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 as at Quarter One 2023/24. It also advised of the management actions taken and underway to establish a firmer grip upon the Council’s financial position. Endorsement was also sought from Executive of the management actions that were planned in the form of Financial Recovery Plans to control expenditure within the General Fund Revenue Budget approved by Council in February 2023. The report also sought Executive approval in relation to the revisions to the Capital Programme.

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 Programme.

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

·         Forecast outturn on the General Fund Revenue Budget and Capital Programme at Quarter One of 2023/24;

·         Statement of the Council’s borrowing and prudential indicators, and its reserves and provisions; and

·         Actions that the management has taken and plans to address the issues identified.

Financial Procedure Rule 10.5 required Executive’s approval of the proposed revenue budget virements set out in Appendix four. A revised Capital Programme for the period 2023/24 to 2025/26 was also attached at Appendix six for Executive’s consideration and approval.

The Executive Member for Finance and Governance advised Executive that an all-Member briefing on this subject had taken place the evening before.

A non-Executive Member suggested that Councillors not take their Basic and Special Responsibility Allowances so they could contribute to any budget savings. The Member also recommended the Council address any peppercorn rents that existed in the town. It was proposed that any suggested budget savings be directed to the email address circulated to all Members.

It was agreed that in Appendix two of the report several items be withdrawn from the information submitted to be considered further. Those items were: Review provision of charging for junk job services; Review charges for replacement bins; Review schedule of green waste collection and savings associated with the Warden Service.

ORDERED that Executive (in respect of the General Fund Revenue Budget):

1.    Note the forecast 2023/24 net revenue budget outturn as at Quarter One of £137.917m against an approved budget of £126.354m, a forecast overspend of £11.563m (9.2%);

2.    Note that the Council’s usable revenue reserves position is critically low at £14.8m comprising the General Fund Reserve of £12.041m and the Council’s unrestricted usable earmarked reserves of £2.788m at 31 March 2023;

3.    Note that if the current forecast overspend of £11.563m was actually incurred, it would exhaust the Council’s unrestricted usable earmarked reserves and also significantly draw upon the Council’s General Fund Reserve as shown in Table two. Therefore, urgent management action was required to reduce expenditure and the forecast outturn within budget;

4.    Note that if it appeared to the Director of Finance  ...  view the full minutes text for item 11