Issue - meetings

Purpose of Report

To present the first quarter’s performance (up to 30 June 2023) on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes, and to seek approval for changes to the capital programmes.

Decision

1.    That the financial performance for the period 1 April 2023 to 30 June 2023 and the projected outturns for 2023/24 be noted.

2.    That the underlying impact of the pressures and underspends identified in paragraphs 3.3 (and Appendix B), 4.3 (and Appendix D), and 5.2 (and Appendix F) of the officer’s report be noted.

3.    That the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs 7.5, and 7.12 of the officer’s report be noted.

4.    That the changes to the Housing Investment Programme, as detailed in paragraph 7.10 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

Financial Procedure Rules required members to receive, on a quarterly basis, a report prepared jointly by the Chief Finance Officer and Corporate Management Team commenting on financial performance to date. This report was designed to meet this requirement.

Whilst there were still a number of variables which were subject to a level of uncertainty, based on the latest set of assumptions as at the end of the first quarter (up to 30th June) the forecast financial position of the Council for 2023/24 was detailed at paragraph 2.2 of the officer’s report, together with the detailed financial position shown in sections 3-7 and the accompanying appendices.

Updates were reported as follows:

General Fund Revenue Account

For 2023/24 the Council’s net General Fund revenue budget was set at £14,402,660 including a planned contribution from balances of £191,110 resulting in an estimated level of general balances at the year-end of £2,228,739 (after allowing for the 2022/23 outturn position).

The General Fund Summary was currently projecting a forecast underspend of £157,137 (Appendix A provided a forecast General Fund Summary), resulting in general balance at the year-end of £2,385,876.

There were a number of forecast year-end variations in income and expenditure against the approved budget, both positive and negative; as detailed at paragraphs 3.3- 3.5 of the report, with the main variances provided in Appendix B to the report.

Whilst the level of uncertainty around inflation pressures was significantly reduced this year due to actions taken in the latest MTFS, there remained uncertainty surrounding pay assumptions and other budgets, particularly in terms of service demands and income forecasts. At quarter one, the potential for further variances during the year remained high, and as such the final outturn position for the year was still subject to further change. At this stage though there were no further mitigations recommended, however, as always, there would continue to be a need for strong budgetary control in this financial year to ensure expenditure and income remained balanced within the budget. 

Towards Financial Sustainability Programme

The savings target included in the MTFS for  ...  view the full minutes text for item 30