Agenda item

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Report of Chief Finance Officer

(Cabinet Member with Special Responsibility Councillor Hamilton-Cox)

Cabinet received a report from the Chief Finance Officer that provided summary information regarding the provisional outturn for 2023/24, including treasury management. It also set out information regarding the carry forward of capital slippage and other matters for Members’ consideration.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The Council has a legal requirement to ensure that its expenditure is fully funded and to produce accounts in accordance with proper accounting practice. In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework. For these aspects, therefore, there are no alternative options for Cabinet to consider. Members are being asked to endorse certain actions taken by the Chief Finance Officer, and Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification.

The report requests Cabinet to consider a number of revenue overspending, capital slippage and other budget adjustment matters. The framework for considering these is set out in the report but basically Cabinet may:

· Endorse any number of the items / requests, in full or part

· Refuse various requests and if commitments have already been incurred,   require alternative funding options to be identified. Cabinet should note, however, that this may impact on other areas of service delivery

· Request further information regarding them, if appropriate.

The Officer preferred options are as set out in the recommendations, on the assumption that Members continue to support their previously approved spending plans.

Although both the General Fund and Housing Revenue Account were able to respond to the financial challenges in 2023/24 and maintain balanced budget positions by utilising its reserves, this does not mean that the financial issues for the Council are resolved, it simply means that the in-year budget pressures were addressed. To put into context, a budget gap of £1.4M is still forecast for 2025/26 and this rises annually to £4.6M in 2028/29 for which the cumulative effect is not sustainable.

The Council has embarked on a programme called Outcomes-Based Resourcing (OBR)/Fit for the Future (FftF) that will see it examine every area of its budget and match resources more closely with its priorities. The OBR/FftF programme includes looking at ways the council can do things differently by utilising technology and being more efficient, as well as considering areas in which it can generate more income.

Given the size of the ongoing financial issues the Council faces this fundamental reshaping of the Council’s services and realigning against its priorities through the OBR/FftF process will be key to shrinking the estimated budget gap and securing the financial sustainability of the Council going forward. It is imperative that the work, or similar principles continues. The application of OBR/FftF across the Council will be a significant piece of work and to fully achieve its stated aims will take an estimated further 12 to 24 months.

Cabinet and Senior Leadership Team have agreed on principles and common goals as they continue to work through the OBR/FftF process.

· We need to continue tackle the structural deficit over the short medium and long term · We need to use reserves carefully to transition

· We want to continue to deliver services that residents/ businesses need and rely on · We want to achieve positive outcomes for our district

However, if these are not successful and the deficit is not closed, then balances will be required to make up the difference.

Councillor Hamilton-Cox proposed, seconded by Councillor Wood:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That the provisional outturn for 2023/24 be endorsed, including the transfers to and from Reserves and Balances actioned by the Chief Finance Officer as set out in 5.1 and Appendix 5 to the report.

(2)        That Cabinet approves the treatment of year end overspends and endorse the do-nothing approach in-light of the current situation.

(3)        That Cabinet note and endorse the ongoing projects funded by reserves set out at Appendices 5a and 6 to the report.

(4)        That the requests for capital slippage and the adjustments to reflect accelerated capital spending on projects as set out at Appendices 7 and 8 to the report be endorsed, with the Capital Programme being updated accordingly.

(5)        That the Annual Treasury Management report and Prudential Indicators as set out at Appendix 2 to the report be noted and referred on to Budget & Performance Panel and Council for information.

Officer responsible for effecting the decision:

Chief Finance Office

Reasons for making the decision:

The Outturn and Statement of Accounts report on all the financial resources generated and/or used by the Council in providing services or undertaking other activities under the Policy Framework.