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 £2.164m and proposals to earmark this for cost pressures given at Paragraph 4.5 and Table 2 to the report;

b)           the projected capital budget efficiencies of £4.440m including the reprofiling of provisions totalling £0.556m at Paragraph 4.8 and Table 3 to the report; and

c)           the overspend of £46.3k on special expenses at Paragraph 4.6 to 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 2024.

Councillor Virdi stated that whilst the overall position remained positive, financial challenges made it imperative that the Council continued to drive forward improvement and efficiencies and referred to the Extraordinary Council meeting on 20 March 2025, which would discuss Local Government Reorganisation (LGR).

In respect of revenue, Councillor Virdi confirmed that there was a projected net revenue efficiency of £2.164m, which was highlighted at Appendix A to the report, with a summary of the variances detailed in Table 1, Paragraphs 4.3 and 4.4. and Appendix B. The favourable projected budget position allowed the Council to mitigate its risks in this challenging financial environment and carry forward balances to replenish and create new reserves. Table 2 highlighted how the underspend had been used, including £0.2m to enhance the Council’s Organisation Stabilisation Reserve, to mitigate any unforeseen costs related to LGR. Councillor Virdi referred to the overspend on West Bridgford Special Expenses, details of which were highlighted in Paragraph 4.6 and Appendix E.

In respect of the Capital Programme, Councillor Virdi referred to Paragraphs 4.7 to 4.10 and Appendices C and D, which detailed an underspend of £4.440m, with £0.556m rephased into next year, as shown in Table 3, which left £3.884m, with Paragraph 4.9 detailing reasons for the remaining underspend.

Councillor Virdi referred to the Labour Group’s alternative budget discussed at Council, proposing additional funding for Disabled Facilities Grants, and in acknowledging the increased demands, he advised that due to in year efficiencies, a further £0.2m had been allocated, and would be carried forward into 2025/26. Nevertheless, it was felt that a more prudent, longer term, sustainable solution would be required and the Council would continue to lobby Government for additional funding and neighbouring authorities for ways to redistribute funds. Councillor Virdi also advised that in February, a further grant allocation of £113,594 was received, which would also be carried forward. 

Councillor Virdi concluded by stating that whilst the financial position remained healthy, the situation could change quickly, including uncertainty related to LGR; however, the Council’s current reserves remained healthy, allowing it to manage risks and maximise opportunities, whilst continuing to provide excellent services

In seconding the recommendation, Councillor J Wheeler welcomed the Council’s ongoing priority to find efficiencies where possible, whilst delivering excellent services and investing elsewhere. The Council was committed to investing in its Community facilities to improve them for residents and attract more income.

The Leader stated that this report demonstrated how well officers looked after the Council’s finances, to ensure that it could continue to provide great services and keep the Council Tax low.

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

a)           the expected revenue budget efficiency for the year of £2.164m and proposals to earmark this for cost pressures given at Paragraph 4.5 and Table 2 to the report;

b)           the projected capital budget efficiencies of £4.440m including the reprofiling of provisions totalling £0.556m at Paragraph 4.8 and Table 3 to the report; and

c)           the overspend of £46.3k on special expenses at Paragraph 4.6 to the report.