Agenda item

To receive the 2023/24 Financial Outturn Report.

The Cabinet Member: Finance and Governance presented the 2023/24 Financial Outturn Report which set out the final outturn position for the year in relation to the revenue budget, capital programme and income collection.

Since the Medium Term Financial Strategy (MTFS) was approved, the economic climate had continued to change with high inflation, high energy costs, increases in interest rates and increasing demand for many services partly fuelled by the cost of living emergency facing our residents, businesses and the Council itself.

The report set out the final financial outturn position for 2023/24 with the funding outlook for the medium term remaining very uncertain.  

Despite the significant pressures faced during 2023/24 the Council ended the year within budget and clearly demonstrated strong financial management and financial resilience.  Additional income received across leisure and highways and from grants was applied against the budget.

The gross revenue budget for 2023/24 was £481m and the net budget was £146m. The revenue outturn position was within budget by £0.015m. The year end position allowed a small number of one-off investments in key areas to be made which supported the Council’s priorities and future financial sustainability.

The Council has not had to make any unplanned use of the budget strategy reserve, which remained at £21.7m.

The financial position was better than report to Cabinet in February due to additional income being received across several areas including leisure, highways and grants which was applied against the base budget.  There had been capitalisation of costs across several areas which included the stringent management of vacancies and forecast costs being lower than expected in areas such as repairs and maintenance and transport costs in education and skills.  This had allowed for a small number of one-off investments to support council priorities.

All of the £3.9m contingency fund had been used and additional reserves released to offset cost pressures during the year.

Adult Social Care was £8.377m over budget with £1.1m being in relation to the reablement services and pressure due to the discharges from hospital.   Children’s Safeguarding were £3.984m over budget with all other areas within budget.

Treasury Management performed better than expected providing a £1m benefit.  Other one-off benefits had also been received from good robust forecasting.

The public health grant totalled £13.598m which in 2023/24 and was ring-fenced to support public health responsibilities and £2.27m would be carried forward to 2024/25.

Outturn against the Capital programme was £83.49m against an approved budget of £90.05m.  Details of rephased schemes were set out in the report. 

The report set out the position in relation to NuPlace Ltd and at 1 March 2024 the housing portfolio comprised of 500 homes with 23 acres of brownfield land being regenerated.   The unaudited accounts showed that NuPlace generated an operating profit after interest and taxation of £0.253m in 2023/24. The company issued a dividend of £0.253m in 2023/24 which was paid to the Council as its sole investor.  Including the dividend, the Council received a total of £2m from Nuplace during 2023/24.

In relation to income monitoring, Council Tax was in target with NNDR (business rates) and Sales Ledger being slightly behind target.

Thanks was given to the teams across the council whose robust performance had helped deliver high quality services against a balanced budget across the last 13 years.  

The Leader of the Liberal Democrat Group welcomed the report and commented that this had been a really tough year for local authorities and noted that the council had need to go into the reserves to the value of £6m which equated to a 7.5% rise of council tax.   He congratulated the council on their remarkable achievement of producing and publishing the accounts for year end 31 March 2024 and presenting them to the Audit Committee on 29 May 2024.

The Leader of the Conservative Group commented that net debt was £330m which was a significant burden in relation to interest.  Capital slippages could have a beneficial impact in relation to lower interest outcomes. 

RESOLVED – to RECOMMEND TO COUNCIL that:

a)    The revenue outturn position for 2023/24, which remains subject to audit by the Council’s external auditors, and related virements be approved;

b)   the transfers to reserves, and associated approval to the relevant members of the Senior Management Team (as determined by the Chief Executive) after consultation with the relevant Cabinet Member to spend the reserves be approved;

c)    the capital outturn position and related supplementary estimates, re-phasing and virements shown in the report 2023/24 Financial Outturn Report be approved;

d)   delegated authority to the Interim Director: Finance & HR to make any changes required, in consultation with the Cabinet Member for Finance, Customer Services and Governance be granted; and

e)    the performance against income targets be noted.