Issue - meetings

As detailed in the recommendations.

Councillor Johnson introduced the report which provided Members with the first detailed overview of the budget monitoring position for the 2023/24 financial year for the Council Fund and Housing Revenue Account and presented the position, based on actual income and expenditure as at Month 6.

The projected year end position was as follows:

Council Fund

·         An operating deficit of £3.559m (excluding the impact of the pay award which would need to be met by reserves – currently estimated as £2.727m) which was a favourable movement of £0.101m from the deficit figure reported at Month 5.  It was noted that the financial impact of the recent storm Babet was not currently included in the projection but was expected to be significant

·         A projected contingency reserve available balance as at 31st March 2024 of £3.776m (after the estimated impact of pay awards and taking account of the Balances released to Reserves at Month 5)

Housing Revenue Account

·         Net in-year revenue expenditure was forecast to be (£0.069m) lower than budget which was a favourable movement of (£0.075m) from the figure reported at Month 5

·         A projected closing balance as at 31st March, 2024 of £3.266m

The Corporate Finance Manager explained that the economic outlook remained challenging due to inflation levels remaining high.  The impacts of that, together with continued increases in service demand was becoming increasingly hard to deal with as the Councils funding failed to keep up with the scale of those pressures.  To assist with managing those risks and mitigating the overall projected overspend, a moratorium on non-contractually committed spend had been put in place alongside a vacancy management process which continued.

            In response to a question from Councillor Bithell, the Corporate Finance Manager explained that it was anticipated that costs relating to Storm Babet would be available to report to Cabinet in December.

RESOLVED:

(a)       That the report and the estimated financial impact on the 2023/24 budget be noted; and

(b)       That the change of use for £0.100m of an earmarked reserve for the Carelink service as outlined in the report be approved.