Agenda item

This report presents information and analysis to the committee on the council’s financial performance against the approved budget and its forecast use of resources for the financial year 2024/25. This report also informs the committee on the delivery of planned savings for the financial year 2024/25 and serves as a mechanism for any finance approvals or adjustments that are required to the council’s approved budget.

The Committee RESOLVED:

To note:

1. The council’s General Fund forecast outturn revenue overspend of £18.9 million at P6 2024/25against the council approved budget of £533.7 million.

2. The performance on delivery of savings (Appendix A1, Section 3, Tables 3a and 3b).

3. The additional weighted net risk of £5.6 million per the risks and opportunities register (Appendix A1, Section 4, Tables 4a and 4b)

4. The council’s outturn position of £14.2 million overspend within the Housing Revenue Account to be transferred to the HRA general reserve at the year end (Appendix A1a, Section 5.3).

5. The council’s outturn position of a £31.6 million overspend (net £15.0m) in the Dedicated Schools Grant and that this brings the carry forward deficit to £90.2 million. Following the application of the DfE’s 24/25 Safety Valve combined with contribution from the General Fund a total £52.1 million is forecast to be carried forward at the year end in the DSG deficit reserve (Appendix A1, Section 5.4).

6. The breakeven position on Public Health services (Appendix A1, Section 5.5).

7. The breakeven position on the Bristol Harbour Fund. (Appendix A1, Section 5.6).

8. The council’s forecast underspend of £34.2 million against the Capital Programme revised budget 2024/25, comprised of £15.5 million underspend on the General Fund (including £8.1 million underspend on corporate contingency and adjustments) and £18.7 million underspend on the HRA. (Appendix A1, Section 6).

9. That SCIL budget allocation of £5.0 million will be utilised to support the Investment in the ‘New Cut’ harbour wall works to repair and strengthen the River Avon New Cut retaining walls. (Appendix A1, Section 6.4).

10. The urgent key decision by the Chief Executive in consultation with the Chair of Strategy and Resources Committee to approve spend of £1,021,500 to assist 22,700 free school meals food vouchers for the October and Christmas 2024 school holidays. (Appendix A3).

To approve (6 members voting in favour and 3 against):

- Revisions to the revised Capital Budget to incorporate the reprofiling of up to £18.7 million HRA budget into future years following the £18.7 million forecast underspend at P6.

The Committee considered a report (agenda item 8) presenting information and analysis on the Council’s financial performance against the approved budget and its forecast use of resources for the financial year 2024/25. The report also updated the Committee on progress on the delivery of in-year planned savings.

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

1. It was noted that in relation to the original revenue budget for 2024/25 approved by Full Council (£533.7m), the Period 6 total forecast service variation from that original budget was £35.2m. It was expected that this would be partially offset by £16.2m of forecast contingent budget for inflation and optimism bias currently held corporately so that the total net forecast revenue overspend at Period 6 was £18.9m (3.5% of the original approved budget).

2. In response to a question, it was noted that depending on the financial position at financial year end, if necessary and if there was no alternative, the Council would need to consider utilising earmarked reserves to achieve a balanced budget; under this scenario, these reserves would need to be replaced in future years. The avoidance of this type of scenario was a key reason why the budget process had been brought forward this year. 

3. It was noted that the overall financial position was showing a broadly improving trend since the summer in relation to the net forecast overspend; there was, however, still significant work to be undertaken to deliver the required in-year savings.

4. In response to a question, the Chair agreed to discuss with officers and the Chair of the Finance Sub-Committee an appropriate mechanism for the Sub-Committee reporting progress on their work to the Strategy and Resources Policy Committee.

The Chair then moved the report recommendations, noting that there were 10 recommendations for noting by the Committee and 1 recommendation for approval.

This was seconded by Cllr Gooch.

The Committee RESOLVED:

To note:

1. The council’s General Fund forecast outturn revenue overspend of £18.9 million at P6 2024/25against the council approved budget of £533.7 million.

2. The performance on delivery of savings (Appendix A1, Section 3, Tables 3a and 3b).

3. The additional weighted net risk of £5.6 million per the risks and opportunities register (Appendix A1, Section 4, Tables 4a and 4b).

4. The council’s outturn position of £14.2 million overspend within the Housing Revenue Account to be transferred to the HRA general reserve at the year end (Appendix A1a, Section 5.3).

5. The council’s outturn position of a £31.6 million overspend (net £15.0m) in the Dedicated Schools Grant and that this brings the carry forward deficit to £90.2 million. Following the application of the DfE’s 24/25 Safety Valve combined with contribution from the General Fund a total £52.1 million is forecast to be carried forward at the year end in the DSG deficit reserve (Appendix A1, Section 5.4).

6. The breakeven position on Public Health services (Appendix A1, Section 5.5).

7. The breakeven position on the Bristol Harbour Fund. (Appendix A1, Section 5.6).

8. The council’s forecast underspend of £34.2 million against the Capital Programme revised budget 2024/25, comprised of £15.5 million underspend on the General Fund (including £8.1 million underspend on corporate contingency and adjustments) and £18.7 million underspend on the HRA. (Appendix A1, Section 6).

9. That SCIL budget allocation of £5.0 million will be utilised to support the Investment in the ‘New Cut’ harbour wall works to repair and strengthen the River Avon New Cut retaining walls. (Appendix A1, Section 6.4).

10. The urgent key decision by the Chief Executive in consultation with the Chair of Strategy and Resources Committee to approve spend of £1,021,500 to assist 22,700 free school meals food vouchers for the October and Christmas 2024 school holidays. (Appendix A3).

To approve (6 members voting in favour and 3 against):

- Revisions to the revised Capital Budget to incorporate the reprofiling of up to £18.7 million HRA budget into future years following the £18.7 million forecast underspend at P6.