Agenda item

Executive Mayor in Cabinet RESOLVED:

2.1            to note the General Fund revenue budget outturn is forecast to underspend by £1.5m at Period 9, after the budgeted utilisation of £63m capitalisation directions requested from DLUHC.

2.2            to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £32.4m (89.8%) against the total savings target of £36.1m as set out in paragraph 4.102.

2.3            to note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.97.

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

2.5            to note the General Fund capital programme 2023-24 forecast underspend of £20.0m against the revised capital budget of £124.0m.  The 2023-24 General Fund capital budget has been updated to reflect the changes agreed through the Capital Programme and Capital Strategy 2023-29 report at the Cabinet meeting on 14 February 2024.

2.6            to note the HRA capital programme 2023-24 forecast overspend of £1.8m against the revised capital budget of £37.2m.  The 2023-24 HRA capital budget has been updated to reflect the changes agreed through the Capital Programme and Capital Strategy 2023-29 report at the Cabinet meeting on 14 February 2024.

2.7            to approve within the multi-year HRA capital budget the re-profiling of £2.071m budget from 2024-25 to 2023-24.  This is to align the budget with the acquisition of the Belgrave and Grosvenor site and freehold of the previous Printworks site on Portland Place from Brick By Brick in March 2024, as set out from paragraph 4.141.

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.  Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regard to its level of structural indebtedness to ensure it can deliver sustainable local government services.

2.9            to note that the Council continues to operate Spend Control Panels to ensure that tight 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 Period 9 Financial Performance 2023/24 report which provides the Council’s financial performance as at Period 9 (December 2023) for the General Fund, Housing Revenue Account (HRA) and the Capital Programme.

The Cabinet Member for Finance, Councillor Jason Cummings, shared with Cabinet that there had been a small improvement in the Council's overall forecast position for year end. The pressures the council are under and indeed all councils in terms of housing costs and children's & adults remain but was pleased to see no new movement within the report which will continue to be monitored as year-end approaches.

Corporate Director of Resources & S151 Officer, Jane West added that although balanced it was with the use of the £63 million of capitalisation directions.

The Shadow Cabinet Member for Finance, Councillor Callton Young, asked for an explanation for the £8,000,000 gap in savings via placements and care packages through demands management. Further, were there any risks associated with the long standing staffing shortages referred to in the report.

The Cabinet Member for Finance, Councillor Jason Cummings responded that the adult savings were covered extensively at Overview and Scrutiny as part of the Financial Monitoring report. Individual figures based within the reporting pack refer to individual elements of those savings. Around 89% of the overall savings figure is being achieved and takes full account of any potential savings that may not be achieved during the year. Adult and Social Care are meeting and so far this year exceeding their savings target. In regard to staff vacancies, it's not a case of large numbers of vacancies being kept opened to achieve savings it is just the normal operation of the council, and all other councils.

Corporate Director of Resources & S151 Officer, Jane West drew attention to the table within the achievement of savings at paragraph 4.102 which showed that adult social care had an over delivery off the savings so are ahead of themselves in terms of preparing for next year.

 Table showing 2023-24 forecast savings achievement by directorate

The Executive Mayor in Cabinet RESOLVED:

2.1               to note the General Fund revenue budget outturn is forecast to underspend by £1.5m at Period 9, after the budgeted utilisation of £63m capitalisation directions requested from DLUHC.

2.2               to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £32.4m (89.8%) against the total savings target of £36.1m as set out in paragraph 4.102.

2.3               to note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.97.

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

2.5               to note the General Fund capital programme 2023-24 forecast underspend of £20.0m against the revised capital budget of £124.0m.  The 2023-24 General Fund capital budget has been updated to reflect the changes agreed through the Capital Programme and Capital Strategy 2023-29 report at the Cabinet meeting on 14 February 2024.

2.6               to note the HRA capital programme 2023-24 forecast overspend of £1.8m against the revised capital budget of £37.2m.  The 2023-24 HRA capital budget has been updated to reflect the changes agreed through the Capital Programme and Capital Strategy 2023-29 report at the Cabinet meeting on 14 February 2024.

2.7               to approve within the multi-year HRA capital budget the re-profiling of £2.071m budget from 2024-25 to 2023-24.  This is to align the budget with the acquisition of the Belgrave and Grosvenor site and freehold of the previous Printworks site on Portland Place from Brick By Brick in March 2024, as set out from paragraph 4.141.

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.  Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regard to its level of structural indebtedness to ensure it can deliver sustainable local government services.