Purpose

To receive the revenue and capital budget monitor for the
second quarter of the 2023/24 financial year.

Decision

That the following be noted:
 

1. 
The Council’s
forecast overspend at the end of Quarter 2 is £8.2m, up
considerably from £5.3m at the end of Quarter 1.  The risk is therefore high that without
significant reductions in spend over the remainder of the financial
year, the Council will be unable to balance its budget within the
Capitalisation Direction.

 

2. 
Service revenue
budgets are forecast to overspend by £15.6m in
2023/24.  There are Corporate
underspends in respect of interest costs and receipts (£5.7m)
and the Corporate Contingency budget (£5.4m) totalling
£11.1m.  However, the Minimum
Revenue Provision (MRP) is showing an overspend of
£3.7m.  Service and Corporate
budgets combined are showing an overspend of
£8.2m. 

 

3. 
If drastic reductions
are not made in the remainder of the financial year, the Council
will be unable to balance its budget within the current
capitalisation direction.

 

4. 
Medium Term Financial
Strategy Savings (MTFS) of £20.5m are expected to be
delivered in 2023/24 against planned savings of
£22.4m.

 

5. 
That the Capital
programme is forecast to underspend in 2023/24 by £25.5m.
Requests for slippage would require separate authorisation and are
assumed here for the sake of clarity.  A
formal request for approval will form part of the Q3 Budget
Management report to Cabinet in February.