Issue - meetings

To consider a report by Councillor Gwyneth Ellis, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet note the budgets set for 2023/24 and progress against the agreed strategy.

The Head of Finance and Audit presented the report detailing the latest financial position and progress against the agreed budget strategy.

A summary of the Council’s financial position was provided as follows –

·       the net revenue budget for 2023/24 was £250.793m (£233.696m in 2022/23)

·       an overspend of £3.119m was forecast for service and corporate budgets

·       highlighted current risks and assumptions relating to corporate budgets and individual service areas

·       detailed savings and efficiencies and increases in fees and charges (£8.172m)

·       provided a general update on the Housing Revenue Account, Treasury Management, Capital Plan and major projects.

The increase in the forecasted overspend on service and corporate budgets from £2.395m last month to £3.119m was highlighted.  The report included an assumed £700k income around waste financing which would need to be removed as it had since been confirmed that funding would not be received in the current financial year.  Spend on other items, such as school transport, would be known next month which would provide a clearer picture overall.  Services were reviewing their expenditure and income to mitigate the impact of the overall budget spend and other in-year action was being taken including exercising greater controls over recruitment, details of which had been shared with all members.  Whilst the budget mitigation reserve could be used to cover the overspend in the current year, it would reduce the resources available to meet unforeseen pressure in future years.

The Leader was grateful to the Head of Finance and Audit for the report which outlined the very difficult position facing the Council and difficult decisions ahead.

RESOLVED that Cabinet note the budgets set for 2023/24 and progress against the agreed strategy.