Decision details

The Chief Officer Financial Services submitted a report which presented the Council’s financial position as at the end of the first 10 months of the 2023/24 financial year. Specifically, the report reviewed the current position against the 2023/24 Budget and also provided an update regarding the Housing Revenue Account (HRA) and the Council Tax and Business Rates Collection Fund.

In presenting the report the Executive Member provided an overview of the key points which included the current forecasting of a General Fund overspend of £36.3m as at month 10 of the financial year. The Board noted that the Council’s reserves together with the one-off refund of transport levy reserves received from the West Yorkshire Combined Authority would need to be used to help achieve a balanced position for 2023/24. It was also reiterated that directorates continued to be required to present action plans to mitigate against pressures within their respective service areas.

Responding to a specific enquiry, the Board received further detail and assurance on the actions that continued to be taken to monitor and mitigate against the financial pressures arising from the services delivered by the Children and Families directorate, which were via the established directorate action plan and associated governance arrangements. The ongoing key sources of financial pressures, including the rising cost of external residential placements, were also highlighted.

RESOLVED –

(a)  That it be noted that at Month 10 of the financial year (January 2024), the Authority’s General Fund revenue budget is forecasting an overspend of £36.3m for 2023/24 (6.3% of the approved net revenue budget) within a challenging national context, with it also being noted that a range of actions are being undertaken to address this position;

(b)  That it be noted that at Month 10 of the financial year (January 2024), the Authority’s Housing Revenue Account is forecasting a balanced position;

(c)  That it be noted that known inflationary increases, including demand and demographic pressures in Social Care, known impacts of the rising cost of living, including the NJC pay settlement of £1,925 and the JNC pay settlement of 3.5%, have been incorporated into this reported financial position, as submitted. That it also be noted that these pressures will continue to be reviewed during the year and reported to future Executive Board meetings as more information becomes available, and that proposals would need to be identified to absorb any additional pressures;

(d)  That it be noted that where an overspend is projected, directorates, including the Housing Revenue Account, are required to present action plans to mitigate their reported pressures and those of the Council’s wider financial challenge where possible, in line with the Revenue Principles agreed by Executive Board in February 2023 through the annual Revenue Budget report.