Issue - meetings

The Board received a report from the Operational Director – Finance, which reported the Council’s overall revenue net spending position for the 2023/24 financial year.

A summary of spending against the Council’s revenue and capital net spending position for 2023/24 was presented in Appendix 1 and Appendix 2 and these provided detailed figures for each individual Department.  In overall terms net spending as at 31 March 2024 was £5.633m over budget. This was an improvement from the forecast outturn position of £7.144m reported at the end of December 2023, which showed that the actions being taken by Directorates were having a positive effect. Whilst an improved position, it was still a detrimental impact upon the Council’s finances and further reduced the Council’s limited reserves.

The report also detailed a review of the Council General Reserve as at 31 March 2024. The current balance of reserve totalled £5.149m which was considered to be a minimum level which the Council should hold.

In addition, it was noted that Capital Spending at 31 March 2024 totalled £43.939m, which was 71.4% of the planned spending £61.528m (which assumed a 20% slippage between years). Appendix 2 presented details of spending against all capital schemes.  Appendix 3 presented the Capital Programme as at 31 March 2024.

It was noted that the 2024/25 budget had been increased to reflect the increased spending against all the high-pressure areas. It did not provide a budget for the excess cost of agency staff (the assumption being that departments provided for this by reducing spending elsewhere) and the budget also included Transformation Programme savings target of £4m.

A report on the 2024/25 budget monitoring position as at 31 May 2024 along with an initial outturn forecast, would be presented at the earliest opportunity to allow for any urgent corrective action to be taken.

RESOLVED:  That

1)    the Council’s 2023/24 outturn position as presented in the report be noted;

2)    Directorates take all possible steps to manage spending in line with budget during 2024/25; and

3)    Priority is given to the acceleration of the Council’s Transformation Programme, to ensure it is sufficiently developed to deliver the savings required to meet the medium-term financial gap and help the Council replenish its reserves.