Issue - meetings

Report of the Director of Finance.  To be introduced by the Cabinet Member for Finance and Local Investment.

The Cabinet Member for Finance and Local Investment introduced the report which set out the Quarter 1 finance update

In response to questions from Councillor da Costa, the following was noted:

-       The Council had managed to achieve some savings within Adult Social Care over the past 10 years, and it remained a material element of the Council’s savings agenda.  It was important to note that Adult Social Care had been heavily exposed to external effects – Covid and inflation changes in the market – so whilst savings may not be as high as in other areas, they had still been achieved.

-       Most Local Authorities spent around 70% of the budget on Adults and Childrens.  The report also noted an increased pressure on Housing Demand and Housing Needs.

-       Work was underway to prepare for the Medium Term Financial Strategy, and the budget for next year and future years.

-       There was a national capacity issue with auditors, and many Local Authorities were waiting for their accounts to be audited.

RESOLVED to

1.            Note the forecast total revenue outturn variance for the General Fund of £20.5m comprising £16.3m base budget and £4.2m (24%) savings delivery challenges and note that Directors are developing actions to bring the forecast down before the end of the year. (Section 6, Table 1, Table 2 and Appendices 1 & 3).

2.            Note the net DSG forecast of £2.1m overspend. (Section 6 and Appendix 1).

3.            Note the net Housing Revenue Account (HRA) forecast is £4.279m lower than the budgeted surplus. (Section 6 and Appendices 1 and 2).

4.            Note the forecast GF and HRA Capital expenditure of £428.059m in 2023/24 (including enabling budgets) which equates to 68% of the revised capital budget (Section 8 and Appendix 4).

5.            To note the debt write-offs approved in Quarter 1 2023/24 (Appendix 7a).

6.            To approve the revenue budget virements and receipt of grants as set out in Appendix 6.

7.            Approve the proposed budget adjustments and virements to the capital programme as set out in Table 3 and Appendices 5 and 6.

Reason for Decision

A strong financial management framework, including oversight by Members and senior management, is an essential part of delivering the council’s priorities and statutory duties. This is made more critically important than ever because of the uncertainties surrounding the wider economic outlook.

Alternative Options Considered

The report of the management of the Council’s financial resources is a key part of the role of the Director of Finance (Section 151 Officer) in helping members to exercise their role and no other options have therefore been considered.