Issue - meetings

The Cabinet Member for Finance, Growth and Core Services introduced the Council’s revenue budget monitoring report for the 2023/24 financial year as at 31 July 2023 (period 4) and the quarter 1 Capital Programme update.

The Council’s General Fund revenue budget for 2023/24 was £199.002m and the forecast outturn position at the end of July projected a net overspend of £14.579m once a planned drawdown from reserves of £5.818m had been taken into account.  The Cabinet Member referred to the key factors behind last year’s General Fund overspend, the vast majority of which were entirely outside the Council’s control and were continuing to be experienced in the current financial year.  He commented that the significant drawdown from reserves in the last financial year meant that the current level of projected overspend was not sustainable and, in response to that, he, the Chief Executive and the interim Strategic Director, Finance and Investment, had held a series of ‘Star Chamber’ meetings with portfolio holders and Directors over recent weeks to look in detail at ways to bring down expenditure levels.  That exercise had proved productive and a range of steps were being implemented as well as new ways of delivering services, although the Cabinet Member added that several other potential future pressures had also been uncovered during the process. 

The Housing Revenue Account (HRA) was also experiencing a projected overspend of £7.5m and the Cabinet Member referred to the key factors behind that position.

With regard to the Capital Programme for 2023/24, the Cabinet Member was pleased to report that the revised programme was on track to spend against budget once revised proposals, as set out in the report, were taken into account.  Those changes would result in revised budgets of £353.256m for 2023/24, £155.863m for 2024/25 and £95.384m for 2025/26

The Cabinet Member also alluded to issues relating to the handover and letting of properties within the Council’s Investment and Acquisition Strategy (IAS), the position relating to agreed savings proposals and proposed virements from the central budget provision to meet inflation costs within the Children’s Care and Support and other services.

Cabinet resolved to:

(i)  Note the projected £14.579m revenue overspend forecast for the General Fund for the 2023/24 financial year, as set out in sections 2 and 3 and Appendix A of the report;

(ii)  Note the projected £7.5m revenue overspend forecast for the Housing Revenue Account, as set out in section 4 and Appendix A of the report;

(iii)  Approve the changes to the Capital Programme as detailed in paragraph 5.2 of the report, resulting in revised budgets of £353.256m for 2023/24, £155.863m for 2024/25 and £95.384m for 2025/26;

(iv)  Note the forecast outturn for the 2023/24 Capital Programme, as set out in paragraph 5.3 of the report;

(v)  Note the issues set out in paragraphs 5.4 to 5.6 of the report regarding the handover and letting of new properties, particularly concerning private rental schemes, and the steps being taken to remedy the issues; and

(vi)  Approve  ...  view the full minutes text for item 33