Agenda item

To receive the Budget Monitoring Report for Month 3 (Quarter 1) 2023-2024 for the General Fund and Housing Revenue Accounts.

The committee received the Quarter 1 Budget monitoring reports and noted the issues raised and forecast year-end position of services currently against the budget proposed. The committee would receive monthly budget monitoring reports in the future so that targets/actions can be scrutinised.

Jason Vaughan had provided the committee with the Quarter 1 reports which were the first budget reports as the new authority. He highlighted the following areas:

Page 44 - 3.3 projected outturn position is £522m against a budget of £493.4m, the net adverse variance being £28.6m and details listed

Page 47 – general themes that are adversely impacting upon the Council`s finances include High inflation, Interest rates, rising complexity and costs of care and the labour market.

Page 49 – summary of the budget shown for 2023/24 and also summarised controls for service directors who are responsible for their budgets and so actions sit with them to reduce spend and find savings opportunities.

Page 50 – Recommendations to the Executive proposed actions

Page 53 – Outturn 2022/2023 showing that the overall overspend is likely to be £20m which would need to be funded from reserves and thus reducing the Council`s ability to manage issues in this financial year and flexibility in budget planning and sustainability – this will be reviewed over the summer to ensure sufficient reserves to meet risks.

Page 105 to Page 120 – details the Housing Revenue Account with the approved budget for 2023/24 being detailed on Page 120.

In response to questions and comments from the committee, it was explained that short term actions were a priority and that officers were also working on the following year’s budget as all actions interlinked. Service Directors were being briefed and any capital bids, costs and savings have been requested by mid-September for the Executive to set the budget. There was also a need to

establish the grants being paid for various services from central government.

It was confirmed that the 17 key areas will be updated and any savings from services would be included, the proposals will be brought back to Scrutiny once completed and so may be earlier than February 2024. It was reiterated that monthly updates will be provided to the committee to ensure that targets and the management of impacts were tracked, this will also enable the committee to help and progress the work. It was suggested that all Councillors and not just this committee be provided with the information sheets so all are aware of the financial situation.

In response to questions regarding the waste services, Infrastructure and Transport grants, the delay to the new school opening and cost implications would all be responded to in writing.

Councillor Leyshon confirmed that the details would be worked on over the next months, a MTFP board set up and they would also report back via the Executive. It was noted that there was currently a hiatus of LGR savings and were waiting for the Transformation project to start properly and so no predications could be made at present.

Resolved:

The committee received the Quarter 1 Budget monitoring reports and noted the issues raised and forecast year-end position of services currently against the budget proposed. The committee were notified that they would receive monthly budget monitoring reports in the future so that targets/actions can be scrutinised.