To provide an overview of the financial outturn for 2024/25 and to seek approval of the allocation of the overall 2024/25 General Fund revenue variance along with a number of proposed budget adjustments in 2025/26.

RESOLVED that -

(a)     the high-level Financial Outturn Position, as set out in this report (A.5), and the favourable General Fund Revenue variance of £5.417m for the year, which is currently held within the Revenue Commitments Reserve be noted;

(b)     the use of the General Fund Outturn for the Year of £5.417m, as set out in Appendix A (Section 1), be approved;

(c)     in respect of the additional £1.000m set aside to support the delivery of savings / efficiency plans and wider corporate priorities, the Chief Executive, in consultation with the Portfolio Holder for Corporate Finance and Governance, be authorised to utilise this funding during the year;

(d)     in respect of the additional £1.000m set aside for Coast Protection Works, this be added to the remaining budget of £0.970m associated with earlier decisions, and that the Corporate Director (Operations and Delivery), in consultation with the Portfolio Holder for the Environment & ICT, be authorised to utilise this funding during the year;

(e)     the budget adjustments for 2025/26, as set out in Appendix A (Sections 2 and 3), be approved;

(f)       the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, be authorised to adjust the outturn position for 2024/25 along with any corresponding adjustment to earmarked reserves as a direct result of any recommendations made by the Council’s External Auditor during the course of their audit activities relating to the Council’s 2024/25 accounts; and

(g)     Officers, in consultation with the Portfolio Holder for Housing and Planning, be requested to continue to explore opportunities to support the Council in addressing the increasing financial challenge associated with the demand for homelessness / temporary accommodation, and to present reports to future meetings of Cabinet, including the potential options associated with the possible levying of charges, balanced against various issues such as the circumstances of those seeking support.

Cabinet considered a report of the Corporate Finance & Governance Portfolio Holder (A.5) which provided it with an overview of the financial outturn for 2024/25 and sought its approval of the allocation of the overall 2024/25 General Fund revenue variance along with a number of proposed budget adjustments in 2025/26.

Cabinet recalled that the Portfolio Holder for Corporate Finance and Governance had agreed the overall financial outturn position for 2024/25 on 27 June 2025, with a high-level summary of the General Fund revenue position set out below.

Some key highlights of the report submitted to the Portfolio Holder had included:-

1)       the favourable variance for the year of £5.417m was currently being held in the Revenue Commitments Reserve;

2)       revenue carry forwards totalling £15.093m had been agreed;

3)       a number of recommendations to Cabinet relating to the potential allocation of the variance of £5.417m highlighted in the table above;

4)       strong, effective and proactive financial management continued to influence the outturn position each year. Set against this approach, the comprehensive reviews as part of the quarterly financial performance reports during the year had provided timely opportunities to reflect on issues affecting the Council’s general financial position in 2024/25. The majority of budget areas had therefore performed to this adjusted position, with only a limited number of variances being highlighted at the end of the year, with many of the items relating to issues highlighted / discussed during the year rather than new items emerging.

It was reported that the Council’s overall general fund reserves totalled £38.194m on 31 March 2025 (excluding the General Fund outturn variance of £5.417m for 2024/25). However, £34.194m was in respect of earmarked reserves, which related to future year’s commitments (including the proposed 2024/25 carry forwards). Earmarked reserves therefore predominantly reflected previously identified priorities of the Council. The balance of £4.000m was the recommended level of uncommitted reserves, which included a ‘working balance’ that formed part of the Council’s treasury management processes. The total earmarked reserves also included the balance on the Forecast Risk Fund of £6.415m, which was in-line with the previously agreed amount that remained available to support the Council’s financial plans in future years.

In respect of the Housing Revenue Account (HRA), Cabinet was informed that the outturn position for 2024/25 reflected an increased overall surplus of £0.745m (from £0.418m), that had been transferred to general balances to support the HRA in future years. The HRA general balance at the end of 2024/25 totalled £4.052m.

This report also provided a timely opportunity to briefly reflect on the in-year position for 2025/26, with some further proposed adjustments set out within Appendix A (Sections 2 and 3) to the Portfolio Holder’s report (A.5).

The recommendations set out within the Portfolio Holder’s report (A.5) set out a number of delegations associated with the delivery / implementation of the various items agreed within Appendix A as necessary, along with a recommendation emerging from the work undertaken to date by the Homelessness and Temporary Accommodation Working Group led by the Portfolio Holder for Housing and Planning.

As set out in previous financial performance reports, and like many Local Authorities up and down the Country, the Council faced on-going financial challenges and uncertainties, which included the potential impact of the Government’s ‘fair funding review’ and ‘business rates reset’ that would become clearer over the coming months. As discussed in earlier reports, the financial forecast would be subject to updates throughout 2025/26 and would need to reflect new / emerging issues along with any significant changes to issues already identified. In respect of the latter, the budget for 2025/26 and future forecasts would need to be reviewed in light of the outturn position for 2024/25.

Having duly considered and noted the financial outturn position for 2024/25 and to allocate the overall General Fund favourable outturn variance for 2024/25 and to agree a number of proposed budget adjustments in 2025/26:-

It was moved by Councillor I J Henderson, seconded by Councillor Barry and:-

RESOLVED that -

(a)     the high-level Financial Outturn Position, as set out in this report (A.5), and the favourable General Fund Revenue variance of £5.417m for the year, which is currently held within the Revenue Commitments Reserve be noted;

(b)     the use of the General Fund Outturn for the Year of £5.417m, as set out in Appendix A (Section 1), be approved;

(c)     in respect of the additional £1.000m set aside to support the delivery of savings / efficiency plans and wider corporate priorities, the Chief Executive, in consultation with the Portfolio Holder for Corporate Finance and Governance, be authorised to utilise this funding during the year;

(d)     in respect of the additional £1.000m set aside for Coast Protection Works, this be added to the remaining budget of £0.970m associated with earlier decisions, and that the Corporate Director (Operations and Delivery), in consultation with the Portfolio Holder for the Environment & ICT, be authorised to utilise this funding during the year;

(e)     the budget adjustments for 2025/26, as set out in Appendix A (Sections 2 and 3), be approved;

(f)       the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, be authorised to adjust the outturn position for 2024/25 along with any corresponding adjustment to earmarked reserves as a direct result of any recommendations made by the Council’s External Auditor during the course of their audit activities relating to the Council’s 2024/25 accounts; and

(g)     Officers, in consultation with the Portfolio Holder for Housing and Planning, be requested to continue to explore opportunities to support the Council in addressing the increasing financial challenge associated with the demand for homelessness / temporary accommodation, and to present reports to future meetings of Cabinet, including the potential options associated with the possible levying of charges, balanced against various issues such as the circumstances of those seeking support.