Agenda item - Financial Year 2024/25 - Quarter One Revenue Budget Monitoring

To receive the report of the Chief Executive, Deputy Chief Executive and Corporate Director of Resources and Director of Finance and Procurement (S151 Officer).

Cabinet approved

The transfer of £2.237m to a new High Needs Sustainability Activity reserve.

Cabinet noted

the current revenue budget is forecast to overspend by £8.284m by the end of the financial year.

the current forecast savings delivery performance for the year.

the forecast overspend on the HRA of £1.042m and the impact on the HRA reserve.

The forecast overspend against Dedicated Schools Grant (DSG) budgets of £9.893m and the impact on the cumulative DSG deficit.

The transfer from earmarked reserves;

i. £0.079m from the Adults Programmes reserve to fund temporary roles and LD budget pressures.

ii. £0.018m from the leisure reserve to fund virtual studios

iii. £0.026m from leisure reserve to fund pool pods

iv. £0.007m for Enforcement Activity from the Business Plan Priority reserve

v. £0.051m drawdown to fund flexible pastoral support for care experienced young people in Families and Children’s

vi. £0.086m drawdown from the Supporting Families reserve to fund planned Families and Children expenditure

vii. £1.328m drawdown to fund flexible pastoral support in schools in Education & Skills

viii. £0.123m drawdown from the School Improvement reserve to offset savings in Education and Skills

ix. £0.231m drawdown from the Health & Safety reserve to fund investment in personal safety and other Health and Safety requirements in Assets

x. £0.204m from the iBCF reserve to fund schemes in 2024/25 in line with the approved plan

Reasons for Proposals

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 one (30 June 2024), including delivery of approved savings for the year.

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report which provided details of the revenue budget monitoring forecast for the first quarter of the financial year 2024/25. This was based on the position at the end of June 2024, and also provided an update on the Medium-Term Financial Strategy (MTFS) and budget gap for future years.

Cllr Botterill explained that Wiltshire’s revenue budget position compared favourably with neighbouring and comparator authorities, with a current net overspend of £8.3m, a variance which could be managed within the current financial year. It was noted that cost control measures would be taken, and action implemented to address this position and there were no proposals to fund the position from reserves.

Cabinet noted the update, and the proposals contained within the report, including a transfer to a new reserve account and a number of transfers from earmarked reserves. The Leader reminded Cabinet that the Council had regularly delivered a balanced budget and confirmed that appropriate steps were being taken to deal with current overspends.

Cllr Chris Williams, Vice-Chairman of the Overview and Scrutiny Management Committee reported that the Management Committee considered the report on 12 September 2024 with debate focussing on forecast overspend in adult social care, representing the largest part of the overall overspend. Concern was expressed at the forecast, although the management actions to address the overspend were noted. In view of this issue the Chair of the Management Committee asked the Chairs of Financial Planning Task Group and Health Select Committee to monitor the financial and service implications over the coming months. In addition, the Management Committee would continue to receive revenue budget updates.

Cllr Pip Ridout, Chairman of the Financial Planning Task Group, reported that the Task Group considered the report on 13 September 2024. Cllr Ridout endorsed the comments of the Management Committee and reported that the Task Group had asked numerous questions about issues raised in the report, these included questions about Adult Social Care, dedicated schools grant, SEND pupils, underspends and overspend in Planning budgets and many other areas of interest.

Cllr Ian Thorn, Leader of the Liberal Democrat Group, commented on current overspends and how these reflected challenges nationally. Cllr Botterill and the S151 officer provided assurances that variances would be carefully managed within the current financial year to ensure mitigation actions deliver the required results. Immediate action would be taken to address issues for the overspend and on a longer-term basis to manage the demand for services and its funding.

Resolved: