Decision details

The Chief Officer (Financial Services) submitted a report presenting an update on the financial position of the Authority at the Provisional Outturn, reflecting the first eleven months of the 2023/24 financial year.  Specifically, the report reviewed the current position against the 2023/24 budget and provided an update on the Housing Revenue Account (HRA) and the Council Tax and Business Rates Collection Funds.

In presenting the report the Executive Member provided an overview of the key points which included the current forecasting of a balanced position for the General Fund in 2023/24 which would be achieved through the use of reserves. This included the use of the £17.7m from a refund from the West Yorkshire Combined Authority and also £14.7m from the Merrion House reserve. 

Members received further information on the directorate budget action plans which were in place to mitigate against the pressures detailed within the submitted report. This included the ongoing measures to monitor and manage the pressures arising from key areas of demand for services delivered through the Children and Families directorate.

Responding to a specific enquiry, the Board received further detail on the use of £14.7m from the Merrion House reserve which complements the Strategic Contingency Reserve to manage unforeseen budget pressures and is therefore being used as a contribution towards achieving a balanced position for the General Fund in 2023/24. The Board noted that external auditors were aware of such matters, and that there was no additional impact on the revenue budget as a result of using the Merrion House reserve in this way.

RESOLVED –

(a)  That it be noted that at Provisional Outturn (Month 11 of the financial year) the Authority’s General Fund revenue budget is forecasting a balanced position for 2023/24 after the application of reserves;

(b)  That it be noted that at Provisional Outturn (Month 11 of the financial year) 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.