Agenda item

The Executive Member for Finance and Governance and the Director of Finance submitted a report for the Executive’s consideration. The report advised the Executive of the Council’s financial position as at Quarter One 2022/23.

The Council’s Scheme of Delegation provides the Executive collective responsibility for corporate strategic performance and financial management / monitoring, together with associated action. 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.

The report provided the necessary information to enable the Executive to discharge its financial management responsibilities, setting out:

·         projected revenue and capital budget year-end outturns as at Quarter One 2022/23;

·         position statements in relation to the Council’s borrowing and prudential indicators, and its reserves and provisions; and

·         actions that the Council had taken and plans to address the issues raised.

Standing Orders and Financial Procedures and Regulations required the Executive’s approval of the proposed revenue budget virements over £150,000 (Appendix 1)

A revised Investment Strategy for the period to 2024/25 was attached at Appendix 2 for the Executive’s consideration and approval.

OPTIONS

No other options were considered as part of the report.

ORDERED

1.    That Executive approve the transfer of £5.665m of additional temporary budget to Children’s Care in 2022/23 only to correspond with the current MTFP 3-year plan, funded by £3.702m from centrally held contingency budgets and £1.963m from the Social Care Transformation Reserve.

2.    That Executive notes that following the approval of the above proposed transfer, there is a projected 2022/23 revenue budget year-end outturn as at Quarter One of a £9.012m overspend.

3.    That Executive notes the management action being taken to address the shortfall and recover the position to a balanced budget.

4.    That Executive notes the proposed potential implementation of a Flexible Use of Capital Receipts Strategy for 2022/23 to fund transformation costs, in particular in Children’s Services, which will be submitted for approval by Full Council on 7 September 2022.

5.    That Executive notes that the current projected outturn will have a negative impact on the Council’s current Medium Term Financial Plan and that the ongoing financial challenges will continue into 2023/24 and future years. The position is currently being assessed and will be reported to Members in due course as part of future Medium Term Financial Plan updates and as part of the budget strategy for 2023/24 to Executive and Council. It should be noted that there is currently a great deal of uncertainty in forecasting created by the pay award, inflationary pressures and the impact on demand for services.

6.    That Executive approve the proposed revenue budget virements over £150,000 as detailed in Appendix 1.

7.    That Executive notes the 2022/23 capital budget predicted year-end outturn of £90.614m as at Quarter One against a revised capital budget of £104.675m, and approves the revised Investment Strategy to 2024/25 at Appendix 2.

OPTIONS

No other options were considered as part of the report.

REASON

To enable the effective management of finances, in line with the Council’s Local Code of Corporate Governance, the Scheme of Delegation and agreed corporate financial regulations.