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 of 30 September 2023 (period 6).

The Council’s General Fund revenue budget for 2023/24 was £199.002m and the forecast outturn position at the end of September projected a net overspend of £12.652m.  The Cabinet Member explained that whilst there had been a sizeable improvement between periods 4 and 5 following the Star Chamber process, the position between periods 5 and 6 had worsened by £1.614m.

The Cabinet Member referred to several of the issues that were impacting on the in-year position, such as continuing demand pressures and increasing social care costs, as well as the impact that the projected overspend would have on reserves and the Council’s ability to set a balanced budget for 2024/25.  He pointed out that whilst areas such as Barking and Dagenham, with its high levels of deprivation, had been experiencing the effects of the Government’s austerity measures for several years, those effects were now being felt nationwide, with a projected £3billion funding gap over the next two years across the local government sector.  The Cabinet Member had consistently called on the Government to put an end to austerity and arising from the discussions, he took on board the suggestion that the Council should coordinate a campaign, in partnership with its North East London neighbouring boroughs, to increase the pressure on the Government via lobbying and Parliamentary Questions raised by the respective local MPs. 

The Housing Revenue Account (HRA) was showing a projected overspend of £7.080m for 2023/24, which was slightly higher than the position at period 5 (£6.899m).  The Cabinet Member confirmed that, as with the General Fund, that level of overspend was not sustainable and work would continue to reduce overspends and find mitigating measures to improve the situation by the year end.

Cabinet resolved to:

(i)  Note the projected £12.652m revenue overspend forecast at Period 6 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 £7.080m revenue overspend forecast for the Housing Revenue Account, as set out in section 4 and Appendix A of the report; and

(iii)  Note the projected returns for the Investment and Acquisition Strategy as set out in section 5 and Appendix A of the report.