Agenda item

2024/25 General Fund Revenue and Capital Budget Monitoring Report - Month 6 (Qtr2)

Decision:

Following consideration of the officer report, appendices and discussion, the Executive resolved to:

Note Council is now forecasting a balanced revenue position (on-budget).

Note the total Council Revenue forecast underspend of £8.479m for the year. There is a forecast underspend of £2.419m within Service Directorates for 2024/25 and the Corporate Contingency of £6.000m, whilst remains unallocated it has been released into the forecast outturn within budget lines Table 1.

Note that the planned use of reserves of £36.800m for Medium Term Financial Plan (MTFP) Support towards the budget is forecast to reduce by of £8.479m to £28.321m, due to the forecast underspend within budget lines.

Agree that mitigating actions are to be identified in order to reduce any overspends, to take action and to contribute to the long-term financial sustainability of the authority.

Agree that the Council continues with the aim of avoiding a Section 114 notice by taking all of the necessary actions and continuing to operate as if one has been issued.

Note the progress and delivered savings of £13.114m of the approved savings programme as set out in Table 2 and Appendix J.

Note that work will continue to find mitigating or substitute savings for the £0.432m of Red unachievable savings, deliver the £5.142m Amber at risk savings and the £20.189m Green on track savings.

Note the in-year forecast overspend on the Dedicated Schools Grant of £28.259m, an increase of £2.419m from Month 5 (in paragraph 14).

Note the total forecast Dedicated Schools Grant year-end deficit of £64.199m as set out in Appendix C.

Note the collection rates for Council Tax and Business Rates as set out in paragraph 24.

Note the quarterly update on the prudential indicators detailed in Appendix L.

Note the outstanding debt position as detailed in Chart 3 and Appendix M.

Note the level of General Reserves is £52.4m (risk-based assessment – minimum £30m, maximum £60m).

Approve the additional Quarter 2 capital slippage of £75.690m into future years.

Approve £22.123m of externally funded additions to the capital programme, as detailed in Section 34 of this report.

Note £2.708m of virements within the capital programme, as shown in Appendix O.

Minutes:

The Leader of the Council, Cllr Bill Revans, invited the Deputy Leader and the Lead Member for Finance, Procurement and Performance, Cllr Liz Leyshon, to introduce the report. Cllr Leyshon highlighted that this report was for Quarter 2, up to the end of September; that the Capital and Revenue reports had been combined; the current one-off and ongoing revenue pressures; the status of the reserves; the concerns around the Dedicated Schools Grant (DSG) deficit.

Cllr Leyshon proceeded to hand over to Nicola Hix, Service Director Finance and Procurement, who went through the revenue and capital figures in detail and highlighted the positive movements in many service directorates; the challenges in Children’s Services, including high placement costs and the DSG; that only 34% of savings in this year’s budget had been achieved and the importance of those remaining being delivered; the feedback from Scrutiny on the report.

The Leader of the Council invited comments from Committee Members and other Members present, with officers providing responses as appropriate. Questions and points raised included: the successful savings made in Adults Services and the overspends still being worked on; improvements in forecasting and modelling in Children’s Services and challenges with placement costs, DSG, and the High Needs Block; debt outstanding to the council and whether there is a reasonable expectation to collect it; slippage in the capital programme and the pressures and potential costs associated with this; delivering alternative savings for those that are not able to be achieved.

The Leader of the Council concluded the discussion and proceeded to a vote on the recommendations, which were agreed unanimously.

Following consideration of the officer report, appendices and discussion, the Executive resolved to:

Note Council is now forecasting a balanced revenue position (on-budget).

Note the total Council Revenue forecast underspend of £8.479m for the year. There is a forecast underspend of £2.419m within Service Directorates for 2024/25 and the Corporate Contingency of £6.000m, whilst remains unallocated it has been released into the forecast outturn within budget lines Table 1.

Note that the planned use of reserves of £36.800m for Medium Term Financial Plan (MTFP) Support towards the budget is forecast to reduce by of £8.479m to £28.321m, due to the forecast underspend within budget lines.

Agree that mitigating actions are to be identified in order to reduce any overspends, to take action and to contribute to the long-term financial sustainability of the authority.

Agree that the Council continues with the aim of avoiding a Section 114 notice by taking all of the necessary actions and continuing to operate as if one has been issued.

Note the progress and delivered savings of £13.114m of the approved savings programme as set out in Table 2 and Appendix J.

Note that work will continue to find mitigating or substitute savings for the £0.432m of Red unachievable savings, deliver the £5.142m Amber at risk savings and the £20.189m Green on track savings.

Note the in-year forecast overspend on the Dedicated Schools Grant of £28.259m, an increase of £2.419m from Month 5 (in paragraph 14).

Note the total forecast Dedicated Schools Grant year-end deficit of £64.199m as set out in Appendix C.

Note the collection rates for Council Tax and Business Rates as set out in paragraph 24.

Note the quarterly update on the prudential indicators detailed in Appendix L.

Note the outstanding debt position as detailed in Chart 3 and Appendix M.

Note the level of General Reserves is £52.4m (risk-based assessment – minimum £30m, maximum £60m).

Approve the additional Quarter 2 capital slippage of £75.690m into future years.

Approve £22.123m of externally funded additions to the capital programme, as detailed in Section 34 of this report.

Note £2.708m of virements within the capital programme, as shown in Appendix O.

Supporting documents: