Consideration was given to a report of the Director of Finance which provided Cabinet with an update on the Council’s 2022/23 forecast revenue budget position at Annex 1 and the financial position of the capital programme as at 30 September 2022 (Quarter 2) together with the revised capital programme 2022/23 to 2026/27, as outlined in section two of the report at Annex 2.
The current forecast outturn position for 2022/23 was a projected deficit variance of £4.452m after allowing for approved and pending transfers to and from reserves. An operational deficit of £6.172m reduced by £1.720m with the anticipated effect of management actions and strengthened restrictions in relation to expenditure and recruitment.
The position included additional costs and pressures that have been identified by the Authority in this financial year as a direct result of the lasting impact of the COVID-19 pandemic.
There were two areas which continued to endure significant pressures attributed to the ongoing impact of the Pandemic; Community Health & Adult Social Care was reporting an adverse variance of £7.028m and Children’s Social Care was recording £3.961m.
These pressures were being offset against a corporate provision of £12.000m COVID-19 Legacy funding which was set aside during the 2022/23 budget setting process.
An update on the major issues driving the projections was detailed at Annex 1 to the report.
The report outlined the most up to date capital spending position for 2022/23 to 2026/27 for approved schemes. The revised capital programme budget for 2022/23 was £68.318m at the close of Quarter 2, a net decrease of £31.930m from the original budget of £100.248m. Actual expenditure to 30 September 2022 was £18.842m (27.58% of the forecast outturn). Without doubt the forecast position would continue to change throughout the year with additional re-profiling into future years.
RESOLVED – That:
1. The Forecast revenue outturn for 2022/23 at Quarter 2 being a £4.452m adverse variance having regard to the action being taken to manage expenditure be approved.
2. The Forecast positions for both the Housing Revenue Account, Dedicated Schools Grant and Collection Fund be approved
3. The Revised capital programme for 2022/2027 as at Quarter 2 be approved.