Agenda item

Cabinet RESOLVED to:

2.1     to note the General Fund revenue budget provisional outturn breakeven position, after the budgeted utilisation of £63m capitalisation directions requested from the Ministry of Housing, Communities and Local Government (MHCLG).  The risk contingency budget of £5m was not required to be utilised for the Council’s overall financial position and has, therefore, been used together with the service and corporate underspends to increase the Council’s Business Risk Reserve by £10.1m given the financial challenges currently facing local government.

2.2     to note that the provisional outturn is the position prior to final accounting adjustments (e.g. capital accounting/revaluation/receipts and any impact from potential changes in prior years’ accounts which are still to be audited (e.g. debt calculations) and the external audit of the 2023-24 accounts.

2.3     to note that the significant level of 2024-25 savings (£23.731m), agreed by Full Council in March 2024, include reduction in budgets that are delivering underspends in 2023-24 and will, therefore, not be recurrent underspends in 2024-25.

2.4     to note the provisional outturn Medium Term Financial Strategy (MTFS) savings achievement of £33.2m (91.9%) against the total savings target of £36.1m as set out in paragraph 4.93.

2.5     to note the provisional outturn expenditure on the Council’s Transformation Programme as set out from paragraph 4.89.

2.6     to note the Housing Revenue Account (HRA) revenue budget provisional outturn overspend of £9.9m.

2.7     to note the General Fund capital programme 2023-24 provisional outturn underspend of £29.0m against the capital budget of £124.0m.

2.8     to note the HRA capital programme 2023-24 provisional outturn underspend of £3.5m against the capital budget of £39.2m.

2.9     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 MHCLG continues.  The Council submitted a Financial Sustainability Plan on 22 May 2024 providing options of further financial support from Government in regard to its level of structural indebtedness to ensure it can deliver sustainable Local Government services.

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

The Executive Mayor introduced the 2023-24 Provisional Outturn Financial Performance Report.

The Cabinet Member for Finance, Councillor Jason Cummings was pleased to present to Cabinet a Provisional Outturn position which showed balance, even if supported by a £63 million capitalisation direction. Cabinet noted that this showed the approach and level of fiscal discipline that has been undertaken by all departments within the council. Cabinet were advised that there are significant pressures within year and many of those will return this year in an escalated fashion.

Deputy Leader of the Opposition and Shadow Cabinet Member for Finance, Councillor Callton Young thanked the team for their hard work and poised two questions to Cabinet. What impact does the increase of £15M in council borrowing, tapping into the reserves and an £11M underspend in staff costs have on council efficiency, performance and the ability to deliver exceptional services, and the transformation over the year combined. Secondly, why did it take so long to respond to the letter from MHCLG on debt write-off?

The Cabinet Member for Finance, Councillor Jason Cummings responded explaining that staff vacancies is a normal part of operations in large organisations; when reviewed at the end of the year these contribute to the saving proposals for future years budgets. In regard to reserves and contingencies they are there to be used at a time when they are needed. Cabinet noted that the £15M was borrowed as at the year end position the Lime Green Road site had not completed but did so shortly afterwards.

The Corporate Director for Resources (S151), Jane West added that reserves were used during the year as the funds had been set aside for specific purposes. 

The Executive Mayor added that in terms of the letter to MHCLG it is an ongoing conversation, and Councillor Jason Cummings confirmed that no deadlines had been missed when replying.

Cabinet RESOLVED to:

2.1      to note the General Fund revenue budget provisional outturn breakeven position, after the budgeted utilisation of £63m capitalisation directions requested from the Ministry of Housing, Communities and Local Government (MHCLG).  The risk contingency budget of £5m was not required to be utilised for the Council’s overall financial position and has, therefore, been used together with the service and corporate underspends to increase the Council’s Business Risk Reserve by £10.1m given the financial challenges currently facing local government.

2.2      to note that the provisional outturn is the position prior to final accounting adjustments (e.g. capital accounting/revaluation/receipts and any impact from potential changes in prior years’ accounts which are still to be audited (e.g. debt calculations) and the external audit of the 2023-24 accounts.

2.3      to note that the significant level of 2024-25 savings (£23.731m), agreed by Full Council in March 2024, include reduction in budgets that are delivering underspends in 2023-24 and will, therefore, not be recurrent underspends in 2024-25.

2.4      to note the provisional outturn Medium Term Financial Strategy (MTFS) savings achievement of £33.2m (91.9%) against the total savings target of £36.1m as set out in paragraph 4.93.

2.5      to note the provisional outturn expenditure on the Council’s Transformation Programme as set out from paragraph 4.89.

2.6      to note the Housing Revenue Account (HRA) revenue budget provisional outturn overspend of £9.9m.

2.7      to note the General Fund capital programme 2023-24 provisional outturn underspend of £29.0m against the capital budget of £124.0m.

2.8      to note the HRA capital programme 2023-24 provisional outturn underspend of £3.5m against the capital budget of £39.2m.

2.9      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 MHCLG continues.  The Council submitted a Financial Sustainability Plan on 22 May 2024 providing options of further financial support from Government in regard to its level of structural indebtedness to ensure it can deliver sustainable Local Government services.

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