Decision details

The Cabinet considered a report of the Assistant Director of Finance which  provided members with an update, as at 31^st December 2024 (Quarter 3) of the Council’s 2024/25 forecast revenue budget position (detailed at Annex 1, to the report), alongside the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29 (detailed at Annex 2 to the report).

In terms of the Revenue Budget, the forecast overspend position based on the Quarter 3 profiled budget was £10.634m which if not addressed would result in a year-end overspend of £14.178m (£20.390m at Month 8 (2024/25)). The submitted financial monitoring report followed on from the previously reported positions and warned on the potential year end position if no further action was taken to reduce net expenditure. The management actions already implemented for 2024/25 had been factored into the current forecasts. Work continues 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 Quarter 3 2024/25 position was detailed within Annex 1 to the  report.

Regarding the Capital Budget, he 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 was £87.260m at the close of Quarter 3 (£99.553m at Month 8), a net reduction of £12.293m. Actual expenditure to 31 December 2024 was £53.478m (61.23% of the forecast outturn).

Options/Alternatives considered:

The options that Cabinet could consider in relation to this report were:

a.    To consider the forecast revenue and capital positions presented in the report.

b.    To propose alternative forecasts.

The preferred Option was, to consider the forecast revenue and capital positions presented in the report.

Resolved:

1.    That the Cabinet notes the report.

2.    That the Cabinet approves the forecast profiled budget, being an adverse position of £10.634m at Quarter 3 (December 2024) and the forecast potential adverse position by year end of £14.178m, with mitigations in place to reduce expenditure as detailed at Annex 1, to the report.

3.    That the Cabinet 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 3 as outlined in Annex 2, to the report.