Issue - meetings

Report of the Chief Executive

Councillor Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report on the first quarterly revenue budget monitoring forecast position (as at 30 June 2022) for the financial year 2022/23, and an update on the Medium Term Financial Strategy and projected budget gap for the financial year 2023/24.

Councillor Botterill noted that certainty would increase in future quarters, but that at present there was a potential year end underlying overspend of £12.35m and a net overspend of £6.02m. He noted this was before the finalisation of the pay award for 2022/23, with the forecast reflecting a position of the employers offer made at the end of July 2022.

Councillor Botterill stated the yearly deficit would be covered through reserves, which supported the position taken in the last financial year which enabled the management of the current position. The budget gap would, however, need to be addressed as part of the Medium Term Financial Strategy.

The Leader provided further comments on the constant monitoring of the financial position, as well a need to assess the impacts of inflation, particularly in areas of high relevance to local authorities.

Councillor Gavin Grant, as Vice-Chairman of the Financial Planning Task Group, provided details of recent meetings with the Cabinet Member and officers. He highlighted concerns over the dedicated schools grant, which continued to have a significant deficit, and uncertainty whether government would continue to recognise this as beyond local authorities’ direct control. There was also discussion on fees and charges, and car parking returns.

Councillor Ian Thorn sought additional details on use of the latent demand reserve, highway contract inflation and the economy and regeneration budget.

At the conclusion of discussion, it was then,

Resolved:

That Cabinet approve:

a)    the transfer of £0.110m into a SEN Inspection reserve, as detailed in paragraph 37 of the report;

That Cabinet note:

a)    the current revenue budget is forecast to overspend by £6.020m by the end of the financial year and that this will be managed through the use of earmarked reserves;

b)    the current forecast savings delivery performance for the year;

c)    The £0.531m draw from the Transformation Reserve to fund transformation activity in 2022/23 in the Family and Children’s Transformation (FACT) programme and Customer Experience programme;

d)    the updated position in respect of the current estimated financial gap for 2023/24;

e)    the key dates and timescales that are required to set a balanced budget.

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 2022/23 as at quarter 1 (30 June 2022), including delivery of approved savings for the year.

To inform Cabinet on the current position for the setting of the 2023/24 budget, it begins the process and focus for setting plans and resources for providing the services and support that will be essential for delivering a financially sustainable council and effective, quality  ...  view the full minutes text for item 79