Agenda item

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 2024/25.

The financial revenue outturn is a £1.2m surplus, an improvement on the reported quarter three balanced position, with this delivered in a challenging budget environment.

In February 2024 Council set a balanced budget and medium-term financial plan over the 4-year period to 31 March 2028 based on conventional local government financial management process. This addressed the inherited £30m structural deficit from using reserves rather than savings to balance the 2023/24 budget.

The non-deliverability of previous year savings was addressed, particularly those expected from the transformation investment. New fully itemised savings of £38m were programmed for 2024/25 with 86% being achieved through service transformation, third party spend reduction, staff savings and raising additional income. Mitigations have been found in other areas to reduce the impact of those unable to be delivered.

The budget recognised the ongoing cost-of-living and service demand pressures that face all local authorities and this required council tax to be increased by the maximum amount permitted by government of 4.99%, with the same increase assumed for future years.

A revised approach was taken to the annual repayment of debt with voluntary contributions made above the statutory minimum to reduce the burden for future years.

RESOLVED that Cabinet: -

(a)     Noted the final outturn position for 2024/25;

(b)    Agreed to set aside £0.5m in an earmarked reserve to manage the potential risk associated with future income streams from the introduction of the resident card pilot scheme in 2025/26.

(c)     Agree the residual surplus of £0.7m is transferred to unearmarked reserves.

(d)    Agree the capital virements between schemes funded by the bus services improvement plan as set out in appendix C1.

(e)     Note that the museums capital scheme is forecast to exceed the approved resources by £0.55m, alongside a £0.8m shortfall in third party contributions as set out in appendix C3.

(f)      Recommend that Audit and Governance Committee recommend to Council to approve the revised funding strategy for the Poole museums capital schemes which will mean an increase in the approved prudential borrowing of £1.3m as set out in appendix C3.

RECOMMENDED that Council:

Approves the revised funding strategy for the Poole museums capital schemes which subject to Audit and Governance Committee approval will mean an increase in the approved prudential borrowing of £1.3m.

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.

To comply with the council’s financial regulations regarding capital virements, acceptance of grants and new borrowing.

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.

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 2024/25.

The financial revenue outturn is a £1.2m surplus, an improvement on the reported quarter three balanced position, with this delivered in a challenging budget environment.

In February 2024 Council set a balanced budget and medium-term financial plan over the 4-year period to 31 March 2028 based on conventional local government financial management process. This addressed the inherited £30m structural deficit from using reserves rather than savings to balance the 2023/24 budget.

The non-deliverability of previous year savings was addressed, particularly those expected from the transformation investment. New fully itemised savings of £38m were programmed for 2024/25 with 86% being achieved through service transformation, third party spend reduction, staff savings and raising additional income. Mitigations have been found in other areas to reduce the impact of those unable to be delivered.

The budget recognised the ongoing cost-of-living and service demand pressures that face all local authorities and this required council tax to be increased by the maximum amount permitted by government of 4.99%, with the same increase assumed for future years.

A revised approach was taken to the annual repayment of debt with voluntary contributions made above the statutory minimum to reduce the burden for future years.

RESOLVED that Cabinet: -

(a)     Noted the final outturn position for 2024/25;

(b)    Agreed to set aside £0.5m in an earmarked reserve to manage the potential risk associated with future income streams from the introduction of the resident card pilot scheme in 2025/26.

(c)     Agree the residual surplus of £0.7m is transferred to unearmarked reserves.

(d)    Agree the capital virements between schemes funded by the bus services improvement plan as set out in appendix C1.

(e)     Note that the museums capital scheme is forecast to exceed the approved resources by £0.55m, alongside a £0.8m shortfall in third party contributions as set out in appendix C3.

(f)      Recommend that Audit and Governance Committee recommend to Council to approve the revised funding strategy for the Poole museums capital schemes which will mean an increase in the approved prudential borrowing of £1.3m as set out in appendix C3.

RECOMMENDED that Council:

Approves the revised funding strategy for the Poole museums capital schemes which subject to Audit and Governance Committee approval will mean an increase in the approved prudential borrowing of £1.3m.

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.

To comply with the council’s financial regulations regarding capital virements, acceptance of grants and new borrowing.