Issue - meetings

To receive an update on the Council’s financial monitoring position for 2024/25 and to approve changes made to the capital programme.

To receive the 2024/25 Financial Monitoring Report

The Cabinet Member: Finance, Governance & Customer Services presented the report of the Interim Director: Finance, People & IDT.

Since the last update presented to Cabinet in December 2024, the national picture had remained the same with many Councils continuing to face extreme challenges in 2024/25 with unprecedented pressures driven by high costs and high demand for services particularly Adult Social Care, Children’s Safeguarding and School Transport.

The report set out the latest financial monitoring position for the year relating to the revenue budget, capital programme and income collection.  It provided the latest projections in relation to the projected outturn which was expected to be over budget by £4.832m at year end, however noted a reduction of £0.429m since the last report.

During 2023/24 Telford & Wrekin’s Dedicated Schools Grant (DSG) was overspent and a deficit of £1.82m was carried forward to 2024/25. The deficit had been a result of budget pressures relating to High Needs provision and these pressures had continued in 2024/25. The current financial monitoring position set out that the deficit was currently projected to significantly increase in 2024/25, from £1.82m at the start of the year to approximately £6m at the end of the current financial year.

In 2020, the Government introduced a statutory override that meant that all local authorities’ DSG deficits were separated from a Council’s wider accounts. This override is currently in place until 2025/26 and the Council were currently awaiting an announcement from government on its policy position beyond 2025/26.

The income collection rates for council tax, business rates and sales ledger had remained the same since the last report presented to Cabinet.

The Council had continued its excellent track record of strong financial management and budget holders would continue their work to manage budgets as effectively as possible to address in-year financial pressures.

The Leader of the Liberal Democrat Group welcomed the report and was pleased to see improvements on the Council’s current financial position since the last report presented to Cabinet.

The Leader of the Conservative Group recognised the work of the Council’s Finance Team and expressed his thanks for the briefings that had been conducted.

RECOMMENED TO FULL COUNCIL that:-

a)    the 2024/25 revenue budget position, which shows that, after applying budget contingencies, the Council is projecting to be within budget at year end, and this is without having to use the Budget Strategy or General Fund reserves be noted;

b)   the position in relation to capital spend; and recommends that Full Council approve the changes to the capital programme detailed in Appendix C and all associated changes to the Medium Term Financial Strategy, including Treasury and Prudential Indicators; 2024/25 Financial Monitoring Report; and

c)    the collection rates for NNDR, council tax and sales ledger be noted.