Decision details

The Interim Assistant Chief Executive – Finance, Traded and Resources submitted a report providing an update on the Council’s financial performance against the 2024/25 revenue budget, as at month 5 of the financial year. The report also presented the August (Month 5) position in respect of the Housing Revenue Account (HRA), the Schools’ Budget (DSG) and the Council Tax and Business Rates Collection Fund.

In presenting the report the Executive Member provided an overview of the key points in which it was noted that as at month 5 of the financial year, the Council was forecasting a General Fund overspend of £22.0m. The Executive Member also highlighted the range of mitigating measures being taken to address the overspend.

Responding to a Member’s enquiry, the Board noted that the savings proposals which were established for the current financial year were largely being achieved, and that the overspend being experienced was due to the increased demand in both children’s and adults’ social care services. The range of work being undertaken to mitigate the current overspend was highlighted, with the scale of the challenge faced being reiterated.

RESOLVED –

(a)  That it be noted that at August 2024 (Month 5 of the financial year) the Authority’s General Fund revenue budget is reporting an overspend of £22.0m for 2024/25 (3.6% of the approved net revenue budget) after application of reserves and within a challenging national context. That it also be noted that a range of actions are being undertaken to address this position as detailed within the submitted report;

(b)  That it be noted that at August 2024 (Month 5 of the financial year) the Authority’s Housing Revenue Account is reporting a balanced position;

(c)  That it be noted that at August 2024 (Month 5 of the financial year), the DSG budget is projecting an in-year pressure of £15.1m which equates to 2.73% of the total estimated DSG funding;

(d)  That it be noted that known inflationary increases, including demand and demographic pressures in Social Care and known impacts of the rising cost of living have been incorporated into this reported financial position. The position assumes a pay settlement of 3.5%, with the final pay award for 2024/25 yet to be agreed. 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;

(e)  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 as agreed by Executive Board in February 2024 through the annual Revenue Budget report.