Agenda item

To consider the report of the Chief Officer, Financial Services presenting the Council’s projected 2023/24 financial position in respect of both the General Fund revenue budget and the Housing Revenue Account following the first quarter of the financial year. Also, the report sets out the updated Capital Programme for 2023-2028, and seeks approval regarding injections into the Capital Programme.

The Chief Officer Financial Services submitted a report presenting the Council’s projected 2023/24 financial position in respect of both the General Fund revenue budget and the Housing Revenue Account following the first quarter of the financial year. Also, the report set out the updated Capital Programme for 2023-2028, as at Quarter 1 and which sought related approvals regarding injections into the Capital Programme.

The Executive Member highlighted the extremely challenging circumstances that continued to be faced and drew the Board’s attention to the forecasted overspend of £28.5m on the Authority’s General Fund as at Quarter 1 of the financial year. It was noted that whilst the Council would continue to take actions with the aim of achieving a balanced position by the end of the year, if this wasn’t achieved then the use of the Council’s reserves would be considered. The Executive Member also highlighted the currently projected position regarding the Capital Programme.

Members discussed the challenges that continued to be faced within the Children and Families directorate. Responding to a Member’s comments, the Board received an update on the actions being taken to mitigate the pressures that continued to be felt in Children and Families. It was acknowledged that such pressures were being experienced across the sector, with increasing demand for services continuing to be a major contributor. Whilst action would continue to mitigate the pressures in Leeds, it was highlighted that continued representations to Government were needed.

Further to the actions being taken in Children and Families, it was acknowledged that a cross-directorate approach needed to continue, with it being noted that the intention was to submit further details on such matters to the Board in September and October.

Responding to an enquiry regarding the non-demand led costs in Children and Families, the Board received an update on the actions being taken to mitigate pressures in this area also.

In conclusion, the arrangements in place for the Board to regularly monitor the Council’s financial position was highlighted alongside the established Scrutiny arrangements, with an offer to Cllr Lamb that further briefings can be provided to him outside of Board meetings, should this be required. 

RESOLVED –

(a)  That with regard to Financial Health Monitoring 2023/24 – Quarter 1, as detailed at Appendix A to the submitted report:-

(i)  That it be noted that at Quarter 1 the Authority’s General Fund revenue budget is forecasting an overspend of £28.5m for 2023/24, which is comprised of directorate overspends of £27.4m and an overspend in Strategic of £1.1m;

(ii)  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 in line with the Revenue Principles, as agreed by Executive Board in 2019;

(iii)  That the Council’s intention to continue the freeze on recruitment, agency and overtime spend and the freeze on non-essential spend, which were introduced in 2022/23, be noted;

(iv)  That it be noted that known inflationary increases and known impacts of the rising cost of living, including the employer’s 2023/24 NJC pay offer of £1,925 and the JNC pay offer of 3.5%, have been incorporated into the financial position, as detailed within the submitted report; with it being noted that these pressures will continue to be reviewed during the year and reported to future Executive Board meetings as more information becomes available. That it also be noted that proposals would need to be identified in order to absorb any additional pressures;

(v)  That due to reducing energy prices it be noted that there may be a saving on energy budgets; and should this be the case, the Board’s in principle approval be given to any underspend on energy being transferred to the Strategic Contingency Reserve.

(b)  That with regard to the Capital Programme 2023/24 to 2027/28 – Quarter 1, as detailed at Appendix B to the submitted report:-

(i)  That the following injections into the Capital Programme be approved, as detailed at Appendix B1(iii) to the submitted report:

·  £82,105.0k of HRA resources for the roll forward of the Housing Leeds Refurbishment Programme into 2027/28; and

·  £1,185.3k of HRA Resources for the Council House Growth Programme to replace funding utilised during 22/23 closure of accounts.

(ii)  That the resolution as set out in (b)(i) above to inject funding of £83,290.3k will be implemented by the Chief Officer (Financial Services);

(iii)  That the latest position on the General Fund and HRA Capital Programme as at Quarter 1 2023/24, as detailed within the submitted report, be noted.