Decision details

The Chief Officer (Financial Services) submitted a report providing an update on the financial health of the Authority in respect of both the General Fund revenue budget and the Housing Revenue Account, as at Quarter 1 of the 2022/23 financial year.

In presenting the report, the Executive Member highlighted the key points within it. The Board also received details of the final pay offer from the National Employers which had recently been announced, and it was noted that work was being undertaken to identify the potential financial impact of this upon the Council. An undertaking was provided that the Board would be kept updated on such matters and that the intention was to submit a report on this, together with the impact of other inflationary pressures, to the September 2022 Board. 

Responding to a specific enquiry, it was reiterated that an update report would be brought to Executive Board 6 months after the implementation of the amendments made to aspects of the Council’s non-residential Adult Social Care charging policy.

A Member requested that as part of the monthly financial health update report to Executive Board, further detail was provided within those reports to the current position regarding the ‘Business As Usual’ savings proposals.

Responding to a Member’s comments, the Board received an update on the work being undertaken to manage the identified budget pressures referenced in the report within the Children and Families directorate, with specific reference to the ‘Little Owls’ nurseries and the provision of semi-independent living placements for 16 – 17 year olds.

In conclusion, the Executive Member for Resources highlighted the cross-directorate approach that continued to be taken when looking to manage and overcome the significant financial challenges that continued to be faced.

RESOLVED –

(a)  That it be noted that at Quarter 1 the Authority is forecasting an overspend of £1.8m for 2022/23, which is comprised of directorate pressures of £2.3m, netted down by a strategic saving of £0.5m;

(b)  That it be noted that directorates will be required to present action plans to mitigate the £2.3m pressures, in line with the Revenue Principles agreed by Executive Board in 2019, which are scheduled to be received at the September 2022 Executive Board;

(c)  That it be noted that the position as detailed within the submitted report does not reflect the potential effects of the 2022/23 pay award negotiations, other inflationary rises or the wider impact of rising cost of living pressures on the Council’s financial position, above that which has already been included within the 2022/23 Budget; with it being noted that any pressures arising from emerging issues will be reported to a future Executive Board. Furthermore, it be noted that proposals will need to be identified by directorates in order to absorb such pressures, which will be included in the action plans as referenced in resolution (b) above.