Agenda item

To consider the following budget items prior to Cabinet:

The Chief Finance Officer presented the item, which consisted of 2 reports, Financial Outturn 2024/25 and Medium-Term Financial Plan Update, copies of which had been circulated to each Member and copies of which appear as Appendix 'C' and ‘D’ to these minutes in the Minute Book. The reports outlined the Council’s financial performance over the past year, including a revenue surplus of £1.2 million, and set out the financial planning assumptions and risks for the years ahead. A number of key areas were raised in discussion of this item including:

·          SEND Budget and High Needs Block - Concern was expressed about the continued under forecasting of SEND expenditure and the growing deficit in the High Needs Block. The national context of the issue along with the scale and complexity of it were noted by the Board. The Board endorsed the actions taken by officers, the Leader of the Council, Portfolio Holder and in addressing the SEND deficit. It was noted that the Children’s Services O&S Committee continued to monitor the situation.

·          Use of Reserves and Savings - The Financial Outturn report highlighted that the 2024/25 budget had been balanced using savings rather than reserves, marking a shift from previous years. Members welcomed this approach but noted the ongoing challenge of delivering savings in a high-cost environment.

·          Resident Card Scheme - The Board noted the proposal to set aside £0.5 million in an earmarked reserve to manage potential risks associated with income from the new resident card pilot scheme.

·          Poole Museums Capital Scheme - Concerns were raised about the forecasted overspend of £0.55 million and a £0.8 million shortfall in third-party contributions. The revised funding strategy would require an increase in prudential borrowing of £1.3 million.

·          Business Rates Adjustment - In response to a question regarding the budget being balanced through savings the Chief Finance Officer explained that an in-year adjustment to business rates had provided a one-off resource that could be used to address short-term pressures.

·          Council Tax Collection - The Board discussed the implications of collecting Council Tax over 12 months, with some concern expressed about the potential impact on household finances.

·          Future Year Savings Programme - Members sought clarification on where future savings would be made and how realistic the assumptions were, particularly considering service demand pressures.

·          Redhill Paddling Pool -  A query was raised regarding the status of this facility in the 2025/26 budget refresh, with a request for clarification on whether it had been removed from the savings programme.

·          Legal and Related Costs - A question was asked about whether provisions had been made in earmarked reserves for potential legal costs, particularly in light of possible risks.

Following discussion, it was agreed to note the content of the Financial Outturn and MTFP reports and:

RESOLVED that the Overview and Scrutiny Board endorses Recommendation C of the Medium-Term Financial Plan report, acknowledging the actions taken by officers, the Leader of the Council, and the Children’s Services Overview and Scrutiny Committee in addressing the SEND deficit.