Decision details

RESOLVED:

That the Cabinet:

1.    Note the latest forecast outturn position for both the General Fund and HRA 2024/25 revenue and capital budgets;

2.    Approve the list of revised fees and charges relating to the HRA for 2025/26 as set out in Appendix 4 and explained in paragraphs 30 and 31.

Reasons for decision

The Cabinet Member for Finance & Transformation introduced the monthly budget monitoring report, detailing the projected outturn for the Council's finances for the current financial year ending 31st March 2025, as of month 10. The report indicated a further overspend of £900,000 since month 9, leading to a projected aggregate overspend of £11 million for the full year 2024/25. This would result in reserves of £23.6 million to carry over into the next year. The overspend was mainly due to increased costs in children, families, and education and corporate services, offset by reductions in other areas.

The Cabinet Member advised that the Housing Revenue Account maintained parity with the budget, despite an adverse variance in rental income and increased operating costs, offset by reduced capital financing costs. Capital expenditure in the Housing Revenue Account was £164.3 million, £43.4 million less than budgeted due to project delays. The Dedicated Schools Grant whilst projecting an in-year deficit, showed an improvement of £1.4 million from month 9. To close, the Cabinet Member then advised Cabinet on proposed in-year changes to the fees and charges for the Housing Revenue Account.

The Leader of the Council remarked that the report assured residents of the Council's sound financial management and sustainability. The Leader noted progress in managing the Dedicated Schools Grant deficit and stated that the Council was weathering financial pressures better than many other local authorities.

Cabinet, therefore, noted the latest financial position and agreed a revised set of fees relating to the Housing Revenue Account (HRA).

Alternative options considered and rejected

Cabinet could have chosen to vary the proposed changes to the HRA fees but considered this would impact on the HRA business plan for 2025/26 and thus alter HRA reserves by the end of the year.