Agenda item

To consider the report of the Interim Assistant Chief Executive – Finance, Traded and Resources providing an update on the Council’s financial performance against the 2024/25 revenue budget. The report also provides updates on the October (Month 7) position in respect of the Housing Revenue Account (HRA), the Schools Budget (DSG) and the Council Tax and Business Rates Collection Fund.

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 7 of the financial year. The report also presented the October 2024 (Month 7) 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 7 of the financial year, the Council was forecasting a General Fund overspend of £20.7m and highlighted that the DSG was forecasting an overspend of £15.1m. The Executive Member also emphasised the range of mitigating measures being taken to address such pressures.

Regarding the demand led and financial pressures being faced within Adult Social Care, a Member enquired about the extent to which a collaborative approach was being taken between the Council and NHS partners with a view to benefitting both parties when considering the challenges being faced. In response, an update was provided highlighting the range of partnership work that was ongoing in this area. 

Responding to a Member’s concern regarding the current and future Children and Families budget, it was highlighted that whilst all was being done to deliver within budget, the service was operating within a highly challenging national context, with specific reference being made to the costs arising from children’s external residential placements.  The pressures being faced as a result of the demand experienced and demography of the city was highlighted, with it being emphasised that the protection and safety of children and families remained the priority.

Further to this, the Board received an update on the actions being taken and the progress which was being made in Leeds, including the reduction in the number of Looked After Children and also the provision of new children’s homes.

From a wider perspective, further context was provided on the cross-directorate and cross-Executive portfolio discussions and actions that were taking place in response to the budgetary pressures being faced.

In conclusion, the Executive Member extended her thanks to the officers in Children and Families directorate for the progress being made, as described during the discussion.

RESOLVED –

(a)  That it be noted that at October 2024 (Month 7 of the financial year) the Authority’s General Fund revenue budget is reporting an overspend of £20.7m for 2024/25 (3.3%) of the approved net revenue budget after the application of reserves set up for this purpose; with it being noted that the overspend should be considered within the challenging national context, and that a range of actions are being undertaken to address this position;

(b)  That it be noted that at October 2024 (Month 7 of the financial year) the Authority’s Housing Revenue Account is reporting a balanced position;

(c)  That it be noted that at October 2024 (Month 7 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. That it also be noted that the 2024/25 pay offer has now been agreed for both JNC and NJC staff, and the JNC element was included in September’s payroll and is reflected in directorate dashboards. The Council expects to pay the NJC element in December’s payroll and these additional costs and associated mitigations will be shown in dashboards once payment is processed. That it be further noted that inflationary pressures will continue to be reviewed during the year and reported to future Executive Board meetings as more information becomes available, and that a number of actions are being taken to reduce the budgetary pressures being forecast including a review of Agency and Overtime;

(e)  That it be noted that where an overspend is projected, directorates, including the Housing Revenue Account and the Dedicated Schools Grant, 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 2024 through the annual Revenue Budget report.