Issue - meetings
2024/25 Quarter Two Finance update
Meeting: 18/12/2024 - Cabinet (Item 53)
53 2024/25 Quarter Two Finance update 
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To set out the current financial position for the Council at the end of the second quarter of 2024/25 (report of the Deputy Chief Executive – Corporate (S151) enclosed).
Additional documents:
Minutes:
Consideration was given to the report of the Deputy Chief Executive – Corporate (S151) which set out the current financial position for the Council at the end of the second quarter of 2024/25.
The Portfolio Holder for Finance introduced the report, and the following issues were raised:
· It was noted that bank charges were £10,000 over budget – what was the reason for this?
- The Portfolio Holder responded by providing a summary of the situations where bank charges were made. The budget had been set with an anticipation of what charges were likely to be however, this was based on a certain volume which could change.
· Table 1 showed the following points:
i. A considerable overspend on agency staffing – what was being done to mitigate this situation?
ii. Savings achieved by an underspend in vacant posts which could be seen under a number of headings, and a slippage on capital expenditure. Were these related? It was considered a concerning trend bearing in mind the difficulties in recruitment to local authorities generally, and that the Authority was operating at a staffing level of 6% lower than it had budgeted for.
- The Deputy Chief Executive – Corporate responded that with regard to the cost of agency staffing, this had been as a result of a unique set of circumstances this year. Efforts were being made to mitigate the use of agency staff going forward and it was expected that this situation would be improved in 2025/26.
- With regard to the second point, she clarified that there was no direct correlation between the vacancy levels and capital expenditure. There were some staffing vacancies within departments such as the Planning and Governance teams however, capital expenditure was supported by resources elsewhere e.g. Housing and the leisure project.
- With regard to savings showing against the savings target, the majority of these were shown where there was more sharing of resources and this was a reflection of the permanent potential of shared resources. The savings currently built into the budget were 4% and in 2025/26 would exclude areas such as waste.
· With regard to the savings target, achievement of a 100% efficiency target was assumed – how certain was this?
- There had been an intention to address savings at the start of the year - progress was being made with these and services were continuing to work towards achieving them.
DECISION:
1) That the forecast revenue position of a £214k underspend for 2024/25 as detailed in Table 1 and the need for a continued focus on the savings and efficiency programme, be noted.
2) That the forecast revenue position of the HRA for 2024/25 (surplus of £199,000) as detailed in Table 2, be noted.
3) That the amendments to the Capital Programme at Appendix A – Table 4 be approved to take into account the changes set out in the report.
4) That the amendments to the HRA Capital Programme at Appendix A – Table 5 be approved to take into account the changes set ... view the full minutes text for item 53