Issue - meetings

2022/23 Budget Monitoring at Quarter 2 & MTFP Update

This report includes 2022/23 budget monitoring information for the general fund for November 2022 and an updated position for the medium-term financial plan (MTFP).

It also includes budget monitoring information at quarter two for the capital programme and housing revenue account (HRA).

The general fund outturn is projected to further improve from the previously reported position with a £9m surplus now estimated for the year.

The MTFP has now been updated for an estimate of the implications of the governments Autumn Statement. Consequentially Cabinet is asked to identify £6.2m of currently identified savings for 2023/24 which potentially will now be able to be deferred until 2024/25.

Additional documents:

Decision:

RESOLVED that Cabinet: -

1. Recognised the continued improvement to the 2022/23 in-year position with a £9m net surplus now projected;

2. Agreed the capital virement for the Housing Revenue Account as set out in paragraph 121;

3. Acknowledged the update of the Medium-Term Financial Plan including estimates of the implications of the governments Autumn Statement;

4. Acknowledged that, based on the current financial planning assumptions and the approach to risk, that not all of the previously identified savings’ proposals may now need to be implemented in 2023/24;

5. Requested Cabinet to identify up to £6.2m of currently identified 2023/24 savings that can now potentially be deferred to 2024/25;

6. Noted the improvement in timescales and delivery of the Pay and Reward workstream by moving forward the implementation from the previously assumed date of April 2024 to January 2024; and

7. Increased the annual investment in unearmarked reserves from £700k to £1.9m in 2023/24.

It is RECOMMENDED that Council: -

Agree the acceptance of general fund revenue grant for adult social care as set out in paragraph 64.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reason

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position.

To comply with the council’s financial regulations regarding budget virements.

In addition, and further to a recommendation agreed by Cabinet on the 7 September 2022, an update on the Councils financial strategy is being presented as a standing item on the Cabinet agenda until such time as a balanced budget for 2023/24 has been delivered.

With the material improvement and increased confidence in the Council’s financial position the focus will now be on delivering a further member engagement session via the additional Budget Café session added in January.

Minutes:

The Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report includes 2022/23 budget monitoring information for the general fund for November 2022 and an updated position for the medium-term financial plan (MTFP) and that it also includes budget monitoring information at quarter two for the capital programme and housing revenue account (HRA).

Cabinet was informed that the general fund outturn is projected to further improve from the previously reported position with a £9m surplus now estimated for the year.

Cabinet was advised that the MTFP has now been updated for an estimate of the implications of the governments Autumn Statement. Consequentially Cabinet is asked to identify £6.2m of currently identified savings for 2023/24 which potentially will now be able to be deferred until 2024/25.

Cabinet was advised that the Government Dispensation on the DSG had been extended for a further three years.

The Leader thanked Cabinet Members and Overview and Scrutiny for their work on the budget.

A non-Cabinet Councillor commented that they did not accept that the budget was being prudent but recognised that the current financial position was difficult.

Cabinet was advised that the Health and Adult Social Care O&S Committee had recognised a problem regarding a lack of staffing for adult social care was improving the budget position but was also leading to unmet care needs.

The Section 151 officer advised for clarification that the expenditure control measures would be in place until the budget for 2023/24 has been set.

RECOMMENDED/RESOLVED that Cabinet: -

1. Recognise the continued improvement to the 2022/23 in-year position with a £9m net surplus now projected;

2. Agree the capital virement for the Housing Revenue Account as set out in paragraph 121;

3. Acknowledges the update of the Medium-Term Financial Plan including estimates of the implications of the governments Autumn Statement;

4. Acknowledge that, based on the current financial planning assumptions and the approach to risk, that not all of the previously identified savings’ proposals may now need to be implemented in 2023/24;

5. Request Cabinet to identify up to £6.2m of currently identified 2023/24 savings that can now potentially be deferred to 2024/25;

6. Cabinet notes the improvement in timescales and delivery of the Pay and Reward workstream by moving forward the implementation from the previously assumed date of April 2024 to January 2024; and

7. Increase the annual investment in unearmarked reserves from £700k to £1.9m in 2023/24.