Agenda item

To consider the report of the Chief Officer, Financial Services presenting the Council’s projected financial health position as at month 5 of the 2023/24 financial year.

The Chief Officer Financial Services submitted a report presenting the Council’s projected financial health position as at month 5 of the 2023/24 financial year in respect of both the General Fund revenue budget and the Housing Revenue Account

The Board was requested to note the following correction to the submitted report:

Regarding the reference on page 1396 of the agenda pack (paragraph 3.11.1 (‘Reserves’) of Appendix A) which read, ‘…£0.8m Leeds Older People’s Forum for delivery of the Age Friendly programme which is funded by Health’. This was to be amended to, ‘…£0.8m Leeds Older People’s Forum for delivery of the Enhance Programme commissioned by Leeds Community Healthcare (LCH) and delivered by the Third Sector’. 

In presenting the report, the Executive Member provided an overview of the key points, which included the current forecasting of an overspend of £29.6m for the General Fund as at month 5 of the financial year. The Board was also provided with an update on the work that continued in respect of managing in-year pressures.

Responding to a specific enquiry regarding the refund of transport levy reserves, as one-off funding from WYCA (West Yorkshire combined Authority) to each of the 5 West Yorkshire Local Authorities.  In Leeds’ case this was a sum of £17.7m. It was noted that this sum would be returned to the Council’s General Fund. It was also noted that this sum would be factored into future Financial Health Monitoring reports submitted to the Board moving forward.

RESOLVED –

(a)  That, subject to noting the correction as detailed above, the contents of the submitted report be noted, and that it also be noted that at Month 5 of the 2023/24 financial year the Authority’s General Fund revenue budget is forecasting an overspend of £29.6m for 2023/24 (5.2% of the approved net revenue budget) within a challenging national context, and with it also being noted that a range of actions are being undertaken to achieve a balanced budget position;

(b)  That it be noted that at Month 5 of the 2023/24 financial year, the Authority’s Housing Revenue Account is forecasting an overspend of £3.0m for 2023/24 (1.09% of the approved gross expenditure budget);

(c)  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, including the employer’s 2023/24 NJC pay offer of £1,925 and the JNC pay settlement of 3.5%, have been incorporated into this reported financial position, with it also being noted that these pressures will continue to be reviewed during the year and reported to future Executive Board meetings as more information becomes available. That it also be noted 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 2019;

(e)  That following WYCA Members’ approval of a refund of transport levy reserves to the five West Yorkshire Local Authorities on 12th October 2023, it be noted that this one-off injection will be used in Leeds to add to the Strategic Contingency Reserve.