Issue - meetings

Report of Director of Finance and Performance

Lead Cabinet member: Councillor Daniel Butcher

(Key decision):

(1) To note the forecast outturn position for 2024/25 and associated risks.

(2) To delegate authority to the Director of Finance and Performance and the portfolio holder for finance to apply the required budget virements to support effective management of the overall budget.

(3) To approve the carry forward of 23/24 Capital Programme slippage to 2024/25 ahead of a review of the overall programme by the Capital Programme Oversight Board

(4) To note Appendix 1 and 2 to the report.

The Cabinet considered the report of the Director of Finance and Performance, providing an assessment of the Council’s financial performance against its approved 2024/25 budget, incorporating key financial risks, issues and opportunities for the General Fund and the Housing Revenue Account (HRA).

The report detailed that the early forecast outturn position for 2024/25 at the end of Quarter 1 (1 April- 30 June 2024), before the actions outlined in the report was an overspend of £2.476 million. Key savings proposals were outlined in agenda item 10 (Stability and Growth Programme) to significantly reduce the projected outturn position, in order to avoid the risk of a Section 114 notice being issued.

Visiting member, Councillor Shore, addressed the Cabinet on this item. She queried whether the council’s savings target of £7 million as part of its extended Stability and Growth programme plan was realistic, in the context of its overall expenditure.

Visiting member, Councillor Small, addressed the Cabinet on this item. He commented on the significant projected overspend, 3 months after setting a balanced budget at Full Council. He commented that whilst homelessness costs to the council were significant, the council’s current debt position was the main contributing factor to the current financial position. He asked whether the council would be solvent by the end of the financial year.

In response, the Cabinet commented on the significant challenges of setting a balanced budget and delivering significant savings in the context of a lack of support from central government with regards to the homelessness pressures. It was also confirmed that several savings as part of the 24/25 budget had been reprofiled into the latest round of savings, as set out in agenda item 10.

The significant financial impact on councils and human impact of homelessness and temporary accommodation was discussed extensively. It was commented that many councils across the country were experiencing similar issues. The council would continue to lobby central government on the topic.

The Chief Finance Officer commented on the strategic decisions to bring the Council back within budget, which included a 3-week period of reviewing all budgets on a line-by-line basis. Further details were contained at section 1.6 of the report.

Resolved (Key decision):

(1) To note the forecast outturn position for 2024/25 and associated risks.

(2) To delegate authority to the Director of Finance and Performance and the portfolio holder for finance to apply the required budget virements to support effective management of the overall budget.

(3) To approve the carry forward of 23/24 Capital Programme slippage to 2024/25 ahead of a review of the overall programme by the Capital Programme Oversight Board.

(4) To note Appendix 1 and 2 to the report.

Reason for decision:

To enable Cabinet members to consider the Council’s financial performance for 2024/25.