Agenda item

Report covering Quarter 1 (April – June 2024)

The Cabinet considered a report of the Director of Finance providing Cabinet with an update as at 30 June 2024 (Quarter 1) of the Council’s 2024/25 forecast revenue budget position at Annex 1 of the report and the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29 at Annex 2 of the report, and the Outturn position for 2023/24  at Annex 3 of the report.

The forecast overspend position based on the Quarter 1 profiled budget was £6.508m which if not addressed urgently would have a year-end forecast of £26.033m. As this financial monitoring report reflects the financial position at Quarter 1, it could be regarded as an early warning of the potential year- end position if no further action was taken to reduce net expenditure. The management action initiated in 2023/24 across all service areas had continued into 2024/25 and an enhanced programme of mitigations to reduce the in-year pressure had been commenced. Details were included in Annex 1 of the report. Those mitigations had been implemented with immediate effect, and it was anticipated that by the year end, the current outturn deficit position should reduce. Information on the Quarter 1 position of the Dedicated Schools Grant (DSG), and Revenue Funding and Collection Fund was also outlined in the report. An update on the Quarter 1 2024/25 position was detailed within Annex 1 of the report.

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 £101.680m at the close of Quarter 1, a net increase of £1.997m from the original budget approved at Council on 28 February 2024 of £99.683m. Actual expenditure to 30 June 2024 was £11.895m (11.70% of the forecast outturn). It was likely that the forecast position would continue to change throughout the year with additional re-profiling into future years.

The report provided confirmation of the outturn position for 2023/24. The information contained within Annex 3 of the report was reported in the Narrative section of the Council’s draft Statement of Accounts 2023/24 which were published on 7 June 2024 and had been handed over to the Council’s external Auditors Forvis Mazars, LLP.

Options/alternatives considered

Option 1 - To consider the forecast revenue and capital positions presented in the report including proposed changes

Option 2 - To propose alternative forecasts

Resolved -That

1.    Forecast profiled budget, being an adverse position of £6.508m and the forecast potential adverse position by year end of £26.033m, with mitigations in place to reduce expenditure be approved.

2.    The additional working capital provided for Oldham Total Care as detailed in Annex 1 of the report be approved.

3.    Forecast positions for the Dedicated Schools Grant and Revenue Funding and Collection Fund be approved.

4.    Revised capital programme for 2024/25 including the proposed virements and the forecast for the financial years to 2028/29 as at Quarter 1 as outlined in Annex 2 of the report be approved.

5.    The Outturn position for 2023/24 as highlighted in Annex 3 of the report be approved.