Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: February 11, 2025

Purpose:

Content: The Cabinet considered a report of the Director of Corporate Services and Chief Finance Officer, which sought to inform of the Council’s forecast 2024/25 Financial Position at the end of December 2024. The report also sought approval of the Budget pressures outlined at section 5.3.2 of the report and agreement to switch capital budgets within Economy & Place Directorate as outlined at section 5.5.3 of the report.   The Deputy Chief Finance Officer was in attendance to present the report and to address the questions and the comments of the Cabinet Members.   The Senior Officer informed that the 2024/25 forecast Revenue outturn position was a pressure of £2,708k, arising mainly from significant pressures in Integrated Care & Health, and Children’s Services, partially offset by in year savings, primarily from Finance Control, Public Health and Corporate Services. The forecast pressure was prior to the consideration of non-automatic Budget Carry Forward requests. However, if the Council still had an overall overspend position at the end of the financial year, the Budget Carry Forward requests would not be approved. Any variation from budget at outturn would be transferred to or from the Equalisation Reserve.   Forecast Capital expenditure of £87,330k, after rephasing of £28,351k into future years. The majority of the rephased expenditure, £25,248k (89%) related to schemes within Economy & Place. This is funded through grants, invest to save and prudential borrowing. The balance of £3,103k was funded through grants, capital receipts and prudential borrowing.   The forecast 2024/25 Collection Fund position, being a surplus of £5,347k, including the Council’s share of £4,929k. The surplus of £4,929k had been reflected in the Council’s 2025/26 budget.   Quarter 3 updates also included the Property Growth Fund position as detailed in section 5.8 of the report and the Treasury Management position, discussed in section 5.9 and Appendix C of the report.   Resolved: 1.    That the 2024/25 forecast positions for Revenue, Capital, and the Collection Fund as at the end of December 2024, as detailed in section 5 of the report be noted; 2.    That the Budget Carry Forward and New/ Transfer to Reserves requests summarized in section 5.3.1 of the report be noted; 3.    That the Budget Pressure requests detailed in section 5.3.2 of the report be approved; 4.    That the update on the Health and Social Care Pooled Budget detailed in section 5.4 of the report be noted; 5.    That the net Capital budget changes of £1,222k, detailed in section 5.5.1of the report be noted; 6.    That the Capital re-phasing of £28,351k into future years detailed in section 5.5, and Appendix B (2) of the report be noted; 7.    That the request to switch capital budgets within Economy & Place directorate as detailed in section 5.5.3 of the report be approved; 8.    That the Collection Fund update detailed in section 5.7 of the report be noted; 9.    That the Property Growth Fund update in section 5.8 of the report be noted; 10. That  the Treasury Management update for Quarter 3 in section 5.9, and Appendix C of the report be noted.   Reason for decision: Cabinet Members should be kept updated on the financial position of the authority, as effective budget management was critical to ensuring financial resources were spent in line with the budget and were targeted towards the Council’s priorities. This report focused on the forecast 2024/25 financial position as at the end December 2024.   Alternatives considered and rejected: There was no alternative, as the Council financial reporting complied with CIPFA’s Financial Management Code and its standards to ensure management of financial resources in the short, medium and long term, management of financial resilience to meet unforeseen demands on services, and management of unexpected shocks within financial circumstances.