Purpose of the report
The report provided the Cabinet with an update, as at 31st July 2024 (Month 4), of the Council’s 2024/25 forecast revenue budget position and the financial position of the capital programme together with the revised capital programme 2024/25 to 2028/29.
Reasons for the Recommendations
a. Revenue Position
The forecast overspend position based on the Month 4 profiled budget was £7.202m which if not addressed would result in a year-end overspend of £21.065m (£26.033m at month 3). This financial monitoring report followed on from the position reported at Month 3 and was considered a warning of the potential year-end position if no further action was taken to reduce net expenditure. The management actions already implemented for 2024/25 have been factored into the Month 4 forecasts and this has resulted in a reduction in the position previously reported. Work continues across the organisation to address this position and it is anticipated that by the year end, the current outturn deficit position should reduce even further.
b. Capital Position
The submitted 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 £103.935m at the close of month 4 (£101.680m at Month 3), a net increase of £2.255m. Actual expenditure to 31 July 2024 was £17.397m (16.74% of the forecast outturn). It was likely that the forecast position will continue to change throughout the year with additional re-profiling into future years.
Options/Alternatives
The options that Cabinet considered in relation to the submitted report were:
a. To consider the forecast revenue and capital positions presented in the report including proposed changes.
b. To propose alternative forecast
The preferred option was that the Cabinet Committee considers the forecasts and changes within this report; option (a).
Decisions:
1. Cabinet notes the contents of the report.
2. Cabinet approves forecast profiled budget, being an adverse position of £7.202m at Month 4 and the forecast potential adverse position by year end of £21.065m, with mitigations in place to reduce expenditure.
3. 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 4.