical financial management in place within the council and dealing with the budgets of the council in an appropriate way, understanding the position the council was in. The Cabinet Member for Finance, Councillor Jason Cummings, added his confidence in the council’s departmental ability to deliver savings targets, in particularly within the adult’s social care department. Demand pressure sat outside of the ability for the council to control, and as such a need for service would be required which costs were being managed.

The Leader of the Opposition, Councillor Stuart King, noted that it was an error not to include the Period 1 financial report figures to gain a fuller picture of the financial performance report, and further noted a change in the reporting on the quantifying risks and opportunities with values attached was no longer provided.

The Cabinet Member for Finance, Councillor Jason Cummings, informed that the Period 1 financial report did not provide any accuracy in figures which was reliable to make predictions and thus it was better for reports to start at Period 2. The Director of Finance, Allister Bannin, shared with Cabinet the reason for the change in format within the report, highlighting that it was best for the quantifiable and non-quantifiable risks to be added within each directorate forecast to include in the narrative to review their position that included the risks and how it was being dealt with, and not hidden within the appendices.

The Executive Mayor in Cabinet RESOLVED:

1.1.         To note the General Fund revenue budget outturn is forecast to breakeven at Period 2, after the forecast utilisation of £63m capitalisation directions requested from DLUHC and £3.8m of the corporate risk contingency budget. It is not planned in advance to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.         To approve an increase to revenue expenditure budgets fully funded by new government funding for the Homelessness Prevention Grant (£1.9m) and Asylum Dispersal Scheme (£0.9m).

1.3.         To note the progress in MTFS savings achievement as set out in paragraph 4.85.

1.4.         To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.81.

1.5.         To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £1.7m.

1.6.         To approve the net budget increase in 2023-24 General Fund and HRA capital programme budgets resulting from 2022-23 net slippage of £18.422m (GF) and £0.625m (HRA).

1.7.         To approve a net budget increase to the 2022-26 General Fund capital programme budget of £1.541m (in addition to slippage), as set out in paragraph 4.101.

1.8.         To note the General Fund capital programme 2023-24 forecast underspend of £0.040m against the revised capital budget (to be agreed by Council) of £144.332m.

1.9.         To approve a budget increase to the 2022-26 HRA capital programme budget of £11.232m (in addition to slippage), as set out in paragraph 4.102.

1.10.      To note the HRA capital programme 2023-24 forecast overspend of £4.073m against the revised capital budget (to be agreed by Council) of £33.248m.

1.11.      To note the Council’s historic legacy borrowing and debt burden continues to be critical to the sustainability of the Council’s revenue budget. Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regards to its level of indebtedness and balancing the budget to ensure it can deliver sustainable local government services.

1.12.      To note that the Council continues to operate Spend Control Panels to ensure that tight financial control and assurance oversight are maintained.

1.13.      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.