Issue - meetings

The Leader of the Council presented the report, which provided the first monitoring report of the current financial year. Further updates would be provided throughout the year to monitor how the Council could proceed against the budget.

The report included a risk register which contained the biggest risks facing the Council in respect of future funding levels in the ongoing challenges of funding the backlog of maintenance.

It was hoped the multi-year financial settlement would be forthcoming with the new Government, in order for the Council to make credible and sensible long-term investment decisions.

The Leader of the Council had no specific concerns at present in relation to the rest of the financial year.

Cabinet had previously approved the acceptance of the Homelessness and New Burdens Grant of £268,000.

It was expected a government spending review would take place in March/April 2025 with an expectation to set a three-year budgets going forward. It was further expected a one-year settlement would be provided for the 2025/26 financial year.

Members urged the new Government to provide fairer funding for rural authorities. It was noted that social deprivation in rural areas seemed to be overlooked by Central Government.

A query was raised on whether the increase of energy costs would affect the Council and whether mitigations had been put into place. 

Interest rates were forecast to come down in the short-medium. Assurance was sought on how the interest rate levels would affect investment income.

The Council had a conservative estimate of investment income not assuming that interest rates would reduce.

The increase in energy prices and energy caps was aimed at domestic energy users rather than commercial energy use. The Council were part of the ESPO framework for energy purchases, therefore, the Council were in a 6-month stability period for energy costs for the Council and Leisure SK Ltd.

The Council were actively securing medium term investments in line with the possible decrease in interest rates.

The Deputy Chief Executive outlined costs of incurred from the Drainage Board levy, which saw a £29,000 increase in the levy charges received when compared with the budgets prepared for 2025/26. A windfall payment from Government of £50,000 had been received in order to assist those Council’s which were faced with Drainage Board levies.

Collection rates for the first four months of 2024 had been included within the report. Members were assured collection rates were being maintained within targets for business rates, council tax and housing rents.

It was noted Government may divert funds from wealthier to less wealthy local authorities, it was queried how the Council would rate in terms of perceived wealth by the Government.

The Government would use their specific metrics to make an assessment on perceived wealth of a local authority.

That the Committee:

1. Reviews and notes the forecast 2024/25 outturn position for the General Fund and HRA Revenue and Capital budgets and identifies any variances that might require action or further investigation.

2. Notes the increase of the Homelessness expenditure and  ...  view the full minutes text for item 36

To present the Council’s year end forecast for the financial year 2024/25 as at the end of July. The report covers the General Fund Revenue Budget, the Housing Revenue Account Budget, and the Capital Programmes for the General Fund and Housing Revenue Account.

Purpose of report

To present the Council’s year end forecast for the financial year 2024/25 as at the end of July. The report covered the General Fund Revenue Budget, the Housing Revenue Account Budget, and the Capital Programmes for the General Fund and Housing Revenue Account.

Decision

Cabinet:

1.    Reviewed and noted the forecast 2024/25 outturn position for the General Fund and HRA Revenue and Capital budgets and identifies any variances that might require action or further investigation.

2.    Accepts the additional grant income totalling £268k and approves the increase of the Homelessness expenditure and income budgets to reflect the receipt of these additional monies.

Alternative options considered and rejected

This was a monitoring report, therefore there were no other options considered.

Reasons for decision

Members should be kept updated on the financial position of the Authority, because effective budget management was critical to ensuring financial resources were targeted towards the Council’s priorities. Monitoring enabled early identification of variations against the plan and facilitated timely corrective action.

This report provided an overview of the forecast 2024/25 financial position for the Council and focused on the position as at the end of July 2024.

The same report would be presented to the Finance and Economic Overview and Scrutiny meeting held on 17 September 2024, and any comments or observations from that Committee would be welcomed.

Currently, the Council received an annual financial settlement from central government. It was hoped this would change in future years to enable officers more time to provide a balanced budget for the February meeting of Full Council.

No specific issues had been identified within the update report, but the increase in available budget for homelessness was welcomed.