Agenda item

RESOLVED:

1.1.         To note the General Fund revenue budget outturn is forecast to breakeven at Period 6, after the forecast utilisation of £63m capitalisation directions requested from DLUHC, £3.5m of the corporate risk contingency budget and £2.2m of the corporate economic demand pressures budget. It is not planned to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.         To approve the movement of £2.2m economic demand pressures budget from Corporate to the Housing directorate as set out in paragraph 4.95. This is a budget transfer within directorates, not a change to overall budget, and is in line with the intended purpose of the £5.5m economic demand pressures budget agreed at full Council in March 2023.

1.3.         To note the progress in MTFS savings achievement as set out in paragraph 4.105.

1.4.         To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.100.

1.5.         To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £12.0m.

1.6.         To note the General Fund capital programme 2023-24 forecast underspend of £17.6m against the revised capital budget of £144.7m.

1.7.         To note the HRA capital programme 2023-24 forecast overspend of £5.7m against the revised capital budget of £33.2m.

1.8.         To note the Council’s historic 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.

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

1.10.     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 2023-24 Period 6 Financial Performance Report that addressed the current forecast and continued to project a balance budget at the year end, which had been achieved through careful financial monitoring.

The Cabinet Member for Finance, Councillor Jason Cummings shared with Cabinet that the report was another overall forecast yearend balance position, highlighting that the HRA remained at the £12 million pounds overspend position as previously reported. He informed that the use of the corporate contingency had reduced from £4.1 million pounds to £3.5 million pounds though the aim remained for all departments that were showing overspend positions, to not use the corporate contingency at year end and would seek to bring overspend back within their normal budgets. The adult social care was credited for their improved departmental position within their budget which had reduced from a £1.4 million pounds overspend position down to a £0.2 million pounds position. Housing department had shown a £2.2 million pound pressure relating to emergency accommodation which was a sector wide pressure met using economic demands pressure budget that had been set aside for such events. Both changes were identified as potential movements and had crystallised as anticipated. Lastly, the Local Government finance policy statement was recently published, and it was clear that there was no fundamental change in the local government funding and the assumptions within the MTFS would therefore remain valid.

The Shadow Cabinet Member for Finance, Councillor Callton Young asked a question on the rationale for using the economic demand reserve in particular and in respect of the backlog of 2000 housing cases that had come to light and was there confidence that the external auditors would see that new challenge being rooted in the cost of living crisis. Further, why was the council perceived £5 million pounds from this year’s public health grant into the public health reserve when Croydon residents were in need of improved health care provision now and prefer not to wait until next year for it.

The Cabinet Member for Finance, Councillor Jason Cummings, responded that the use of the economic demand reserve was used purposely for such pressures as it was impossible to predict anything that would happen in each department over the course of the year. The emergency accommodation was particularly impacted due to the asylum-seeking support where there were over 1000 cases which was producing an in-year pressure. The use of the reserve would be for these very reasons. With regards to the public health care, it was noted that all expenditure on public health were reviewed on an on-going basis. The money spent would see the outcomes required which took planning, it would be used in a timely manner for the intended purpose and was different to instant demand pressures. The Cabinet Member for Health and Adult Social Care, Councillor Yvette Hopley, added that the health services were aware of the contingency within the budget and addressed that the money would be spent in a timely manner in line with the plans proposed throughout the year.

The Executive Mayor RESOLVED:

1.1.         To note the General Fund revenue budget outturn is forecast to breakeven at Period 6, after the forecast utilisation of £63m capitalisation directions requested from DLUHC, £3.5m of the corporate risk contingency budget and £2.2m of the corporate economic demand pressures budget. It is not planned to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.         To approve the movement of £2.2m economic demand pressures budget from Corporate to the Housing directorate as set out in paragraph 4.95. This is a budget transfer within directorates, not a change to overall budget, and is in line with the intended purpose of the £5.5m economic demand pressures budget agreed at full Council in March 2023.

1.3.         To note the progress in MTFS savings achievement as set out in paragraph 4.105.

1.4.         To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.100.

1.5.         To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £12.0m.

1.6.         To note the General Fund capital programme 2023-24 forecast underspend of £17.6m against the revised capital budget of £144.7m.

1.7.         To note the HRA capital programme 2023-24 forecast overspend of £5.7m against the revised capital budget of £33.2m.

1.8.         To note the Council’s historic 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.

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

1.10.      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.