Purpose

To consider the
second quarter revenue and capital monitoring forecast and any
specific recommendations on the application of resources in-year,
including movements to and from reserves, as required by financial
procedure rules.

Content

RESOLVED –
 

1)   
That it be noted the revenue outturn position at Quarter 2 was a
forecast overspend of £5.1m (Q1: £5.9m) and that there
would be a requirement to balance the budget using reserves should
the overspend remain;

2)   
That it be noted the Quarter 2 position on the Dedicated Schools
Grant (DSG) was an in year deficit of
£14.7m (2024/25 £20m) to take the cumulative deficit to
£78.5m;

3)   
That it be noted the Quarter 2 HRA position was a projected
underspend of £318k and any underspend would be taken to HRA
reserves at year end. That it also be noted the current forecast
year end reserves position was £19m;

4)   
That the Quarter 2 forecast capital monitoring position for 2025/26
as set out in the accompanying slides (Appendix 1 slides 39-43 and
Appendix 3) be noted along with a proposed net reduction in the
2025/26 position of £29.3m due to (i) £28.9m
re-profiling of spend into future years (£23.4m General Fund
and £5.5m HRA)  (ii) £0.8m
net increase in the capital plan due to increased grant and S106
contributions (iii) approval to fully fund injection into the
capital plan for an MHCLG Community Cohesion Grant (£170k)
and WYCA Mayoral Renewables Grant Phase 1 (£110k) (iv)
delegated authority to the Executive Director of Place and Service
Director Finance to accept Mayoral Renewables Grant Phase 2 in the
event the Council is successful with its bid (v) approval of the
draw down of a fully repayable £250k from the Investment
& Modernisation Fund towards an Energy Efficiency Invest to
Save Scheme for LED lighting and control upgrades across six
Council-owned leisure centres operated by Kirklees Active Leisure
(KAL) and (vi) that as a means of helping reduce revenue
overspends, an exercise to identify expenditure that could be
charged to capital would be undertaken. Any such capitalisation
would be funded from capital receipts.

5)   
That the Quarter 2 treasury management prudential indicators (slide
43-57, Appendix 1) be noted.