Agenda item

RESOLVED: that

1.         the revenue financial outturn based on the projected position at Month 6 2023/24 be noted.

2.         the capital spend and projected position at Month 6 2023/24 be noted.

A letter from the Policy Review and Performance Scrutiny Committee was circulated.

Cabinet considered the month 6 budget monitoring report for 2023/24.  The report provides Cabinet with the details of the projected 2023/24 financial monitoring position as at the end of September 2023 (month 6).

It was noted that the overall monitoring position, as at Month 6, reflects a total projected net annual Council overspend of £5.388 million. This is detailed in Appendix 1 to the report and includes a total directorate net overspend of £7.688 million, partly offset by an underspend against the capital financing budget of £1.500 million and release of contingency for the Council Tax Reduction Scheme.

Overspends due to budget pressures were noted in the following areas –

·         Economic Development - largely due to income shortfalls within Culture, Venues and Events and pressures within Property Services, partly offset by a surplus in the Building Services Trading Unit.

·         Education – pressures in Home to School Transport, Out of County Placements and Catering were noted.  In relation to Universal Free School Meals, uncertainty has been mitigated by a drawdown of £1 million for earmarked reserves.

·         Children’s Services – the overspend is primarily due to the placements costs for the authority’s children looked after with sustained demand pressures and price increases resulting in costs exceeding budget.

Slippage on projects was referenced; it was noted that there are a variety of reason for this including increased costs which require value engineering. This in turn creates delays and subsequent inflationary pressures, which serves to highlight the challenging financial climate.

In reference to the budget setting process, it was noted that Cabinet are mindful of the challenges related to budget planning and achievement of savings and will consider how further accuracy can be brought to the modelling process to provide more confidence on achievability. 

RESOLVED: that

1.         the revenue financial outturn based on the projected position at Month 6 2023/24 be noted.

2.         the capital spend and projected position at Month 6 2023/24 be noted.