Agenda item

To receive the Financial Monitoring Report for 2023/24.

The Cabinet Member: Finance, Customer Services & Governance presented the report of the Interim Director: Finance & Human Resources. The report outlined the latest financial monitoring position relating to the revenue budget, capital programme and income collection.  It highlighted the continued changeable economic climate with high inflation, high energy costs, increases in interest rates and the rising demand for services fuelled by the cost of living emergency facing local residents, businesses and the Council.

The latest projections for 2023/24 were set out in relation to the outturn position and how the net revenue spend compared to the budget set for the year; progress against the approved 2023/24 capital programme; the key issues to be highlighted; together with a summary of collection information in relation to Council Tax, Business Rates and Sales Ledger income.

Children’s safeguarding and adult social care had continued to require further additional investment in order to meet high demand and manage market challenges.  Before application of the remaining contingencies included in the revenue budget, the projected outturn was expected to be over budget by 9.438m at year end, an increase of £1.813m since the last report. Using the remaining budget contingency and one-off reserves identified it was expected that the overall position was that an additional investment of £0.080m would be required.

The Council had an excellent track record of strong financial management and work would continue to manage budgets as effectively as possible during the remainder of 2023/24 to address in-year financial pressures.  Work already identified such as accelerating savings proposals, review of reserves and balances, review of vacancies and strict control of spend would continue to be actioned.

The funding outlook for the medium term remained uncertain and would be challenging due to current inflationary pressures, the increasing costs of placements in children’s safeguarding and high demand in adult social care.

Cabinet Members commented on the financial pressures that local authorities were under, particularly in relation to the increasing demands on children’s and adult’s services.  It was possible that 20% of Councils may need to issue s114 Notices or go bankrupt.

The Leader of the Liberal Democrat Group welcomed the report but noted that the Council would have to use £6.7m of reserves and increase Council Tax in order to meet the increased demand in children’s services but that this would have an impact on other council services.

The Deputy Leader of the Conservative Group noted the report and the effort the Council was making despite the increased demand for adult social care and children’s services.  This was a national situation which required national government to review how local government was funded.

The Leader commented that one in four councils across the country of all political persuasions faced significant pressures due to the demand for adult social care, children’s services, temporary accommodation, homelessness and housing need and stressed the importance of a stable, safe home. 

RESOLVED – that:

a)    the 2023/24 revenue budget position be noted;

b)   the position in relation to capital spend be noted; and

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