Issue - meetings

To consider the recommendations of the Cabinet in respect of:

·       2024/25 Quarter One Finance update (Cabinet minute 28) (Cabinet agenda item 9)

Consideration was given to the report of the Cabinet which sought approval for the Cabinet’s recommendations.

2024/25 Quarter One Finance update

The Portfolio Holder – Finance presented the report which had been presented and discussed fully at Cabinet.  The following salient points were raised:

·       It was pleasing to see that the report had been published in a timely fashion, allowing members the opportunity to consider the content;

·       This year, like previous years, was challenging – the main issue of concern was the annual pay award which had not yet been announced.  There was a possibility that this may impact on the forecast outturn position, if it was greater than the budgeted 3.5%;

·       The Authority had received the allocation of £335,000 from the Government in respect of the IDB levy pressures for 2024/25 – this had now been embedded within the Q1 forecast and in the efficiencies table.  Whilst the payment was welcome, it did not ultimately resolve the problem and work still needed to be undertaken;

·       General Fund – the revenue outturn forecasted overspend currently for the year end was £67,000 – all officers and Portfolio Holders were looking closely at efficiencies to bring this down.  The overspend was largely coming from areas such as Neighbourhoods, with staffing pressures around the recycling and refuse services:

·       Good returns were being seen on the Council’s investments – the Council was ahead of budget on this;

·       Table 1b illustrated additions to the Revenue Budget – this would be updated throughout the year allowing for things such as Decision Notices and Delegated Decisions;

·       Savings target of £831,000 – to date 55% of this had been achieved;

·       Section 2.3 detailed the HRA revenue budget. Instead of the usual Quarter 1 forecast, the report proposed a budget reset for the Cabinet to consider and refer to Full Council for approval. The HRA revenue budget was under extreme pressure with compounding demands from service pressures, hyperinflation, ageing components, greater publicity of the responsibility of social landlords, and increased reports of Damp, Condensation and Mould. The proposed budget included a net movement of £346,000, resulting in a £192,000 surplus for the year, including an associated reserve withdrawal

DECISION:

That an amended 2024/25 budget for the Housing Revenue Account (HRA), with a surplus of £192,000 including an associated reserve withdrawal be approved, as detailed in Table 3 (Appendix B of the Council report and originally Appendix A to the Cabinet report).