Agenda item

To receive a report from the Deputy Chief Executive (S151) on the 2023/24 Revenue and Capital Outturn report.

Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer on 2023/24 Revenue and Capital Outturn report.

The Cabinet Member for Finance outlined the contents of the report with particular reference to the following:

·         In February 2023, a budget was set that required £400k of staffing savings to be identified and £625k to be taken from reserves to balance the budget. Over 1m was required to be saved in-year to avoid reducing reserves below the recommended minimum level.

·         As part of the 2023 budget decision, 3Rivers were left without an approved business plan, restricted from undertaking new projects in significant financial losses; this was unaddressed in the budget this administration inherited.

·         The subsequent decision to soft close the business, all assets had been sold and the final losses of £3.384m had been crystallised, with a further £1.483m impairment required. Combined, these challenges sum to over £2.5m.

·         The Outturn position for the General Fund presented was an over spend of £635k which was directly attributable to the exceptional cost of closing 3 Rivers and the final impairment.

·         Nearly £1.9m had been saved in year to avoid significantly depleting the Councils reserves, savings delivered since this Liberal Democrat administration.

·         Significantly reduced staffing costs capitalising on staff turnover and sickness to review staffing levels, reduce reliance on agency staff and deliver the staff saving target.

·         The Housing Revenue Account (HRA) (in full) underspend of £393k similarly reflected underspends on salaries, lower maintenance spend, increased income across rent and investments led to a reduction in bad debt provision.

RESOLVED that:

1.    Cabinet NOTED the General Fund Outturn achieved in 2023/24 which requires no draw from the General Fund balance, but requires a transfer of £635k (4.05% on the Net Cost of Services Budget) from the New Homes Bonus reserve and the Housing Revenue Account which shows an under spend of £393k (3.28% on the Total Direct Expenditure Budget).

2.    Cabinet NOTED the overarching General Fund budgetary savings delivered of £1,873k in order to mitigate the £2,508k exceptional cost pressures shown in paragraphs 1.3 and 1.4.

3.    Cabinet APPROVED the transfer of the £393k Housing Revenue Account surplus to the ring-fenced HRA Earmarked Reserves as detailed in the HRA Budget Variance Report shown in Appendix 2 and summarised in Appendix 3.

4.    Cabinet APPROVED the Net Transfers from Earmarked Reserves of £1,532k detailed in the General Fund Service Budget Variance Reports shown in Appendix 1a and 1b and summarised in Appendix 3.

5.    Cabinet APPROVED the slippage of £28,441k from the 2023/24 Capital Programme to be delivered in 2024/25 or later years.

6.    Cabinet NOTED the procurement waivers used in Quarter 4 of 2023/24, as outlined in Section 7.

(Proposed by Cllr J Buczkowski and seconded by Cllr L Taylor)

Note: * Report previously circulated

Reason for Decision:

Good financial management and administration underpinned the entire document. A surplus or deficit on the Revenue Budget would impact on the Council’s General Fund balances. The Council’s financial position was constantly reviewed to ensure its continued financial health.