Issue - decisions

RESOLVED:

That the Cabinet:

1.     Note the budget position and treasury management update as at March 2023 (Month 12) as outlined in Part A of this report.

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

a)    Approves the rephasing of £26,300k 2022/23 General Fund Major Projects and £2,266k from the Programme of Works expenditure and associated financing budgets into future years.

b)    Approves the release of the £500k General Contingency budget into the Council’s Earmarked Reserve balance.

c)    Approves the rephasing of £9,734k 2022/23 HRA capital expenditure and financing budgets into future years as set out in the report.

d)    Accepts £78k grant funding from the Department for Environment, Food, and Rural Affairs (Defra) for costs associated with the delivery of new post-Brexit port health authority functions at the Heathrow Imported Food Office.

e)    Accepts a grant of £36,962 from North West London Integrated Care Board to fund local initiatives to address health inequalities faced by care leavers.

Reasons for decision

Cabinet received the final budget results for the financial year to 31 March 2023.

The Cabinet Member for Finance noted the net in-year underspend on normal activities along with the addition of a further £1.6m into earmarked reserves, ensuring the Council could carry forward £20m of such reserves into the 2023/24 financial year. Along with general balances of £26.8m, it was welcomed that the Council had in effect £46.8m of reserves at its disposal at the start of the new financial year, with the objective of retaining and building such reserves as paramount.

The macro-economic position was outlined by the Cabinet Member, along with both continuing and legacy financial pressures, including Covid and inflation, which it was noted had caused a material impact on costs. The Cabinet Member highlighted the importance of the Council’s savings programme, which for 2022/23 would be fully achieved.

Cabinet was updated on the outturn position of the Housing Revenue Account and Capital Budget. In respect of the Dedicated Schools Budget, it was welcomed that there was a reduction in the year of the deficit by £1.7m, although it was noted there were continuing pressures from inflation in the high needs block.

The Cabinet Member welcomed the positive cash flow situation and advised that aggregate borrowings had reduced during the year by £33m, along with composite interest rates which the Council borrows at, at a level below the Bank of England Base Interest Rate.

Cabinet made a number of other financial related decisions including the rephasing of capital budgets into future years and accepting grants for the Imported Food Office at Heathrow and to address health inequalities faced by care leavers.

The Leader of the Council welcomed the good outturn position, and noted how the Council had been able to manage its business well during a period of high inflation and financial pressures. Along with the fact that the Council had been able to add substantially to its reserves, it was noted that this was something that set Hillingdon Council apart from other local authorities. The Leader welcomed the savings both achieved to-date and planned for the forthcoming year, but mindful of future pressures, explained that a further review would need to take place. The Leader thanked the Cabinet Member and Council Officers for their efforts in producing a sound budget outturn position.

Alternative options considered and rejected

None.