Issue - meetings

Purpose of Report

To present the third quarter’s performance (up to 31 December 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 31 December 2023 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 proposed carry forward requests and transfers to earmarked reserves detailed in paragraph 3.8 and 3.9 be approved;

4.    That the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs 7.6 and 7.14 of the officer’s report be noted.

5.    That the changes to the General Investment Programme and Housing Investment Programme, as detailed in paragraphs 7.3, 7.4, 7.5, 7.11 and 7.12 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 third quarter (up to 31 December 2023), 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 which included 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 £289,602 (Appendix A provided a forecast General Fund Summary) resulting in general balances at the year-end of £2,518,341. This position maintained balances above the prudent minimum of c.£1.5-2m.

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

The cost pressures in relation to the pay award were unavoidable, and the levels of income in relation to development in the city were primarily driven by economic factors, both of which had required the resetting of budgets as part of the MTFS. However, in relation to the increasing cost of housing benefits which the Council was bearing the Corporate Management Team had commissioned a range of responses, these would focus on both manging the demand for temporary accommodation as well as exploring options to increase the supply of  ...  view the full minutes text for item 86