Decision details

The Chief Officer (Financial Services) submitted a report presenting an update on the financial health of the Authority in respect of both the General Fund revenue budget and also the Housing Revenue Account, as at Month 5 of the 2022/23 financial year.

In presenting the report, the Executive Member for Resources provided an overview of the key information within it, which included reference to the fact that an overspend of £20.4m was projected for the Authority’s General Fund services, as at month 5 of 2022/23.

In response to an enquiry about the proposals responding to financial pressures on the Little Owls nursery provision, it was noted that further detail on such proposals would be presented to the Board in the coming months.

Members welcomed the approach being taken to present savings proposals to the Board, as detailed within the submitted report, and also welcomed the cross-directorate working that continued to be undertaken in looking to address the financial pressures across the Council.

In conclusion, it was reiterated that the financial pressures being felt by the Council, as outlined in the report, were being experienced throughout the sector, with it being noted that work continued with the Local Government Association and other partner organisations to highlight the sector-wide challenges being faced.

RESOLVED –

(a)  That it be noted that at Month 5 (August) of the financial year, the Authority’s General Fund services are forecasting an overspend of £20.4m, and that the Housing Revenue Account is forecasting an overspend of £0.2m, with it also being noted that the General Fund position reduces to £17.98m when account is taken of additional budget actions plans received to date;

(b)  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 agreed by Executive Board in 2019; with it also being noted that proposals received to date are included within the submitted report at Appendix 4, and that further action plans will be received at the November 2022 meeting of Executive Board;

(c)  That it be noted that known increased inflation and known impacts of the rising cost of living, including the 2022/23 pay offer, have been incorporated into this reported financial position, with it also being noted that these pressures will continue to be assessed, with the latest position being incorporated into future reports to be received by Executive Board.