Issue - meetings

Purpose of Report

To present the provisional 2023/24 financial outturn position on the Council’s revenue and capital budgets, including General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes.

This report provided the Executive with a summary of actual income and expenditure compared to the revised budget and how any surpluses had been allocated to reserves.

Executive should note that the financial outturn was still subject to Audit by KPMG, the Council’s external auditors.

Decision

1.             That the provisional 2023/24 financial outturn for the General Fund, Housing Revenue Account (HRA), Housing Repairs Service and Capital Programmes as set out in sections 3-7 of the officer’s report, and in particular the reasons for any variances, be noted.

2.             That the General Fund carry forward requests as detailed in paragraph 3.7 of the officer’s report be approved.

3.             That the proposed transfer to General Fund and HRA earmarked reserves as detailed in paragraphs 3.8 and 4.7 of the officer’s report be noted.

4.            That the financial changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer detailed in paragraphs, 7.6, and 7.13 of the officer’s report be noted.

5.            That the financial changes to the General Investment Programme and the Housing Investment Programme that were above the limit delegated to the Chief Finance Officer, as detailed in paragraphs 7.5, 7.11 and 7.12 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

During the last quarter of 2023/24, the position on the General Fund, Housing Revenue Account and Housing Repairs Service had remained positive with budget surpluses achieved across both the General Fund and HRA at the end of the financial year.

Despite this positive outturn position the Council continued to face escalating cost pressures, above those already factored into the MTFS. The positive outturn in 2023/24 had been largely driven by investment income with interest rates continuing above the levels assumed within the MTFS, with other overachieved income in the General Fund. This would not be the case in 2024/25 with budgets adjusted to reflect the base rate forecast, as such strong financial discipline and delivery of the significant savings targets underpinning the MTFS would remain critical in ensuring the Council maintained a sustainable financial position in the medium term.

A summary of the financial position of the Council for the financial year 2023/24 was outlined at paragraph 2.4 of the officer’s report, together with the detailed financial position shown in sections 3-7 and accompanying appendices to the officer’s report.

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 to 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 financial performance quarterly monitoring report for the 3rd quarter predicted an underspend against the revised budget of £476,652 (before additional transfers to earmarked reserves and carry forward  ...  view the full minutes text for item 5