Issue - items at meetings - Budget Monitoring 2023-24 at Quarter One

This report provides the quarter one 2023/24 projected financial outturn information for the general fund and housing revenue account (HRA).

The February 2023 approved general fund budget for 2023/24 was balanced on the assumption of a £30m drawdown in reserves and the delivery of £34m in savings, efficiencies, and additional resources including £9m in respect of transformation which were un-itemised.

The projected outturn continues to assume the drawdown of the £30m in reserves. In respect of the £34m of savings it assumes either their delivery or that equivalent alternative savings are delivered. Where these alternatives are of a one–off nature then this will add a pressure to the £44m funding gap for 2024/25 identified as part of the July MTFP Update report.

Services are expected to implement mitigation strategies to address emerging operational pressures identified within the first quarter. This is critical as the council does not have any earmarked reserves identified as available to support any drawdown over the £30m assumed in the original budget.

RESOLVED that Cabinet: -

(a) Noted the budget monitoring position for quarter one 2023/24; and

(b) Request the Chief Operations Officer and the Corporate Director for Resources present in the quarter two Cabinet monitoring report their mitigation proposals to balance service pressures if these remain; and

(c) Approved the implementation of an expenditure freeze and vacancy management process for the remainder of 2023/24 with delegation to the Chief Executive to develop an appropriate policy. This is to be supported by consideration of the redeployment of any staff in posts that it is proposed to remove.

Voting: Unanimous

Portfolio Holder: Finance

Reasons

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position and take any action to support the sustainability of the council’s financial position.

The Portfolio Holde for Finance 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 provided the quarter one 2023/24 projected financial outturn information for the general fund and housing revenue account (HRA).

Cabinet was informed that the February 2023 approved general fund budget for 2023/24 was balanced on the assumption of a £30m drawdown in reserves and the delivery of £34m in savings, efficiencies, and additional resources including £9m in respect of transformation which were un-itemised.

In relation to this Cabinet was advised that the projected outturn continues to assume the drawdown of the £30m in reserves, and in respect of the £34m of savings it assumes either their delivery or that equivalent alternative savings are delivered. Where these alternatives are of a one–off nature then this will add a pressure to the £44m funding gap for 2024/25 identified as part of the July MTFP Update report.

Cabinet was informed that services are expected to implement mitigation strategies to address emerging operational pressures identified within the first quarter, and that this is critical as the council does not have any earmarked reserves identified as available to support any drawdown over the £30m assumed in the original budget.