Issue - meetings

The Council’s revenue and capital budget for 2024/25 was agreed by Full Council on 28 February 2024.This report presents information and analysis to the Strategy and Resources Policy Committee on the Council’s financial performance against that approved budget and its forecast use of resources for the financial year 2024/25.

The report also informs the Committee on the delivery of planned savings for the financial year 2024/25.

The Committee RESOLVED:

To note:

1. The council’s General Fund forecast outturn revenue overspend of £22.3 million against the councilapproved budget at P3 2024/25.

2. The performance on delivery of savings (Appendix A1, section 3, Tables 4a-4b).

3. The additional weighted net risk of £10.5 million per the risks and opportunities register (Appendix A1, section 4, Tables 5a-5b)

4. The council’s outturn position of £9.3 million overspend within the Housing Revenue Account to be transferred to the HRA general reserve (Appendix A1, section 5.2).

5. The council’s position on its General Reserve and on the Housing Revenue Account’s General Reserve.

6. That officers are developing productivity plans following the Council Tax Reduction Scheme update and amendment (S&R Committee, agenda item 9, 15 July 2024).

7. The council’s outturn position of a net £10.8 million overspend in the Dedicated Schools Grant following the application of the DfE’s 24/25 Safety Valve combined with contribution from the General Fund (totalling £15.9m) and that a total £47.9 million is to be carried forward in the DSG deficit reserve (Appendix A1, section 5.3).

8. The breakeven position on Public Health services (Appendix A1, section 5.4).

9. The council’s forecast underspend of £6.4 million against the Capital Programme revised budget 2024/25, comprised of £7.0 million underspend on the General Fund and £0.6 million overspend on the HRA. (Appendix A1, section 6).

The Committee considered a report (agenda item 7) that presented information and analysis on the Council’s financial performance against the approved 2024/25 budget and the forecast use of resources for the financial year 2024/25.  The report also updated the committee on the delivery of planned savings for the financial year 2024/25.

It was noted that there were no decisions to be taken on this report which was for information.

Summary of main points raised/noted in discussion of this item:

1. In opening the discussion, the Chair commented as follows:

- As highlighted in the report, the Council faced very significant and immediate financial challenges.

- Increasing demand for services allied with high inflation had been driving up costs whilst the resources available to the Council to respond were being stretched thinner each year without the prospect of extra funding.

- It was important to recognise that this was a national challenge affecting all councils, with some having had no option but to declare bankruptcy. The list of councils moving nearer to this position was also growing.

- The Period 3 finance update set out the stark reality that the Council faced another year of multi-million pounds of overspend. The latest forecast estimates indicated that the Council was on course for a General Fund budget pressure of £22.3 million, an increased figure from the previous estimate of £12.5 million.   The report also set out in detail where the most significant challenges were but also, importantly, where efforts were being focused to try and alleviate the financial pressure.

- Every aspect of Council expenditure now faced scrutiny, and it would be essential to maximise savings and deliver the identified mitigations; regular financial updates would be published and discussed at this committee and by the other policy committees.

2. The Director: Finance highlighted the following:

- As referred to by the Chair, the Period 3 outturn showed a deteriorating financial position for the Council. 

- In addition to the Period 3 forecast showing a total net forecast revenue overspend of £22.3m, additional risks and opportunities carried a weighted extra net potential risk of £10.5m.

- The report also highlighted the Period 3 position in relation to the Housing Revenue Account, the Dedicated Schools Grant, the Public Health Grant and the Capital Programme.

3. A question was raised about the cost implications faced by the Council caused by the drop in performance in turning round void council dwellings.  The Executive Director: Growth and Regeneration commented that in the last couple of years, performance on voids had not been satisfactory and had fallen below national averages. Performance had now improved, but remained an area that the housing service would continue to prioritise.  It was noted that the service also currently faced a particular requirement to focus on the compliance work around housing and consumer standards following the published judgement from the Regulator of Social Housing which indicated that significant improvement was needed.

4. An issue was raised about the ongoing need to develop ‘invest  ...  view the full minutes text for item 29