Agenda item

The Director of Finance and Transformation outlined the 2024/2025 Quarter Two Revenue and Capital Monitoring report and invited questions from the Board.

The Council was projecting a budget overspend of £1.4 million as at Quarter two, but the intention was to reduce this. In terms of Capital budgets, the forecast was lower than expected and work was being undertaken to address this. The Chair commented the Council tended to spend more in the winter months, however it was clarified that such seasonal spending had been factored into the forecasts.

Members attention was drawn to Appendix nine on page 127 of the agenda pack, entitled “details of capital slippage.” A query was raised regarding the Middlesbrough Development Company as it was believed this was being wound down. The Director of Finance and Transformation commented the entry was likely a timing issue, but that clarification should be sought from the Director of Regeneration. 

A Member queried how Directors would be held accountable should savings targets not be achieved. The Executive Member clarified there was a budget clinic process in place which she chaired. It was also clarified that Members did not hold officers to account, and vice versa. The role of holding officers to account would rest with the Chief Executive. Members and officers were working together to overcome the budget challenges and while budget clinic meetings were challenging, they should not be seen as punishments.

It was clarified that none of the EFS had been utilised at that point, and likened the situation to having an authorised overdraft in that it was available, but it was not a requirement to use it. It was also stated that any use of the EFS would be used to balance the budget.

In terms of Home to School Transport, it was confirmed that some additional money had been put into the service, but the service had not needed as much as originally thought.

A Member requested to know the Membership of both the Corporate Capital Board and Strategic Capital Board, which were highlighted on page 84 of the agenda pack. It was clarified this information was contained in the Capital Programme Governance Improvement report approved by Executive on 13 November 2024. However, it was agreed this information would also be circulated to the Board.

ORDERED that

1.    Clarification be sought about the entry of the Middlesbrough Development Company on the Capital Programme Slippage report.  

2.    The membership of the Corporate Capital Board and Strategic Capital Board be circulated to the Board.

3.    The information presented be noted.