Issue - meetings

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

The report set out the Council’s forecast 2023/24 financial position at Quarter Two and highlighted the areas of particular financial challenge. The report also set out the management actions taken to control expenditure within the General Fund budget approved by Council in February 2023.

The report also sought Executive endorsement of the management actions that were planned in the form of Financial Recovery Plans in order to control expenditure within the approved budget and to develop more financially sustainable solutions for future years. Finally, the report sought approval of the Executive in relation to revenue budget virements and revisions to the Capital programme.

The Council’s Scheme of Delegation gave the 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 within approved Council resources.

The report would enable the Executive to discharge its financial management responsibilities which included setting out the General Fund Revenue Budget forecast outturn at Quarter Two as well as the statement of the Council’s projected reserves and provisions at Quarter Two.

ORDERED that Executive:

In respect of the General Fund Revenue Budget:

1.    Note the forecast 2023/24 net revenue budget outturn as at Quarter Two of £134.910m against an approved budget of £126.354m, a forecast overspend of £8.556m (6.8%). This represented an improvement of £3.007m from that forecast at Quarter One.

2.    Note that the forecast overspend of £8.556m related primarily to a combination of forecast demand and inflationary pressures as outlined in the table at paragraph 79 of the report.

3.    Note and endorse the management actions taken in consultation with Executive Portfolio Holders over the year to date to control expenditure within the approved budget and to develop more financially sustainable solutions for future years as was set out in paragraphs 7 to 14 of the report.

4.    Note that further work was continuing with a view to fully mitigate the forecast overspend and that further reports would be submitted to Executive for noting and approval of management actions when appropriate.

5.    Approve the proposed revenue budget virements over £250,000 as detailed in Appendix 4 of the report.

In respect of the Council’s Reserves and Provisions:

1.    Note that the interim s151 Officer had undertaken a review of the balance sheet which had resulted in the release of £0.758m from the Revenue Grants Received Unapplied account that would be transferred to the Change Fund for which the balance would be re-stated as at 31 March 2023.

2.    Note the interim s151 Officer had determined that the uncommitted 2023/24 Change Fund Reserve of £1.488m would be available to fund expenditure on transformation and efficiency as part of an agreed financial recovery plan.

3.    Note that as a result of the balance sheet review, the interim s151 Officer was in discussion with the External Auditor  ...  view the full minutes text for item 32