Issue - decisions

Finance Update Includes Quarter One 2022/23 Budget Monitoring Report

09/09/2022 - Finance Update Includes Quarter One 2022/23 Budget Monitoring Report

RESOLVED that Cabinet: -

(a)           Notes that an application has been submitted under the Exceptional Financial Support process for a capitalisation direction of £76m (£20m in 2022/23) to principally fund this Councils Transformation programme as set out in this report;

(b)          Brings forward to the 28 September Cabinet meeting proposals to prudently position the council to deliver a balanced budget for 2023/24 from traditional local government financial management processes and revenue sources;

(c)           Agrees to bring forward a capital receipts schedule for additional, non-strategic, asset sales that could be used as an alternative method of financing the Council’s Transformation Investment Programme via the Flexible Use of Capital Receipts (FUCR);

(d)          Agrees to explore options across the council to deliver revenue through further commercialisation and a review of fees and charges as a response to the cost-of-living crisis;

(e)           Approves the capital virements as set in Appendix D paragraph 76 to this report;

(f)            Requests the Corporate Directors and Portfolio Holders for Children’s Services, Transformation, and Operations to bring forward papers outlining

                    (i)    in-year service pressures and the mitigation strategy that will be put in place to manage them.

                   (ii)    the timeline for the increase in costs for the transformation programme and provide an update on the delivery of 2022/23 budgeted and future years savings.

(g)          Agrees to place an update on the Financial Strategy as a standing Cabinet agenda item until such time as there is a balanced budget delivered for 2023/24;

(h)          Agrees that no new financial commitments will be made until such time as there is a balanced budget for 2023/24 other than with the specific agreement of the Chief Finance Officer in consultation with the Portfolio Holder for Finance; and

(i)            Prepare financial forecasts based on the assumption of accepting and receiving a £20m capitalisation direction for 2022/23 from government which will need Council approval, to be sought once a final offer has been received from DLUHC.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reason

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position.

To provide a financial update to Cabinet further to the update to the Governments Flexible Use of Capital Receipts guidance and the realisation of the risk outlined in the 2022/23 Budget report.

To comply with the council’s financial regulations regarding budget virements.