Agenda item

Purpose of Report

To present the provisional 2024/25 financial outturn position on the Council’s revenue and capital budgets, including the 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 2024/25 financial outturn for the General Fund, Housing Revenue Account (HRA), Housing Repairs Service (HRS) 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 and transfers to earmarked reserves as detailed in paragraphs 3.10 and 3.11 of the officer’s report be approved.

3.             That the HRA carry forward requests and transfers to earmarked reserves, and the Major Repairs reserve detailed in paragraph 4.8 and 4.9 of the officer’s report 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 the Housing Investment Programme, having already received Executive approval detailed in paragraphs 7.3 and 7.11 of the officer’s report be noted.

6.            That the 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, 7.12 and 7.13 of the officer’s report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

During the last quarter of 2024/25, the position on the General Fund, Housing Revenue Account and Housing Repairs Service had remained positive with budget surpluses/additional contributions to reserves 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 in future years, above those already factored into the Medium Term Financial Strategy (MTFS). The positive outturn in 2024/25 had been largely driven by reduced borrowing costs and investment income with interest rates continuing above the levels assumed within the MTFS, alongside other overachieved income in the General Fund, predominantly car parking and property rental income. This would not be the case in 2025/26 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 2024/25 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, covering the following areas:

·       General Fund Revenue Account

·       Carry Forward Requests

·       Transfers to Reserves

·       Towards Financial Sustainability Programme

·       Housing Revenue Account

·       Carry Forward Requests

·       Transfers to Reserves

·       Housing Repairs Service

·       Earmarked Reserves

·       Capital Programme

·       General Fund Investment Programme

·       Housing Investment Programme