Agenda item

The Executive Mayor in Cabinet Resolved: 

2.1            to note the General Fund revenue budget outturn is forecast to underspend by £1.3mat Period 10, 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 4.106. 

2.3           to note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.101. 

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 £23.2magainst the capital budget of £124.0m. 

2.6           to note the HRA capital programme 2023-24 forecast overspend of £1.8m against the capital budget of £39.2m. 

2.7           to note the Council’s historic borrowing and subsequentdebt 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 Governmentits level of structural indebtedness to ensure it can deliver sustainable Local Government services. 

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

2.9           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 10 Financial Performance report which showed the council remains on track for a balance budget with a projection of a £1.3M underspend.

The Cabinet Member for Finance, Councillor Jason Cummings, shared with Cabinet that it was very encouraging to see that a slightly better than balanced budget is predicated although there are still opportunities for improvement and pressures to be revealed. Cabinet noted the two significant changes from the previous month;

-        The reduction in the overspend position with Children, Young People and Education which was positive.

-        There was a negative shift in Housing which was on the radar. The issues related primarily to sector pressures and the ongoing issues present at Sycamore House and associated costs.

Neither resulted in an overspend situation.

The Shadow Cabinet Member for Finance, Councillor Callton Young, asked why the negotiations with the freeholder regarding compensation had taken so long. Further, is the prudence now eluded to an accounting judgement because the council does not expect to conclude the negotiations during the current financial year or because the council does not expect to receive the compensation forecast. Lastly, are the sixty-three long-term voids which used to house one hundred and thirty three residents a cause for concern given the ongoing battle against homelessness in Croydon.

The Cabinet Member for Finance, Councillor Jason Cummings advised that the freehold is contested therefore a projected legal position will ensue, especially when issues relate to the original leases which were not clear when created and the complexities involved with fire safety. In regard to prudence, putting the costs in now is not acceptance of the end position but the correct approach to a perceived risk by this council in terms of any future impact. It is the prudence approach. In conclusion, it is a concern residence are still void, full occupancy is preferred but where there is a fire safety issue that risk should not be taken.

The Corporate Director of Homes, Susmita Sen added that regrettably voids are being held but are a significant part of the Transformation programme. Void rates are decreasing, in the last year seven hundred have been let.

The Executive Mayor added that voids were regrettable but seven hundred in 12 months highlights how proactive the council is on the issue.

The Executive Mayor in Cabinet Resolved: 

2.1         to note the General Fund revenue budget outturn is forecast to underspend by £1.3mat Period 10, 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 4.106. 

2.3       to note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.101. 

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 £23.2magainst the capital budget of £124.0m.

2.6       to note the HRA capital programme 2023-24 forecast overspend of £1.8m against the capital budget of £39.2m. 

2.7       to note the Council’s historic borrowing and subsequentdebt 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 its level of structural indebtedness to ensure it can deliver sustainable Local Government services. 

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

2.9       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.