Agenda item

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

It was RESOLVED that:

a)           the 2022/23 revenue position and efficiencies identified in Table 1, the variances in Table 2 (and Appendix A) be noted and the carry forwards and appropriations to reserves in Appendix E be approved;

b)           the other changes to the earmarked reserves as set out at Appendix B be approved;

c)           the re-profiled position on capital be noted and the capital carry forwards outlined in Appendix C and summarised in Appendix F be approved; and

d)           the update on the Special Expenses outturn at paragraph 4.20 and in Appendix D be noted.

The Cabinet Portfolio Holder for Finance, Councillor Virdi presented the report of the Director – Finance and Corporate Services, which outlined the year-end financial outturn position of 2022/23, linked to the closure of the accounts process and previous financial update reports.

In introducing the report, Councillor Virdi referred to his predecessor Councillor Moore, thanked him for his excellent work whilst on Cabinet, and stated that he hoped to continue this work, alongside the Director – Finance and Corporate Services and his team and fellow Councillors.  Cabinet was advised that the overall position was positive, given the ongoing financial challenges being faced by all.  Councillor Virdi advised that unlike many Councils, Rushcliffe had maintained positive budget efficiencies for both revenue and capital.

In respect of revenue, Cabinet noted that there was an efficiency position of just over £2m, which was required for service demands in 2023/24, and to potentially meet other risks, and therefore appropriation to Earmarked Reserves were recommended.  Councillor Virdi referred to the notable variances in the report as detailed in Tables 1 and 2, including the budget variances for revenue and other service related variances respectively.  Appendix C of the report detailed where the carry forwards were required for the appropriation to reserves and where the £2m budget efficiencies were required. 

In respect of capital, Councillor Virdi advised that of the £21m budget, there was an underspend of £5.59m, which was largely due to the delays in opening of the Bingham Arena and the Crematorium.  Details of the capital variances were outlined in Appendix C of the report and Appendix D highlighted the Special Expenses position.

Councillor Virdi stated that the financial impact of inflation had, through prudent budgeting been maintained within existing resources, without the need for any draw on reserves.  Inflation was expected to continue to fall; however, there was no time for complacency, with areas of risk to both Council expenditure and income receipts remaining.  The Council had to be conscious of the need to balance the budget, whilst supporting residents during this difficult time and the Comprehensive Spending Review, together with the delays to both the Business Rates Re-evaluation and the Fairer Funding Reviews added further uncertainty and pressure and made financial planning even more challenging. 

In conclusion, Cabinet was reminded that the Council needed to be properly insulated against such risks, and hence the need to ensure that it had sufficient reserves, as well as having the ability to use those reserves to support projects where there was an upside risk or a change in strategic direction.  The Council continued to ensure that it was financially resilient, and Councillor Virdi advised that he would be working with the Finance team to ensure that carried on.

Councillor Clarke agreed that the report demonstrated that the Council protected taxpayers’ money extremely well on their behalf whilst also providing excellent services, within allocated finances, through prudent management, and thanked officers.

In seconding the recommendation, Councillor J Wheeler reiterated the importance of having prudent financial management and noted that other councils were not in such a good position and had been forced to borrow heavily.  Rushcliffe was able to maintain the lowest Council Tax rates in the county, still invest in facilities for the benefit of residents and meet any challenges that came forward.  Councillor Wheeler thanked officers, Councillor Moore and Councillor Virdi and hoped that this positive situation would continue going forward.

It was RESOLVED that:

a)           the 2022/23 revenue position and efficiencies identified in Table 1, the variances in Table 2 (and Appendix A) be noted and the carry forwards and appropriations to reserves in Appendix E be approved;

b)           the other changes to the earmarked reserves as set out at Appendix B be approved;

c)           the re-profiled position on capital be noted and the capital carry forwards outlined in Appendix C and summarised in Appendix F be approved; and

d)           the update on the Special Expenses outturn at paragraph 4.20 and in Appendix D be noted.