Issue - meetings

The report of the Director – Finance and Corporate Services is attached.

It was RESOLVED that the report be approved, and the following be noted:

a)                   the projected revenue budget efficiency for the year of £0.665m and proposals to transfer to reserves, as referred to in Paragraph 4.1 of the report;

b)                   the projected capital budget efficiencies of £3.880m including carry forwards of £0.430m to 2024/25, as referred to in Paragraph 4.7 of the report; and

c)                   the projected outturn position of £2.3k underspend for Special Expenses, as referred to in Paragraph 4.5 of the report.

The Cabinet Portfolio Holder for Finance, Transformation and Governance, Councillor Virdi presented the report of the Director – Finance and Corporate Services, which set out the budget position for revenue and capital as at 31 December 2023. 

Councillor Virdi stated that given the various financial challenges, which the Council continued to face, the overall position was positive.  Cabinet was reminded that wider economic risks still prevailed, and whilst the position remained fragile, it was noted that the report had been considered by the Corporate Overview Group, with no significant issues arising.

In respect of revenue, Councillor Virdi confirmed that there was an overall revenue budget efficiency of £0.665m, which was largely due to a Business Rates Pool surplus, as detailed in Appendix A to the report.  Cabinet noted that there were both adverse and positive variances, which were highlighted in Paragraph 4.3 of the report.  Councillor Virdi reminded Cabinet that pay and inflationary pressures remained, together with other pressures referred to at Council last week, which were detailed in Paragraphs 4.9 and 4.10. 

In respect of capital, Councillor Virdi stated that Paragraph 4.7 and Table 2 of the report focused on the key variances and carry forwards requested.  There was an estimated underspend of £3.880m out of a budget of £12.417m, including £7.068m in relation to rephasing of schemes.  Councillor Virdi advised that there was a remaining £3.450m underspend, which as previously discussed was mainly due to timing, and most of the funds were committed, as detailed in Paragraph 4.7.

In relation to Special Expenses, Councillor Virdi referred to Paragraph 4.5 and Appendix E to the report, which highlighted a slight budget efficiency of £2.3k.

Councillor Virdi concluded by reminding Cabinet that the economic climate remained challenging, and it was therefore imperative to keep a tight rein on the budget and not be complacent, to ensure that the Council continued to have the resources to deliver its Corporate Priorities and excellent value for money for residents.

In seconding the recommendation, Councillor J Wheeler stated the importance of remaining prudent during such uncertain times.  He stated that in respect of variances, it was very hard to predict what would happen throughout the year, although it was important to remember that the budget process was thoroughly scrutinised.

The Leader referred to the capital underspend and reiterated that this was simple a question of timing and the funds would be spent going forward.

It was RESOLVED that the report be approved, and the following be noted:

a)                   the projected revenue budget efficiency for the year of £0.665m and proposals to transfer to reserves, as referred to in Paragraph 4.1 of the report;

b)                   the projected capital budget efficiencies of £3.880m including carry forwards of £0.430m to 2024/25, as referred to in Paragraph 4.7 of the report; and

c)                   the projected outturn position of £2.3k underspend for Special Expenses, as referred to in Paragraph 4.5 of the report.