Agenda item

To receive the final outturn postion for 2024/25.

The Cabinet Member: Finance, Governance and Customer Services presented the 2024/25 Finance 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 was approved in 2024, the economic climate had continued to be challenging with costs pressures being experienced, particularly in relation to the provision of Adult Social Care. 

The funding outlook for the medium-term remained very uncertain and regular updates in relation to the projected financial position for 2025/26 would come before Cabinet during the 2025/26 municipal year.

Despite the significant pressures faced during 2024/25, the Council ended the year within budget, a considerable achievement.  This demonstrated strong financial management and resilience and had been achieved through a range of measures such as maximisation of external income, in year grants, trading income, capitalisation of revenue spends and one-off savings from vacancy management.

The gross revenue budget for 2024/25 was £529m with the net budget at £157m with the revenue outturn position being within budget by £0.091m (0.06% of net budget). The position at year end allowed a small number of one-off investments in key areas in order to support the Council’s priorities and future financial sustainability and the budget strategy reserve remained at £21.7m.  The council will continue to feel the impact of inflationary pressures, a continued demand for services and uncertainty in relation to the changes to the local government funding system due to be implemented in April 2026.

It was very pleasing to report that Children’s Safeguarding & Family Support ended the year within budget, an unprecedented position compared to previous years and a clear demonstration of the positive work being undertaken by the service.

The key pressure area during the year had been Adult Social Care (ASC), with £8.8m of essential additional investment being required.  This included the impact of market price increases, more complex needs, higher demand and longer periods of care being required.  Work continued to deliver care which maximised prevention and independence where possible.

Capital spend at year end was £87.17m against an approved budget of £93.15m. Some re-phasing of expenditure would be required into 2025/26 as a result of re-profiling spend which would generate some treasury management benefits in 2025/26.

Non-Domestic Rate (NDR) collection was ahead of target at year end whilst Council Tax and Sales Ledger Debt were slightly behind the targets set.

NuPlace Ltd unaudited accounts had received rental income of £5,046m in 2024/25 which had generated £0.448m of profit after investment and taxation.  A dividend of £0.302m had been paid to the Council as its sole investor.  During 2024/25, the Council had received a total of £2.0m which included the dividend, additional interest and other marginal costs.  Housing stock now sat at 608 homes which added £5.6m to the asset value.

Cabinet Members welcomed the report but noted that adult social care remained the biggest pressure nationally.   The quality of service had been rated good by CQC and highlighted the support to residents via the hybrid assessments which could be used a best practice.  NuPlace was a good news story generating income to support front line services whilst providing good quality homes, security of tenure and developing brownfield sites.  The Council continued to have a strong budget position by investing in front line services and prudent projects such as the solar farm and NuPlace and it was important to note that this was not the same nationally.  Investments and expansion to the school estate, good local jobs and leisure facilities enabled the Council to protect, care and invest in order to be a better borough.

The Leader of the Conservative Group congratulated the Council on winning the Council of the Year award.  He raised concerns in relation to good and bad borrowing and the interest on the debt, capitalisation and revenue expenditure.  He asked that both now and in the future that the Council be conscious of future costs and that they be more explicit where capitalisation was being used.

The Leader responded that capitalisation measures allowed funds to be raised and be used for revenue spending.  Investment focussed on both children's and adults' services, tripling the investment in these key areas. Financial challenges had been significant with important decisions required to avoid cutting services.  Where opportunities presented, these were taken for the benefit of the residents.   Support from the local MP had further aided efforts and there had been a 2.6% real terms growth in the budget year on year.  He highlighted the improvements to free school meals, breakfast clubs, local transport schemes, active travel initiatives and infrastructure projects.   If money was removed from the budget it would mean charges for green waste collection, car parking and require increased bus fares above £2.

RECOMMENDED TO FULL COUNCIL that:

a)    the performance against the 2024/25 Net Revenue budget which resulted in outturn being within budget by £91k be noted;

b)   the revenue outturn position for 2024/25, which remained subject to audit by the Council’s external auditors, and related virements be agreed;

c)    delegated authority be granted to the Chief Executive, in consultation with the Section 151 Officer, to approve the transfers to reserves, and associated approval to the relevant members of the Senior Management Team, after consultation with the relevant Cabinet Member, to spend the reserves in relation to the Income/Budget equalisation reserve;

d)   the capital outturn position and related supplementary estimates, re-phasing and virements as summarised in the report be agreed;

e)    delegated authority be granted to the Director: Finance, People & IDT to make any changes required, in consultation with the Cabinet Member for Finance, Governance and Customer Services

f)     the performance against income targets be noted; and

g)   the suite of Medium-Term Financial Strategy reports approved by Full Council on 27 February 2025 be the Council’s Efficiency Strategy for 2025/26, to enable new capital receipts to be used to fund the revenue costs of transformation and efficiency projects which will support the future financial position.