Agenda item

An update on the Council’s 2024/25 forecast revenue budget position and an update on the Medium Term Financial position, alongside the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29.

The Cabinet considered a report of the Director of Finance, which provided Members with an update, as at 30^th November 2024 (Month 8), of the Council’s 2024/25 forecast revenue budget position and an update on the Medium Term Financial position (as outlined 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 (as outlined at Annex 2 to the report).

The forecast overspend position based on the Month 8 profiled budget was £13.594m which if not addressed would result in a year-end overspend of £20.390m (£19.912m at month 6).

This financial monitoring report followed on from the position reported at month 6 and is 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 8 forecasts. Work continued 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.

As part of its budget setting process, the Council annually updates its Medium-Term Financial Plan.

It was proposed that the Council seeks external support through a strategic partner to help complete a sophisticated and detailed review that would underpin the comprehensive work needed to support sustainable service reductions and better outcomes over the medium to long term. It was also proposed that Delegated Authority be granted to the Deputy Chief Executive for Health and Care, in conjunction with the Director of Finance to progress the procurement to support this work.

The report outlines 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 £99.553m at the close of month 8 (£99.505m at month 6), a net increase of £0.047m. Actual expenditure to 30 November 2024 was £46.557m (46.77% of the forecast outturn).

Options/Alternatives considered:

The options that the Cabinet considered were:

a.    To consider the forecast revenue and capital positions presented in the report, including proposed changes and an update on the Medium-Term Financial Plan for the period 2025/26 to 2029/30.

b.    To propose alternative forecasts.

The preferred Option was Option a.

Resolved:

1.    That the Cabinet notes the report.

2.    That the Cabinet approves forecast profiled budget, being an adverse position of £13.594m, at Month 8 (30^th November 2024) and the forecast potential adverse position by year end of £20.390m, with mitigations in place to reduce expenditure, as detailed at Annex 1 to the report.

3.    That the Cabinet notes the Medium-Term Financial Plan update for the period 2025/26 to 2029/30 included within Section 7, of Annex 1 to the report.

4.    That the Cabinet approves the delegation of authority to the Deputy Chief Executive for Health and Care, in conjunction with the Director of Finance, to progress the procurement of an external strategic partner to support the work around transformation across three key areas.

5.    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 Month 8 as outlined in Annex 2, to the report.