Agenda item

*RESOLVED –

1.   That the forecast position of the General Fund Revenue Account at the close of period 5 for the financial year 2023/24 and the continuing uncertainty associated with the outturn forecast resulting from the significant in year inflationary and demand led cost pressures be noted.

2.   That the strategy for achieving, as a minimum, a balanced budget outturn position for the financial year 2023/24 be supported.

3.   That the General Fund Capital Programme expenditure forecast at the close of period 5 for the financial year  2023/24 be noted.

REASONS FOR DECISIONS

1.   This periodic monitoring report summarises the current assessment of the Council’s forecast outturn for the current financial year and sets out the active management mitigations to be progressed to balance the 2023/24 budget. It also provides a robust basis for medium term financial planning.

2.   This is the second formal monitoring report for the 2023/24 financial year and comes at a time when the Council is experiencing financial pressures due to the current economic situation, cost and pay inflation and the ongoing impact of the Covid-19 pandemic and the cost-of-living crisis.

The Service Director – Finance presented a report to provide Cabinet with an assessment of the Council’s forecast outturn position for the General Fund Revenue Account and Capital Programme for the financial year 2023/24 based on activity to the end of period 5 (31 August 2023).

It was noted that the Council continued to face significant financial challenges. Government austerity since 2010, the ongoing risks and uncertainties over future funding arrangements for the sector, the legacy budgetary impacts of the Covid-19 pandemic and the more recent sustained period of exceptionally high inflation, had all impacted on the Council’s in-year financial position.

The Local Government Employers pay offer of £1,925 per employee, made in February 2023 and now accepted, equated to a circa 5.6% increase to the 2023/24 pay budget for General Fund revenue funded staff. The 2023/24 base budget had only included provision for a 4% pay award. The additional 1.6% presented an in-year pressure of up to £300k.

The period 3 forecast was reported to Cabinet on 19 September 2023 and presented an adverse in-year position of £774k. This was based on activity to the end of June and an analysis of projected trends in income and expenditures.

As at the end of period 5, the adverse in-year position had improved by £440k to £334k. It was however noted that this position excluded the additional £300k that would be needed to meet the in-year pay award for General Fund revenue funded staff.

The table at section 4.19 of the Service Director’s report provided a summary of the key variances across service areas.

The Council was committed to delivering services within the approved budget for 2023/24 and the Corporate Leadership Team (CLT) would continue to work collectively with budget managers to agree and implement clear, robust, and immediate management actions to address the adverse in-year forecast.

*RESOLVED –

1.   That the forecast position of the General Fund Revenue Account at the close of period 5 for the financial year 2023/24 and the continuing uncertainty associated with the outturn forecast resulting from the significant in year inflationary and demand led cost pressures be noted.

2.   That the strategy for achieving, as a minimum, a balanced budget outturn position for the financial year 2023/24 be supported.

3.   That the General Fund Capital Programme expenditure forecast at the close of period 5 for the financial year  2023/24 be noted.

REASONS FOR DECISIONS

1.   This periodic monitoring report summarises the current assessment of the Council’s forecast outturn for the current financial year and sets out the active management mitigations to be progressed to balance the 2023/24 budget. It also provides a robust basis for medium term financial planning.

2.   This is the second formal monitoring report for the 2023/24 financial year and comes at a time when the Council is experiencing financial pressures due to the current economic situation, cost and pay inflation and the ongoing impact of the Covid-19 pandemic and the cost-of-living crisis.