Decision details

The Cabinet considered a report of the Assistant Director of Finance that provided Members with an update, as at 31^st January 2025 (Month 10), of the Council’s 2024/25 forecast revenue budget position (detailed at Annex 1) alongside the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29 (detailed at Annex 2).

In terms of the revenue position the forecast overspend position based on the Month 10 profiled budget was £12.164m which, if not addressed, would result in a year-end overspend of £14.597m (£14.178m at Month 9). This financial monitoring report followed on from the previously reported positions and detailed 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 and have had a positive impact on the adverse position from that reported at Quarter 1 (£26.033m). Work continued across the organisation to address this position and reduce this position even further.

An update on the Month 10 2024/25 position was detailed within Annex 1. Information on the forecast year end position of the Dedicated Schools Grant (DSG), and Collection Fund were also outlined in the submitted report.

In term of the capital position, the report outlined the most up to date information for 2024/25 to 2029/30 for approved schemes. The revised capital programme budget for 2024/25 was £87.460m at the close of Month 10 (£87.260m at Month 9), a net increase of £0.200m. The actual expenditure to 31^st January 2025 was £59.145m (67.63% of the forecast outturn).

Options/alternatives considered:

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

b.    To propose alternative forecasts.

The preferred option was ‘a.’ above.

Resolved that the Cabinet:

1.    Notes the contents of the report.

2.    Approves forecast profiled budget, being an adverse position of £12.164m at Month 10 and the forecast potential adverse position by year end of £14.597m, with mitigations in place to reduce expenditure as detailed at Annex 1.

3.    Approves the use of general earmarked reserves to fund any year end revenue overspend for 2024/25.

4.    Notes the forecast positions for the Dedicated Schools Grant and Collection Fund.

5.    Approves the revised capital programme for 2024/25 including the proposed virements and the forecast for the financial years to 2029/30 as at Month 10 as outlined in Annex 2 to the report.