Agenda item

 To receive the 2024/25 Financial Monitoring Report.

The Cabinet Member: Finance and Governance presented the 2024/25 Financial Monitoring Report which gave details of the latest financial monitoring position for the year in relation to the revenue budget, capital programme and income collection.

Since approval of the Medium Term Financial Strategy (MTFS) in February 2024, the economic climate had continued to be challenging and cost pressures, particularly in relation to the provision of Adult Social Care had been experienced.

The Financial Monitoring Report provided details in relation to the projected outturn position, the projected net revenue spend and progress against the approved 2024/25 capital programme.  Key issues were highlighted in the report and included details relating to council tax, business rates and sales ledger income.

The funding outlook for the medium term remained uncertain and would continue to be challenging but the Council would continue to delivery quality services whilst ensuring a balanced budget.

Nationally, councils continued to face extreme challenges with unprecedented pressures driven by high costs and high demand for services – particularly in relation to Adult Social Care, Children’s Safeguarding and School Travel Assistance.  Local Government Association (LGA) analysis showed that councils in England faced a funding gap in excess of over £6b in the next two years and that councils required a multi-year and timely financial settlement and clarity over financial reforms to enable planned and informed decision making.

The projected year end position was summarised at 4.1.8 of the report and although currently set at 3.553 over budget at year end, following good financial management and specific contingency plans, it was expected that overall, there would be a balanced budget.

Key pressures were from Adult Social Care (ASC) with additional investment of £4.3m being required. 

The report outlined details in relation to the Dedicated Schools Grant (DSG) which totalled £133.4m in 2024/25.  In 2023/24 there had been an overspend of £1.82m due to pressures relating to High Needs provision which had been carried forward.  This was a national issue with most upper tier councils showing a DSG deficit at year end 2022/23.

The capital programme totalled £150.4m for 2024/25 with a project spend of 84% at year end and some re-phasing into 2024/25 would be required to complete projects.

The report set out details in relation to Treasury and Prudential Indicators, together with governance arrangements in relation to borrowing.

Council Tax and NNDR (business rates) collection was within targets.  Sales ledger was outside of the target, but recovery would continue in the new financial year.

The report showed that the council had a strong financial management and work would continue throughout 2024/25 to address any budget pressures.

Members welcomed the report and considered that the council were in a reassuring position.  The report demonstrated the difficult challenges the council faced but it was an absolute testament to the decision making of the administration and work of council officers.  They would look to work with the new Labour government to address funding and longer-term financial settlements.  In relation to Adult Social Care, they would continue to look at every opportunity to make savings whilst continuing to ensure the best possible services to local residents.

The Leader of the Liberal Democrat Group welcomed the report and expressed that there was a need to be flexible in relation to budget led services.  In relation to the funding of social care, there was no magic wand, but it was hoped the revenue grant settlement would be received before Christmas.  The council had a responsibility to look after the most vulnerable and find way to fund this service and the team had been a steady hand over turbulent water which reflected well on the council.

The Leader of the Conservative Group congratulated Shaun Davies on his recent success and wished Sir Kier Starmer well as the new government.  He felt that in relation to the projected £4.3m overspend against the budget that the social care model was flawed and needed addressing in order that the council could meet demand and its statutory obligations. 

RESOLVED – to RECOMMEND TO COUNCIL that:

a)    changes to the capital programme and all associated changes to the Medium Term Financial Strategy and Prudential Indicators be approved; and

b)   the 2024 revenue budget position be noted;

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

d)     the current position in relation to Treasury & Prudential Indicators be noted.