Decision details

The Cabinet considered a report of the Director of Finance that provided Members with an update, as of 30^th September 2024 (Month 6), of the Council’s 2024/25 forecast revenue budget position (detailed at Annex 1) and the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29 (detailed at Annex 2).

The Cabinet were advised that the forecast overspend position based on the Month 6 profiled budget was £9.956m, which if not addressed, would result in a year-end overspend of £19.912m (£21.065m at Month 4).

This financial monitoring report follows on from the position reported at Month 4 and should continue to be used as a warning of the potential year- end position if no further action is taken to reduce net expenditure. The management actions already implemented for 2024/25 have been factored into the Month 6 forecasts and this has resulted in a reduction in the position previously reported.

Work was ongoing across the organisation to address this position and it was anticipated that by the year end, the current outturn deficit position should reduce even further. An update on the Month 6 2024/25 position was detailed within Annex 1.

In terms of the Capital Position, the report outlined the most up to date capital spending position for 2024/25 to 2028/29 for approved schemes. The revised capital programme budget for 2024/25 is £99.505m at the close of Quarter 2 (£103.935m at Month 4), a net reduction of £4.430m. the actual expenditure to 30^th September 2024 was £31.222m (31.38% of the forecast outturn).

Resolved that the Cabinet:

1.    Notes the report.

2.    Approves the forecast profiled budget, being an adverse position of £9.956m at Quarter 2 and the forecast potential adverse position by year end of £19.912m, with mitigations in place to reduce expenditure.

3.    Approves the revised reserves policy for 2024/25, as detailed at Appendix 2 of Annex 1.

4.    Approves the revised capital programme for 2024/25 including the proposed virements and the forecast for the financial years to 2028/29 as at Quarter 2, as outlined in Annex 2.