Agenda item

Cllr Z Hannington presented the 2024/25 Financial Monitoring report which provided up to date information on the projected outturn position for 2024-25 against the approved budget.

Nationally, councils continued to face extreme challenges with unprecedented pressures driven by high costs and high demand for services, particularly in adult social care, children’s safeguarding and school travel assistance. The projected year-end revenue position was summarized at 4.1.8 in the report and set out that before use of contingencies, there was a projected overspend of £4.498m at year end.  Good financial planning and management had ensured there would be a one-off contingency earmarked specifically for social care pressures of £1.959m, which together with the use of part of the general budget contingency, brought the overall position into balance.  The general budget contingency would have a residual balance of £1.4m after meeting the in-year pressures.

The key pressure continued to be adult social care, which currently required and additional investment of £4.3m which related to the cost of providing care packages across all client groups. The service continued to work on delivering care in order to maximise prevention and independence where possible and prioritised looking after the most vulnerable in the community.   It was pleasing to see that none of the budget strategy reserve had been used and this remained at £21.7m.

The capital programme totalled £102.4m and schemes were in progress with spend currently projected to be in line with budget at year end.   Changes to the capital programme were set out at Appendix C to the report and included new allocations and slippage into future years which required formal approval from Council.  Despite the pressures identified, due to strong financial management and budget planning the Council was in a good position.  The council had an excellent track record of managing its financial position and work would continue during 2024/2025 to manage budgets effectively and address the pressures.

Councillor B Tomlinson welcomed the report and commended the local authority on its ability to balance its budgets as local authorities up and down the country were experiencing the same financial pressures.  Comparing this Council’s decisions to those of neighbouring local authorities, he was grateful for what had been achieved.  With the Labour government now in charge, he felt they had been generous with regards to the NHS and extra funding but was interested to see the budget settlement.  Further funding was required for adults and children’s services or this would need to be raised from Council Tax.  As a Council it was important to do as much as possible to influence government’s decisions to support local authorities.

Councillor N Dugmore asked if there was a contingency fund held centrally for contractual and pay inflation and what was the amount and the size of the contingency.  He also asked how much money was held back for pay equality between the sexes.  In relation to the overspend on social care, he commented that care costs would impact the budget and this would get significantly higher in years to come.

Councillor Z Hannington confirmed that those figures would be supplied following the meeting.  In relation to adult social care, the Council continued to monitor closely the services who work on delivering care in order to maximise prevention and independence were possible whilst prioritising the care of the most vulnerable in the community.

RESOLVED – that

a)    the 2024/25 revenue budget position be noted; and that the use of £0.216m Special Fund balances for additional lighting works to be undertaken in the Special fund areas be approved;

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

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

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

e)    delegated authority be granted to the Chief Executive, in consultation with the Leader or the Cabinet Member with responsibility for Finance, to approve bids from the Invest to Save/Capacity Fund.