Issue - meetings

A report from the Executive Director of Resources is attached.  (Key decision – reference number 5489)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources, providing an update on how the Council’s income and expenditure compares to the original budgeted position for 2022/23 based on forecasts as at the end of November 2022, and the forecasted outturn for the Dedicated Schools Grant (DSG).

Details of gross variance and key themes were set out by department at Table 1 in the report. Planned use of reserves brought the overspend down. Mitigating actions being taken and proposed to manage the ongoing financial position were noted, and financial resilience remained a priority. The Dedicated Schools Grant overspend was advised as consistent with many other London boroughs.

DECISION:  The Cabinet agreed:

1.  To note:

a.  The 2022/23 financial year the General Fund revenue forecast outturn position of £18.4m adverse variance, arising in the main from demographic and cost pressures exceeding the £22m budgeted growth and unanticipated inflationary increases across pay and energy.

b.  Financial resilience remains a key priority for the Council and an in-year budget savings and cost control strategy is in place to protect the Council’s reserve levels.

c.  The potential drawdown on reserves and the impact this has on the forecast level of reserves. The £3m contingency will be required to achieve the General Fund forecast outturn and the planned drawdown from reserves of £2m will also be required.

d.  The Covid-19 impact on the General Fund of £9.8m which will be funded from the Council specific Covid-19 earmarked reserve.

e.  The Dedicated Schools Grant (DSG) revenue overspend of £2.5m, which is reflected in the balance sheet.

2.  To require Executive Directors continue to work with Cabinet Members to robustly manage the underlying budget position, implement in year savings and further cost control measures deemed appropriate to the challenge faced, whilst managing, mitigating, and minimising the Covid-19 financial impact.

3.  To note the potential forecast level of reserves and implications for 2022/23 and challenging financial position over the life of the MTFP.

The report sets out the options considered, if any, and the reasons for the recommendations and the decision.

(Key decision – reference number 5489)