Issue - meetings

The Executive Member for Finance and Governance submitted a report for Executive’s consideration.

The report advised Executive of the Council’s financial position at year-end 2022/23.

The Council’s Scheme of Delegation gave Executive collective responsibility for corporate strategic performance and financial management / monitoring, together with associated actions. Standing Orders and Financial Procedures required Executive’s approval for major virements between revenue budgets, and in-year changes to the Council’s Capital Investment Strategy (Capital Programme).

The report enabled Executive to discharge its financial management responsibilities, by setting out:

·         The final pre-audited revenue and capital budget outturn for the year-end 31 March 2023;

·         The statement of the Council’s borrowing and reserves and provisions; and

·         The actions the Council had taken, and planned to take, to address the issues identified.

A revised Investment Strategy (Capital Programme) for the period 2023/24 to 2025/26 was attached at Appendix 1 considering the 2022/23 outturn for Executive’s consideration and approval.

The approved 2022/23 Revenue budget for the Council was £118,328,934 as set out in the Revenue Budget, Council Tax, Medium Term Financial Plan (MTFP) and Capital Strategy 2022/23 Report approved by Council on 23 February 2022.

The Council continued to operate in a challenging financial and economic environment with inflation, as measured by CPI, at the financial year-end 2022/23 running at 10.1%. Inflation was forecast to remain high throughout 2023/24 and potentially into 2024/25.  The Council’s financial resilience had been depleted by the reduction in earmarked reserves in recent years, as referenced by the former interim s151 Officer, with earmarked usable reserves totalling £4.515m at 31 March 2023.

It was essential that actions were taken through the 2023/24 financial year to rebuild the Council’s financial resilience over the medium term. The General Fund Reserve stood at £12.041m as planned in the MTFP. This was equivalent to 9.5% of the 2023/24 net revenue budget and should only be used in exceptional circumstances as a last resort.

Children’s Social Care expenditure levels remained the biggest area of financial risk to the Council given the demand and price pressures facing the service. As previously reported to Executive, the Children’s Social Care budget was increased during 2022/23 by £5.665m to a total of £45.409m. The final outturn against this budget was £54.832m an overspend of £9.423m (20.8%).  The 2023/24 base budget approved by Council in February 2023 recognised the ongoing financial pressures in the service, setting a budget of £54.649m and the Service had a Finance Improvement Plan requiring the delivery of savings totalling £2.9m in 2023/24 and a further £1.8m in 2024/25. It is essential that this plan is delivered in full to avoid further weakening of the Council’s financial position.

OPTIONS

No other options were put forward as part of the report.

ORDERED

In respect of the General Fund Revenue Budget, Executive:

1.    Note the 2022/23 final pre-audited net revenue outturn of £121.084m against an approved budget of £118.329m, an overspend of £2.755m (2.3%). This is an improvement of £0.656m from the forecast outturn at Quarter Three;

2.    Note that within  ...  view the full minutes text for item 6