Agenda item

To consider the report of the Chief Officer, Financial Services presenting the Council’s financial position at the end of the first six months of the financial year. The report provides an update on the latest position on the Housing Revenue Account (HRA), Council Tax and Business Rates Collection Fund, the Capital Programme Quarter 2 update and the Treasury Management Strategy Update. Additionally, the report seeks approval of several injections into the Capital Programme.

The Chief Officer, Financial Services submitted a report which presented the Council’s financial position as at the end of the first six months of the 2023/24 financial year. Specifically, the report reviewed the current position against the 2023/24 Budget and provided an update in respect of the Housing Revenue Account (HRA), Council Tax and Business Rates Collection Fund, the Capital Programme and the Treasury Management Strategy. Additionally, the report sought approval of several injections into the Capital Programme.

In presenting the report the Executive Member provided an overview of the key points which included the current forecasting of an overspend of £30.5m for the General Fund as at month 6 of the financial year. In considering this, specific reference was made to the increased demand that continued to be experienced in services relating to Looked After Children, with it being emphasised that this was a national trend.  Further detail was also provided on the other key aspects of the Financial Health Monitoring section of the report, the Capital Programme and the Treasury Management Strategy.

In considering the report, it was anticipated that further discission would be had on such matters when the Board considered the initial budget proposals in December 2023, and leading up to the budget setting discussion in February 2024.

RESOLVED –

(a)  That in respect of the Financial Health Monitoring 2023/24 – Month 6 (September 2023), as detailed at Appendix A to the submitted report:

(i)  As at Month 6 (September 2023) it be noted that the Authority’s General Fund revenue budget is forecasting an overspend of £30.5m for 2023/24 (5.3% 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 achieve a balanced budget position;

(ii)  As at Month 6 (September 2023) it be noted that the Authority’s Housing Revenue Account is forecasting an  overspend of £1.9m for 2023/24 (0.7% of the approved gross expenditure budget);

(iii)  It be noted that known inflationary increases, including demand and demographic pressures in Social Care and 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. 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 in order to absorb any additional pressures;

(iv)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, as agreed by Executive Board in 2019; 

(v)  The Month 6 positions with regard to the use of Invest to Save, Covid Backlog and Flexible Capital Receipt resources, be noted, together with the additional planned use of £1m of Capital Receipts in 2023/24 to support transformation projects and deliver savings in addition to the budgeted use approved by the Board in September.

(b)  That in respect of the Capital Programme 2023/24 to 2027/28 – Quarter 2, as detailed at Appendix B to the submitted report:

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

·  £15,325.8k of grant funding from West Yorkshire Combined Authority (WYCA) for Active Travel Tranche 3 and 4 Schemes;

·  £3,998.0k of DFE Post 16 Capacity Fund Grant for Pudsey Grammar School;

·  £1,474.8k of Disabled Facilities Grant re Additional Allocations for 23-24 and 24-25; and

·  £1,728.3k of other secured external funding contributions.

(ii)  That it be noted that the resolutions above to inject funding of £22,526.9k 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 2 2023/24, be noted;

(iv)  That the additional Capital Receipts Incentive Scheme (CRIS) allocations to Wards and Community Committees for the period April 2023 to September 2023 of £144.1k, be noted;

(v)  That the spending priority for investment of the Community Infrastructure Levy (CIL) Strategic Fund, as matched funding contributions for Strategic Highways and Transportation Schemes, be agreed.

(c)  That in respect of the Treasury Management Strategy Update 2023/24, as detailed at Appendix C to the submitted report:

(i)  The update on the Treasury Management borrowing and investment strategy 2023/24, be noted.