Agenda item

To receive a report from the Deputy Chief Executive (S151). The Local Government Finance Act 1992 places a legal requirement on the Council to approve a balanced budget. The first draft of the General Fund budget for 2023/24 indicated a deficit of £960k. This report updates that deficit to the current position of £905k and proposes options to consider to achieve the statutorily required neutrality.

The Group had before it, and NOTED, a report * from the Deputy Chief Executive (S151). This report updates the General Fund deficit to the current position of £905k and proposes options to consider to achieve the statutorily required neutrality. The HRA Budget position shows a balanced position for 2023/24 and a reduced shortfall across the remainder of the MTFP.

Key highlights within the report were as follows:

·         The services reporting to this committee have small budgets that are largely funding through external funding, thereby making the identification of savings difficult.

·         The draft budget still had a residual gap with inflation, not grant cuts, being the chief cause.

·         Other influencing factors included the rise in energy costs, a rise in pay and pension contributions and slightly lower Council Tax income due to the loss of any surpluses.

·         Towns and Parish Council’s had been approached to discuss options for financial support towards service provision, however, there had not been a great deal of response so far.

·         Pay assumptions had been reviewed as had Business Rate income and the Asset Management Programme.

·         The turnover of staff and vacancy assessment. A robust process was in place to assess each vacant post in terms of income generating opportunities and health and safety risks.

·         Some areas of the Council’s activity needed to be topped up going forwards such as providing sufficient budget for Planning Appeals.

·         The outcome of 3 Rivers Ltd was not yet known.

·         The Housing Revenue Account (HRA) was currently showing a balanced position, with below inflation assumptions for Rental Income and a significant plan for housing development.

Discussion took place with regard to:

·         More detail was requested regarded the housing development programme. It was confirmed that this would be included within a Housing Strategy update report to be presented to the next meeting but a firmer idea of the HRA budget for next year was needed first.

·         Opportunities for income generation existed within the HRA, particularly within the Repairs and Maintenance area.

·         Opportunities to develop old garages into housing units.

Note: * Report previously circulated; copy attached to the signed minutes.