Issue - meetings

To provide a general update and overview of the Council’s financial position against the 2023/24 budget and looking ahead to 2024/25 and beyond.

RESOLVED that Cabinet -

(a)    notes the Council’s in-year financial position at the end of September 2023 along with the updated financial forecast for 2024/25 and beyond;

(b)    approves the proposed adjustments to the 2023/24 budget, as set out in Section 1 of Appendix 1H to the Report of the Leader of the Council/Corporate Finance & Governance Portfolio Holder and requests Officers to review the potential on-going impact in 2024/25 and beyond, where necessary, as part of developing the forecast and detailed estimates for further consideration by Cabinet later in the financial year;

(c)    approves the carry forwards from 2022/23, as set out in Section 2 of Appendix 1H and that, in respect of items 1) and 2) therein, Officers be requested to provide an update on the associated work / activities within the Quarter 3 Financial Performance later on in the financial year;

(d)    notes the updated position in respect of the treasury transactions with Birmingham City Council set out in the report;

(e)    notes the updated financial forecast set out in the report and requests Officers, in consultation with the relevant Portfolio Holders, to continue to develop the financial forecast proposals alongside the development of the Council’s priorities, as part of the wider framework within which to identify the necessary budget reductions to support the Council’s long-term financial sustainability; and

(f)     requests that the Resources and Service Overview and Scrutiny Committee be consulted on the latest financial position of the Council, as set out in the report.

Cabinet considered a report of the Leader of the Council & Portfolio Holder for Corporate Finance and Governance (A.3), which provided it with a general update and overview of the Council’s financial position against the 2023/24 budget and looking ahead to 2024/25 and beyond.

That report was split over two distinct sections as follows:

1)    The Council’s in-year financial position against the budget at the end of September 2023; and

2)    An updated long term financial forecast

Members were reminded that previously an additional section had been included within these reports that had undertook a detailed view of items that would have an impact on the in-year position but also an on-going impact on the later years of the forecast. Although this report set out a number of adjustments to the in-year budget, any longer term impacts remained under review at present. However, they would be revisited as part of developing the forecast for 2024/25 and beyond, and they would be reported within future financial performance / budget reports.

SECTION 1 - In respect of the in-year financial position at the end of September 2023:

It was reported that the position to the end of September 2023, as set out in more detail within the appendices, showed that, overall, the General Fund Revenue Account was underspent against the profiled budget by £1.857m.

Cabinet recalled that, as part of developing the budget for 2023/24, which had been agreed by Full Council in February 2023, a number of adjustments had been made to reflect emerging and/or on-going issues. Therefore, only a limited number of variances had developed during the first half of this financial year. Where variances had been highlighted, those broadly reflected known issues where further review / consideration might be necessary or reflected the timing of general expenditure and/or income budgets. It was acknowledged that other expenditure or income trends might still emerge / develop over the remainder of the financial year.

Members were made aware that this report also set out a number of additional issues that had emerged during the second quarter of the year.

In respect of other areas of the budget such as the Housing Revenue Account, capital programme, collection performance and treasury activity, additional details were set out in this report where necessary.

A half-year treasury management review had been carried out with a summary set out in this report. A further update had also been provided in respect of the recent treasury transactions undertaken with Birmingham City Council.

Members were reassured that any emerging issues would be monitored and updates provided in future reports, which would include their consideration as part of updating the long-term financial forecast.

Cabinet was advised that a limited number of in-year budget adjustments were proposed as set out in Appendix 1H, with an associated recommendation also included within the report. That same appendix also set out a number of outstanding carry forward requests from Services, for which Cabinet had requested the provision of additional information to allow them to  ...  view the full minutes text for item 48