Agenda item

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

This report will provide an update on the Quarter 1 budget monitoring and Council's financial position. It will seek approval for any changes to the Council's revenue or capital budgets required to respond to the changing financial scenario and the delivery of the Medium Term Financial Strategy.

The Cabinet Member for Finance and Local Investment introduced the report which provided an update on the Quarter 1 budget monitoring and Council's financial position. It will seek approval for any changes to the Council's revenue or capital budgets required to respond to the changing financial scenario and the delivery of the Medium-Term Financial Strategy.

The Cabinet Member outlined that, in the last report on the 2021/22 financial outturn, it had been highlighted that there would be budgetary pressures on the Council during the coming financial year, predominately from external factors such as the economic landscape and continuing demand for services. The impact of this on the Council’s financial plans was demonstrated in the full year estimated spend levels reported at quarter 1. It was commented that there were also growing levels of inflation and wider economic pressures and the Council would need to maximise the delivery of a challenging savings programme, whilst focusing on mitigating actions that will bring down the current spend estimates. It was noted that Directors had been tasked with revisiting all current plans for options to contribute efficiencies and assessing how they can gain more traction on the delivery of savings programmes. It was considered unlikely that economic stability at a national level would be achieved in the short or even medium term and it was noted that the Council would need to focus on actions that were within its control to stabilise the budget position as far as possible this year.

In response to questions from Cllr Cawley-Harrison, the following information was noted:

-       In relation to the delivery of savings, it was explained that the amber rated items were live and the red rated items  listed were currently indicating that they were not deliverable.

-       It was noted that all directorates within the Council were considering whether there was any further capacity for savings.

-       In relation to the viability of the capital and housebuilding programmes in the current economic situation, it was noted that the  scheme business models needed  to take account of these changes and that work for this was ongoing.

RESOLVED

1.    To note the forecast total revenue outturn for the General Fund of £15.7m comprising £5.6m base budget and £10.1m (51%) savings delivery challenges. Note that Directors are developing actions to bring the forecast down before the end of the year. (Section 6, Table 1 and Appendices 1 & 3).

2.    To note the net DSG forecast of £3.8m overspend. (Section 6 and Appendix 1).

3.    To note the net Housing Revenue Account (HRA) forecast a breakeven at this time in the year (Section 6 and Appendices 1 and 2).

4.    To note the forecast GF & HRA Capital expenditure of £337.6m in 2022/23 (excluding enabling budgets) which equates to 72% of the revised capital budget (Section 8 and Appendix 4).

5.    To note the debt write-offs approved in Quarter 1 2022/23 (Appendix 7).

6.    To approve the extension of the current loan to the Credit Union as set out in section 6.2.10 – 6.2.13.

7.    To approve the drawdowns from the Transformation reserve as set out in sections 6.2.14 – 6.2.16.

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

9.    To approve the proposed budget adjustments and virements to the capital programme as set out in Table 2 and Appendix 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 as a result of the on-going financial implications placed on the Council by the Covid-19 crisis and 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.