Agenda item

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 expected revenue budget efficiency for the year of £1.106m and proposals to earmark this for cost pressures given at Paragraph 4.5 and Table 2 to the report be incorporated into the 2025/26 Medium Term Financial Strategy for Full Council;

b)               the projected capital budget efficiencies of £5.968m including the reprofiling of provisions totalling £3.756m at Paragraph 4.8 and Table 3 to the report; and

c)                the expected balanced outturn position for special expenses at Paragraph 4.6 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 30 June 2024.

In introducing the report, Councillor Virdi confirmed that the report was positive in relation to the general public finances but said that given some of the challenges that had been discussed at recent Cabinet and Council meetings, the Council could not be complacent.

Councillor Virdi provided Cabinet with a breakdown of the report highlights. He noted that the Council had an overall predicted net revenue efficiency of £1.106m, with details of the variances provided in Appendix B. He referred to paragraph 4.4 of the report which set out the main efficiencies arising from investment income, for example interest on income of £250k from Treasury activities and savings on leisure and depot contracts.

In relation to underspends, Councillor Virdi referred to Table 2 of the report which set out where some of the underspends could be used to meet pressures in the budget and support opportunities for economic growth in the Borough. In particular, he noted an allocation towards a proposal to create a West Bridgford Town Centre reserve, which would be taken to Full Council with the intention for it to lever in funding from other avenues. He also noted the Treasury Depreciate Reserve which was to protect against market fluctuations.

In relation to Special Expenses, Councillor Virdi referred to Appendix B which set out a minor overspend.

In relation to the Capital Programme 2024/25, Councillor Virdi referred to Appendix C and D which set out the overall position and noted that the Council had an underspend of £5.968m, of which £3.756 would be rephased to 2025/26, as summarised in Table 3. He said that this left a £2.212m underspend which had in the main arisen from the £1m travellers site reserve which was yet to be allocated and from Rushcliffe Oaks Crematorium and Bingham Arena budget allocations for post opening enhancement works and potential VAT liability.

In conclusion, whilst noting the Council’s healthy financial position, Councillor Virdi said that things could change and there were longer term challenges and as such, the Council was ensuring that it had reserves available to mitigate ongoing risks.

In seconding the recommendation, Councillor J Wheeler said that the report showed how the Council was constantly looking for ways to be as efficient as possible to be able to reinvest money to achieve other priorities. He said that the Council was constantly looking at not just generating income but also in efficiently delivering services. He referred in particular to work carried out in relation to management of contracts for the Leisure Centres and the work of the Communities Teams in improving bookings to make best use of the Council’s facilities. In relation to Edwalton Golf Course, he noted the loss but said that due to bad weather they had experienced flooding but that much hard work had taken place to get the course open as soon was possible and that work was taking place looking at possible mitigation and alleviation measures for the future. He noted also the positive work that had taken place at the course and the Club House to increase income and was confident that it could excel going forward. He summarised that the Council was in a positive position overall.

The Leader thanked Officers for their hard work in looking after the finances of the Council.

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

a)             the expected revenue budget efficiency for the year of £1.106m and proposals to earmark this for cost pressures given at Paragraph 4.5 and Table 2 to the report be incorporated into the 2025/26 Medium Term Financial Strategy for Full Council;

b)             the projected capital budget efficiencies of £5.968m including the reprofiling of provisions totalling £3.756m at Paragraph 4.8 and Table 3 to the report; and

c)             the expected balanced outturn position for special expenses at Paragraph 4.6 of the report.