Issue - meetings

To consider the report of the Chief Officer, Financial Services on financial performance against the 2024/25 revenue budget following the first quarter of the financial year. The report also provides an update on the Quarter 1 position in respect of the Housing Revenue Account, the Schools Budget, the Council Tax and Business Rates Collection Fund and Treasury Prudential Indicators.

The Chief Officer Financial Services submitted a report presenting the Council’s financial position in respect of the 2024/25 revenue budget following the first quarter of the financial year. The report also provided an update on the Quarter 1 position in respect of the Housing Revenue Account, the Schools Budget, the Council Tax and Business Rates Collection Fund and Treasury Prudential Indicators.

In presenting the report the Executive Member provided an overview of the key points in which it was noted that as at Quarter 1, the Council was forecasting a General Fund overspend of £19.936m. The key areas of overspend were noted together with the reasons for those. The Executive Member also highlighted the range of mitigating measures being taken to address the overspend.

In response to a Member’s concerns about the projected overspend being reported at Quarter 1, the Board received detailed information on the complex challenges being faced together with the range of comprehensive actions being taken to address those challenges and to manage the financial pressures faced, with specific reference made to the work that continued to be undertaken in respect of the services within Children and Families directorate.

Regarding a specific enquiry on the projected overspend within the Adults and Health directorate, the Board received further detail on the key causes of that projected overspend. It was noted that higher than anticipated demand in relation to working age adults was a key factor that remained ongoing, and it was noted that this was not a unique trend to Leeds. Details of the range of work undertaken as part of the budget preparation and also in response to the current position were highlighted.

Also, noting that the report reflected the budgeted assumption of a 3.5% pay increase, an enquiry was raised about the potential impact on the budget should the pay award be higher. In response, it was noted that the JNC pay award had been agreed at 2.5%, whilst the NJC pay award was still being negotiated.  In response to a further enquiry, it was undertaken that the Member in question would be provided with details of the potential impact upon the budget, should the NJC pay award be at a level of 5.5%.

Also in response to a Member’s enquiry, the Board was provided with further details on the range of actions that would continue to be taken to address the currently projected overspend in-year and look towards budget setting processes for future years. It was noted that this issue continued to dominate discussions, and whilst it was a challenging situation for all employees, it was highlighted that there was a commitment for the Council to do everything that it could to operate within its budget. It was also noted that such matters would continue to be reported to Executive Board, as appropriate.

Members also discussed the national position in relation to Local Government funding arrangements moving forward, given the recent change in national Government.

RESOLVED –

(a)  That as presented within the submitted report,  ...  view the full minutes text for item 27