Issue - meetings

Council Budget Monitoring 2024/25 Quarter Two

This report provides the quarter two 2024/25 projected financial outturn information for the general fund and housing revenue account (HRA).

The February 2024 approved general fund budget for 2024/25 was balanced on the assumption of £38m in savings, efficiencies, and additional resources.

Consistent with the position being reported by other upper tier authorities, the relentless demand for services and ever-increasing costs is a continual financial challenge. The 2024/25 quarter two budget monitoring position for BCP Council is a net forecast overspend for the year of £3m. In line with the previous year, this is after the release of the corporate contingencies in support the overall position.

Officers are committed to working tirelessly to bring the forecast back into balance. The intention is that Portfolio Holder, Directors, and Budget Holders will be able to demonstrate the impact of this effort as part of the quarter three budget monitoring report. This work will include the implementation of mitigation strategies and a tightening of controls on expenditure. It is critical they do so to maintain the council’s financial health as the medium-term financial plan makes no allowance for the current forecast overspend.

Additional documents:

Decision:

RESOLVED that Cabinet: -

(a) Note the budget monitoring position for quarter two 2024/25.

(b) Request Corporate Directors to implement mitigation strategies to reduce their budget pressures alongside tightening their implementation of the expenditure controls in place.

Voting: Unanimous

Portfolio Holder: Finance

Reason

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.

Minutes:

The Portfolio Holder 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 two 2024/25 projected financial outturn information for the general fund and housing revenue account (HRA).

In relation to this Cabinet was informed that the February 2024 approved general fund budget for 2024/25 was balanced on the assumption of £38m in savings, efficiencies, and additional resources.

Cabinet was advised that consistent with the position being reported by other upper tier authorities, the relentless demand for services and ever-increasing costs is a continual financial challenge.

Cabinet was informed that the 2024/25 quarter two budget monitoring position for BCP Council was a net forecast overspend for the year of £3m, and that in line with the previous year, this is after the release of the corporate contingencies in support the overall position.

Further to this Cabinet was advised that officers are committed to working tirelessly to bring the forecast back into balance, and that the intention was that the Portfolio Holder, Directors, and Budget Holders will be able to demonstrate the impact of this effort as part of the quarter three budget monitoring report.

In relation to this Cabinet was advised that this work will include the implementation of mitigation strategies and a tightening of controls on expenditure, and that it was critical they do so to maintain the council’s financial health as the medium-term financial plan makes no allowance for the current forecast overspend.

The Chair of the Overview and Scrutiny Board addressed the Cabinet advising that at the meeting the previous evening the Board had supported the recommendations within the report.