Issue - meetings

(A report by Christine Marshall, Deputy Chief Executive & S151 Officer)

Portfolio Holder: Councillor Sandeep Ghosh

Councillor Sandeep Ghosh presented a report which set out a summary of the current financial position for the Council at the end of the first quarter of 2024/25 forecasting, as at June 2024. Appendix A contained full details in respect of the General Fund Revenue Budget, the General Fund Reserves Position, the Capital Programme for 2024/25, and the Treasury Management Performance for the year.

Attention was drawn to various key points, including the oncoming challenges to be faced due to a downturn in the economy impacting the Council’s income levels in areas such as building control, planning and cremation income. Some of this was being offset by higher than anticipated investment income due to the interest rate levels and increased cash balances. It was also highlighted that the 2024/25 Pay award had not yet been announced and that it would impact the forecast outturn position if it was greater than the budgeted 3.5%.

Councillor Ghosh pointed out Table 4 was a new addition and he advised that future quarterly budget reports would contain illustrating additions to the revenue budget as the year progressed through decision notices and delegated decisions.

Members discussed the report and commented as follows:

·       It was positive to see that the Government had taken note of the financial impact being felt by the Council and that it was responding to the representations by the Special Interest Group with the scheduling of a meeting in October. The Council appreciated the receipt of additional funding in respect of the IDBs and it was important to keep that pressure on the Government.

·       Pensions planning was forecasting a reduction in planning for income; and direct cremation was having an impact on the crematorium income. Commercialisation opportunities were being investigated by various service areas.

·       It was clarified that funding from the transformation reserve would be put towards projects or consultants to bring in efficiency savings.

The recommendations were moved by Councillor Sandeep Ghosh and seconded by Councillor John Baxter.

RESOLVED:

1.     That the forecast revenue position of a £148k underspend for 2024/25, as detailed in Table 1 within the report, and the need for continued focus on the savings and efficiency programme be noted;

2.     That the reserve transfer of £296,307 into the budget, in respect of Project Funding that has been set aside on the balance sheet for that use, be approved;

3.     That the reserve transfer of £260,000, to the Capital Reserve in respect of a VAT refund received in year, be approved; and

4.     That the amendments to the Capital Programme, to take into account the changes set out in Appendix A – Table 5 within the report, be approved.