The Chief Officer, Financial Services submitted a report which presented an update on the financial performance of the Authority against the 2023/24 Revenue and Capital budgets at the Outturn of the financial year. The report also recommended actions in relation to several areas including the flexible use of Capital Receipts, the creation of earmarked reserves and injections into the Capital Programme.
In presenting the report the Executive Member provided an overview of the key points in which a balanced position for 2023/24 was being reported through the use of the £17.7m refund from the West Yorkshire Combined Authority and also through use of part of the Merrion House reserve. It was also highlighted that directorates had delivered 77% of savings required, with all directorates being thanked for their contribution towards this.
A Member raised enquiries regarding the reasons for the use of £10.25m Adults and Health reserves in order for the directorate to achieve a balanced budget in 2023/24 and the impact of that upon reserve levels. In response, the Board received further information with it being noted that this was due to significant increase in demand for specific services, which had now stabilised in some areas. Whilst it was acknowledged that this was a challenging position, further detail was provided on the actions that continued to be taken by the directorate in this area.
In terms of the lessons which had been learned from the experience in Adults and Health directorate and whether this could be shared with Children and Families directorate, the Board received information regarding the cross-directorate work which was being undertaken. Further detail was provided on the approach being taken in this area across the Council generally and within Children and Families directorate specifically.
Responding to an enquiry, the Board received an update on the impact regarding the removal of the Maximum Assessed Charge (MAC) cap in relation to non-residential Adult Social Care, with Members noting the actions which were taken in the preparation and delivery of the policy in order to achieve a smooth transition.
In response to an enquiry about the delivery of the strategy in place to manage and deliver the Children and Families directorate budget moving forward, assurance was provided that robust and appropriate plans were in place, together with the cross-Council approach to address the ongoing challenges. It was noted that this was however within the context of the significant issues being experienced nationally including major challenges regarding demand and demography.
RESOLVED –
(a) That it be noted that at Outturn, the Authority’s General Fund revenue budget is reporting a balanced position after the application of reserves and one off measures;
(b) That it be noted that during the year where an overspend was projected, directorates, including the Housing Revenue Account, were required to present action plans to mitigate their reported pressures, in line with the amended Revenue Principles agreed by Executive Board in February 2024, with it also being noted that savings actions identified are included within the submitted report;
(c) That it be noted that known inflationary increases, including demand and demographic pressures in Social Care, known impacts of the rising cost of living, and the agreed 2023/24 pay award, have been incorporated into this reported financial position;
(d) That it be noted that that at Outturn the Authority’s Housing Revenue Account is reporting a balanced position after a contribution of £0.9m to reserves;
(e) That the updated planned use of flexible use of Capital Receipts, be approved as follows, following Full Council’s approval of the Strategy for the flexible use of Capital Receipts at the February 2023 Budget, as set out at paragraph 3.1 in Appendix 1 of the submitted report:
· £1.52m Voluntary Leaver Scheme costs and flexible retirements;
· £0.35m Strategy & Resources’ staff supporting transformational projects/ work;
· £0.35m Communities’ staff supporting transformational projects/ work in climate change and Community Hubs;
(f) That in accordance with the Council’s Budget and Policy Framework, the creation of earmarked reserves, as detailed at Appendix 5 to the submitted report, be approved, and that their release be delegated to the Chief Officer, Financial Services;
(g) That in accordance with the Council’s Budget and Policy Framework, approval be given for the following injections into the Capital Programme, as detailed at Appendix 6A(iii) to the submitted report:
· £8,029.4k of 24/25 High Needs Provision Capital Allocation (HNPCA) Grant;
· £7,758.6k of additional funding injections to HRA Schemes;
· £1,313.5k of external contributions for works on Highways schemes;
· £1,000.0k of additional Highways Grant for the TCF City Centre Cycle Network scheme;
· £110.5k of additional departmental borrowing for the Waste Depot scheme; and
· £2,416.1k of other external contributions;
(h) That the additional Capital Receipts Incentive Scheme (CRIS) allocations to Wards and Community Committees for the period October 2023 to March 2024 of £0.2m, be noted;
(i) That it be noted that the Chief Officer, Financial Services is responsible for the implementation of such matters following the conclusion of the Call In period.