Decision details

RESOLVED:

That the Cabinet:

1.     Note the budget monitoring position and treasury management update as at May 2024 (Month 2), noting the actions proposed by officers as outlined in Part A of this report.

2.     Approve the financial recommendations set out in Part B of the report below:

a)    Approves rephasing of £39,287k 2023/24 General Fund Major Projects, £11,370k from the Programme of Works expenditure, and £10,701k from General Contingency and associated financing budgets into future years.

b)    Approves rephasing of £22,791k 2023/24 HRA capital expenditure and financing budgets into future years as set out in the report.

c)    Agree the request to continue existing operational arrangements with Frankham Group whilst new contracts are agreed and formal governance approved.

d)    Approve acceptance of £2,759k grant funding from the Department of Energy Security and Net Zero Wave 2.2 funding to contribute towards the cost of £17,696k to undertake decarbonisation works in the Council’s Housing properties.

Reasons for decision

The Cabinet Member for Finance presented a more concise and accessible budget monitoring report covering the latest financial forecast for the year. It was noted that at this early stage, forecasting was challenging due to uncrystallised trends in demand and expenditure. Despite this, potential cost increases from growing demand and inflation were highlighted.

The Cabinet Member noted the zero-based budgeting process was nearing completion, with benefits expected to be reflected in later budget reports. The General Fund revenue account was reported to be breaking even against budget, though areas like homelessness support, adult social care, and asylum provision remained potential pressure points. It was noted that general balances and earmarked reserves were projected to total £35 million by the end of the financial year, with an additional £8 million in unutilised capital receipts. The savings program was also outlined by the Cabinet Member, which totalled £21.5 million, with £6.8 million already delivered or nearly completed.

On the General Fund Capital Budget, it was proposed to rephase £39.3 million of unachieved capital expenditure from 2023/24 into the current year’s budget.

Progress was reported on the dedicated schools grant, with cost rationalisation measures reducing the forecast in-year deficit by £9.5 million, though it was noted that a £16.1 million deficit was still projected due to underfunding by central Government. It was noted that the Housing Revenue Account was within budget and the Cabinet Member then moved a number of financial related recommendations related to the rephasing of capital budgets, contracts and the acceptance of grants.

Alternative options considered and rejected

None.