Agenda item

RESOLVED:

1.1.         To note the General Fund revenue budget outturn is forecast to breakeven at Period 7, after the forecast utilisation of £63m capitalisation directions requested from DLUHC and £1.5m of the corporate risk contingency budget. It is not planned to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.         To approve the budget movements between directorates to match the movement of teams between directorates as set out in paragraph 4.13.

1.3.         To approve within budget inter-directorate virements from Corporate to service directorates for pay inflation (£10.270m) (para 4.95).

1.4.         To approve within budget inter-directorate virement of £0.698m from the Corporate economic demand pressures budget to the Children, Young People and Education directorate as set out in paragraph 4.97.

1.5.         To approve within budget inter-directorate virements from Corporate to service directorates to correct General Fund recharge budgets relating to the HRA, Public Health, capitalisation of salaries and corporate support (overhead) recharges, and staffing and income budget corrections (£5.802m) (para 4.99).

1.6.         To note the progress in MTFS savings achievement as set out in paragraph 4.107.

1.7.         To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.102.

1.8.         To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £12.0m.

1.9.         To note the General Fund capital programme 2023-24 forecast underspend of £18.0m against the revised capital budget of £144.7m.

1.10.     To note the HRA capital programme 2023-24 forecast overspend of £5.7m against the revised capital budget of £33.2m.

1.11.     To note the Council’s historic borrowing and debt burden continues to be critical to the sustainability of the Council’s revenue budget. Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regards to its level of indebtedness and balancing the budget to ensure it can deliver sustainable local government services.

1.12.     To note that the Council continues to operate Spend Control Panels to ensure that tight financial control and assurance oversight are maintained.

1.13.     To note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.

The Executive Mayor introduced the Period 7 Financial Performance Report.

The Cabinet Member for Finance, Councillor Jason Cummings, shared with Cabinet that the service was predicting a yearend balance position which was positive, and noted that every department that had predicted a change in their position, saw a positive change with a number of departments predicting a yearend underspend position. Further, the potential impact on the contingency plan had significantly reduced to £1.5 million pounds, with the continued aim to be reduced.

The Shadow Cabinet Member for Finance, Councillor Callton Young, asked a question relating to the transformation programme published in November 2022 as highlighted in paragraph 4.104 of the report, and asked for examples of transformation projects that benefitted from early investment that had already delivered service, improvements and savings; and further, in paragraph 4.106 relating to the transformation programme management office, asked whether the service was working, and whether it was actively helping to coordinate and drive through the service improvements being sought and at the pace required.

The Cabinet Member for Finance, Councillor Jason Cummings, responded on the transformation programme addressing that the financial challenges this council was facing could have short-term decisions and changes in service provision, and for long-term transformation for the scale of savings of this council was essential to commence as early as possible, highlighting that the council would experience financial challenges for years to come as addressed within the MTFS reports. There was also to be a deep dive review into the transformation programme assisted by Scrutiny and Overview Committee and the Transformation Director. An example of a transformation project that produced tangible results included the work on the housing benefits subsidy, which had produced in-year savings this year, and future savings that would apply to every year going forward within the MTFS. There were further projects that had produced great results.

The Executive Mayor in Cabinet RESOLVED:

1.1.        To note the General Fund revenue budget outturn is forecast to breakeven at Period 7, after the forecast utilisation of £63m capitalisation directions requested from DLUHC and £1.5m of the corporate risk contingency budget. It is not planned to utilise the risk contingency budget and directorates will work to bring the service directorate positions within budget.

1.2.        To approve the budget movements between directorates to match the movement of teams between directorates as set out in paragraph 4.13.

1.3.        To approve within budget inter-directorate virements from Corporate to service directorates for pay inflation (£10.270m) (para 4.95).

1.4.        To approve within budget inter-directorate virement of £0.698m from the Corporate economic demand pressures budget to the Children, Young People and Education directorate as set out in paragraph 4.97.

1.5.        To approve within budget inter-directorate virements from Corporate to service directorates to correct General Fund recharge budgets relating to the HRA, Public Health, capitalisation of salaries and corporate support (overhead) recharges, and staffing and income budget corrections (£5.802m) (para 4.99).

1.6.        To note the progress in MTFS savings achievement as set out in paragraph 4.107.

1.7.        To note the work that has commenced on the Council’s Transformation Programme as set out from paragraph 4.102.

1.8.        To note the Housing Revenue Account (HRA) revenue budget outturn is forecast to overspend by £12.0m.

1.9.        To note the General Fund capital programme 2023-24 forecast underspend of £18.0m against the revised capital budget of £144.7m.

1.10.     To note the HRA capital programme 2023-24 forecast overspend of £5.7m against the revised capital budget of £33.2m.

1.11.     To note the Council’s historic borrowing and debt burden continues to be critical to the sustainability of the Council’s revenue budget. Dialogue with the Department for Levelling Up, Housing and Communities (DLUHC) continues, and the Council is seeking further financial support from Government in regards to its level of indebtedness and balancing the budget to ensure it can deliver sustainable local government services.

1.12.     To note that the Council continues to operate Spend Control Panels to ensure that tight financial control and assurance oversight are maintained.

1.13.     To note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.