Agenda item

Financial Year 2024/25 - Quarter Three Revenue Budget Monitoring

To receive a report from the Corporate Director, Resources (S.151 Officer).

Decision:

Resolved:

Cabinet approves:

a) The following transfers to earmarked reserves;

i. £0.120m for activity funded by the Supporting Families grant which will fall into future years;

ii. £0.285m for activity relating to improvements in early help in schools and with families in SEN and targeted services;

iii. £0.803m to the High Needs Sustainability Activity Reserve in relation to High Needs transformation activity which will fall into future years;

b) That the balances held in the Inquests and Salisbury Recovery earmarked reserves totalling £0.466m that are no longer required be transferred to the General Fund Reserve.

Cabinet notes:

c) the current revenue budget is forecast to overspend by £1.749m by the end of the financial year.

d) the current forecast savings delivery performance for the year.

e) the forecast overspend on the HRA of £0.696m and the impact on the HRA reserve.

f) The additional forecast overspend against Dedicated Schools Grant (DSG) budgets of £0.593m and the impact on the cumulative DSG deficit.

g) The transfer from earmarked reserves;

i. £0.450m from the transformation reserve as approved by the Transformation Board to support planned FACT activity;

ii. £0.455m from the transformation reserve as approved by the Transformation Board to support planned HNB transformation activity;

iii. £0.055m to fund the Short Breaks grant scheme spend in 2024/25 financial year;

iv. £0.060m to fund external consultant support for the SEN Inspection;

v. £0.057m from the Not in Employment Education or Training (NEET) reserve for 2024/25 activity;

vi. £0.036 from the Business Plan Priority Reserve for Enforcement Activity.

Reason for Decision:

To inform effective decision making and ensure sound financial management as part of the Councils overall control environment.

To inform Cabinet on the forecast revenue financial position of the Council for the financial year 2024/25 as at quarter three (31 December 2024), including delivery of approved savings for the year.

Minutes:

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report which provided details of the revenue budget monitoring forecast position for the third quarter of the financial year 2024/25. This was based on the position towards the end of December 2024, and any known significant changes in January 2025.

Cllr Botterill reported a net overspend for the year of £1.749m, a slight increase from the previously reported figure in the previous quarter. He noted that there are no proposals to fund the position from reserves as management are confident that this position will be managed back into balance by the end of the year. Officers confirmed this position and highlighted an additional allocation from the Government of £500,000, which would assist in balancing the budget.

The Leader commented on the lack of opposition members attending the meeting and therefore the opportunity to provide challenge on the revenue budget had been lost. He welcomed the Council’s position of not reverting to reserves in order to balance budgets, as is the case in a number of other councils.

Cllr Graham Wright, Chairman of the Overview and Scrutiny Management Committee and Cllr Pip Ridout, Chairman of the Financial Planning Task Group, reported that the Task Group met on the 30 January to consider the report, and some of the issues considered included the implications for reserves and next year’s budget of a year-end deficit, pressure on the adult social care and SEND budgets, strategies to manage overspends and the Designated Schools Grant. The Task Group noted the confidence of the Cabinet Member and the Corporate Director - Resources that the Council will have a balanced budget by the end of Q4. Cllr Wright and Cllr Ridout thanked officers for their continued work in actively managing the council’s finances.