Agenda item

To consider the report of the Chief Officer, Financial Services presenting the financial health of the Authority in respect of both the General Fund revenue budget and the Housing Revenue Account, as at Month 7 of the 2022/23 financial year.

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 the Housing Revenue Account, as at Month 7 (October) 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 £15.4m was projected for the Authority’s General Fund services, as at month 7 of 2022/23. Emphasis was placed upon the significant increase in financial pressures that continued to be experienced since the budget was set in February, with it also being noted that plans were in place to balance the budget by the end of the financial year.

Responding to an enquiry, the Board received further information on the range of work being undertaken to reduce the projected overspend in the current financial year, and to mitigate the financial challenges which continue to be faced moving forward. Regarding the potential use of strategic contingency reserves to balance the 2022/23 budget, Members received an update on the potential impact of this action upon the Council’s contingency reserve levels.

In response to Members’ enquiries, the Board received an update on the actions being taken in 2022/23 and those proposed moving forward to address the financial pressures arising from the ‘Little Owls’ nursery provision. In providing such information, it was emphasised that the Council would continue to ensure that its duty around sufficiency of places was fulfilled.

Responding to a comment about Members being kept updated on service proposals which specifically affected their Ward, it was noted that the initial budget proposals and also a number of directorate ‘Service Review’ savings proposals were being presented to this meeting with a recommendation that consultation on such matters commence.

RESOLVED –

(a)  That it be noted that at Month 7 of the financial year (October), the Authority’s General Fund services are forecasting an overspend of £15.4m and that the Housing Revenue Account is forecasting a balanced position, with it also being noted that the General Fund position reduces to £14.6m when account is taken of additional budget action 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 in the submitted report, as at Appendix 4, and that further action plans will be received at the February 2023 meeting of Executive Board;

(c)  That it be noted that known increased inflation and known impacts of the rising cost of living, including the agreed 2022/23 pay award, 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.