Agenda item

To enable Cabinet to consider the updated financial forecast and budget proposals for 2024/25 for consultation with the Resources and Services Overview and Scrutiny Committee.

RESOLVED that Cabinet -

a)     approves the updated Financial Forecast and proposed budget position for 2024/25 as set out in report A.4 and its appendices; and

b)     requests the Overview and Scrutiny Committees’ comments on this latest financial forecast and proposed budget position for 2024/25.

Cabinet considered a report of the Leader of the Council & Portfolio Holder for Corporate Finance and Governance (A.4), which enabled it to consider the updated financial forecast and budget proposals for 2024/25 for consultation with the Overview and Scrutiny Committees.

Cabinet was aware that a ‘live’ forecast was maintained and reported to Members throughout the year.  The most up to date position in December each year was translated into the detailed budget for the following year for consultation with the Overview and Scrutiny Committees. As part of maintaining a ‘live’ forecast, this report ‘built’ on the last position that had been presented to Cabinet on 10 November 2023.

It was reported that, despite the challenging financial and economic environment, confidence in the long term approach to the forecast remained, which was supported by the forecast risk fund. The Council had maintained a prudent and sustainable approach to its long term plan, which provided the ‘platform’ against which it could consider its financial position in response to the very challenging economic outlook it continued to face.

Members were informed that further changes to the forecast had been made since 10 November 2023, with a revised position set out in Appendix A to report A.4. The changes required broadly reflected updates to cost pressures and savings. Those cost pressures included to date reflected unavoidable items. Work remained on-going in consultation with Services and it was likely that additional cost pressures would need to be included in later iterations of the forecast before final budget proposals were recommended for presenting to Council in February 2024.

Cabinet was advised that, in terms of the savings identified to date, those could be considered as ‘secured’ and not projections, given the nature of the budgets they related to. Although the income from treasury activities would be subject to various changes during 2024/25 the estimated saving included was based on a prudent approach and assumptions on likely cash balances and projected interest rates.

Taking the above into account and in comparison with the position reported to Cabinet on 10 November 2023, the net overall position reflected a forecasted annual deficit of £2.674m (an increase from £2.422m).

Members were told that an annual review of reserves had also been undertaken, which highlighted the need to continue to maintain a number of reserves to support key actions / activities as part of the Council’s overall prudent and sustainable approach to managing its finances.

Cabinet also heard that any changes emerging from the Local Government Finance Settlement for 2024/25 would be reflected in the forecast that would be reported to Cabinet in January 2024 when it considered its final budget proposals for recommending to Full Council in February 2024. That budget included a Council Tax levy increase of 3%, with this level of increase expected to be confirmed as part of the Government’s wider finance settlement announcements.

Members were made aware that, once the final position for 2024/25 was determined, the remaining years of the forecast would also be revised along with the consideration of extending the forecast period, which would be reported to Members later on in the budget setting process.

It was reported that both Appendices and C included related in-year adjustments for 2023/24. Those would be subject to further review before being finalised for inclusion in the Quarter 3 Financial Performance Report that would be presented to Cabinet later on in the financial year.

In order to set out the latest financial forecast as part of the process of developing the budget proposals for 2024/25:-

It was moved by Councillor M E Stephenson, seconded by Councillor Kotz and:-

RESOLVED that Cabinet -

a)     approves the updated Financial Forecast and proposed budget position for 2024/25 as set out in report A.4 and its appendices; and

b)     requests the Overview and Scrutiny Committees’ comments on this latest financial forecast and proposed budget position for 2024/25.