Issue - meetings

The Cabinet Member: Finance, Governance & Customer Services presented the report of the Director: Finance & Human Resources. The report provided the latest financial monitoring position relating to the revenue budget, capital programme and income collection.

Since the approval of the Medium Term Financial Strategy (MTFS) at Full Council on 3 March 2022, there had been significant changes to the economic climate. A rapid increase in the rate of inflation, interest rates and increased demand for services made the Council’s financial position more uncertain than before.

Before application of contingencies included in the overall revenue budget, the projected outturn position was expected to be over budget by £4.598m at year end. The majority of general contingencies would be required to fund the projected pressure, which left £36k of uncommitted contingency funds to meet any further pressures which may arise during the remainder of the year.

Variations from the approved budget were primarily in children’s safeguarding & family support,  adult social care, education & skills and treasury management.  The Council had an excellent track record of strong financial management, however, the Council was not immune to the economic climate.

Cabinet Members thanked officers for their work in producing the report and officers across all departments who have made continued efforts to reduce spending.

RESOLVED that:

a)    The 2022/23 revenue budget position be noted;

b)   The allocation of the contractual inflation contingency detailed at Section 5.4.2 of the report be approved;

c)    To RECOMMEND TO COUNCIL the transfer of £6m to a budget strategy reserve, detailed in Section 5.4.4 of the report, which will be used to support the Medium Term Financial Strategy (including the current year if required) be approved and to RECOMMEND TO COUNCIL that the use of £0.180m Special Fund balances for additional lighting works to be undertaken in the Special fund areas be approved;

d)   The position in relation to capital spend be noted;

e)    To RECOMMEND TO COUNCIL that the changes to the capital programme as detailed in Appendix C of the report be approved;

f)     The collection rates for NNDR, council tax and sales ledger be noted.