Issue - meetings

The report presents the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2023/24.

In general terms the council’s attempt to improve the financial health and sustainability of the authority have been successful with the 2023/24 drawdown on specific reserves reduced from the original budgeted amount £30m to £23m at financial outturn. At quarter three the estimated drawdown was forecast to be £27m although this was expected to improve due to the ongoing application of a freeze on expenditure and the Cabinet decision to release a previous accrual relating to the Dolphin Shopping Centre.

Services have delivered 94% of the budgeted savings of £34m, achieved through transformation, third party spend reduction, staff savings and raising additional income.

The Financial Outturn 2023/24 report and the Medium Term Financial Plan (MTFP) Report were considered in conjunction with each other. The Portfolio Holder for Finance presented the reports, a copy of each had been circulated to each Member and copies of which appear as Appendix 'A' and Appendix ‘B’ to these Minutes in the Minute Book. The Board considered the reports of which the Outturn Report presented the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2023/24.

The Board was advised that in general terms the Council’s attempt to improve the financial health and sustainability of the authority had been successful with the 2023/24 drawdown on specific reserves reduced from the original budgeted amount of £30m to £23m at financial outturn. At quarter three the estimated drawdown was forecast to be £27m although this was expected to improve due to the ongoing application of a freeze on expenditure and the Cabinet decision to release a previous accrual relating to the Dolphin Shopping Centre.  Services have delivered 94% of the budgeted savings of £34m, achieved through transformation, third party spend reduction, staff savings and raising additional income. The Board raised a number of points in the subsequent discussion, including:

The Board also considered the MTFP report which:

·       Aimed to ensure the council continues to maintain a balanced 2025/26 budget forecast by considering the impact that various assumptions would have on the underlying approved position. 

·       Proposed a financial strategy to support the delivery of a robust and financially sustainable budget for 2025/26. 

·       Proposed a budget planning process and timeline for key financial reports.

·       Presented the outcome of the CIPFA Financial Resilience Review undertaken in the summer/autumn of 2023 and finalised in the spring of 2024.

The Board was advised of a letter submitted by the Director of Finance to DLUHC and CIPFA outlining concerns regarding the impact the deficit on the Dedicated Schools Grant is having on the financial sustainability of the Council. This recognised that due to the forecast £92m accumulated deficit on the 31 March 2025 the Council will be technically insolvent (a situation where the deficit on the DSG is greater than the total reserves held by the council with a negative overall general fund position) when the current statutory override finishes on 31 March 2026. The Board raised a number of issues in the subsequent discussion, including:

·       Rebase of the 2024/25 Budget - This was due to the reflective consideration of the final quarter budget for 2023/24 and movements in this provided some ability to readjust the 2024/25 budget.

·       CIPFA recommendations – The Board asked if capital-based solutions or invest to save as referenced in the CIPFA report could be given further consideration. It was noted that on a per head basis BCP spent the lowest amount of any of the comparator authorities. The Portfolio Holder confirmed that the aim of the Council was to invest in services but that  ...  view the full minutes text for item 18