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 3 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 MTFS.

The Cabinet Member for Finance and Local investment introduced the report which set out the position at Quarter 3 (Period 9) of the 2023/24 financial year including General Fund (GF) Revenue, Capital, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG) budgets. The report focused on significant budget variances including those arising from the forecast non-achievement of approved MTFS savings.

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

• The Director for Placemaking and Housing would provide a written response on the reasons for the significant increase in debt write offs for rents in the HRA showing for quarter 3. This was highlighted as previous quarterly updates had shown lower increases.

• In relation to voids, the trajectory was facing downwards. There were some fluctuations especially as new housing coming in that needed to be let. Overall, the Council was confident that it had dealt with a large backlog and had a close monitoring eye on the underlying new voids coming into the system.

• In relation to Tottenham Hotspur and the paying for the litter and clean-up, it should be noted that this was only an issue with football matches. For the non-football major events there had been payments to cover the cost. There were regular meetings between the Council and Tottenham Hotspur to consider this issue and negotiate a solution. Negotiations were still ongoing and good progress being made and an update could be provided to Cabinet in the coming months.

RESOLVED

1. To note the forecast total revenue outturn variance for the General Fund of £20.8m comprising £18.0m base budget and £2.8m (savings delivery

challenges) and note that Directors are working on actions to bring the

forecast down further before the end of the year. (Section 6, Table 1, Table 2 and Appendices 1 & 3). Note the net DSG forecast of £2.5m overspend. (Section 6 and Appendix 1).

2. To note the net Housing Revenue Account (HRA) forecast is £3.1m lower than the budgeted surplus. (Section 6 and Appendices 1 and 2).

3. To note the forecast GF and HRA Capital expenditure of £287.3m in 2023/24 (including enabling budgets) which equates to 58% of the revised capital budget (Section 8 and Appendix 4).

4. To note the debt write-offs approved in Quarter 3 2023/24 (Appendix 7a).

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

6. Approve the proposed capital virements and receipt of grants as set out in Appendix 6.

7. To note the impact of the historic funding of Private Finance Initiative (PFI) related capital works and the implications for the PFI reserve balances as set out in Sections 8.3 – 8.5 of the report.

8. To delegate to the s151 officer authority to finalise future payments to

academy schools covered by the PFI suspension agreement to cover the period from starting their academy status to the end of the PFI suspension agreement should it be determined that a liability exists (Section 8.5); and

9. To authorise the s151 officer, prior to making such payments, to enter into satisfactory agreement(s) with the Academy Trust(s) and/or the Academy schools for the purpose of regulating the use of such monies; and to note that some or all such sums paid to schools may be in excess of £500k.

Reasons 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.