Issue - meetings

A report from the Executive Director - Resources is attached.  (Non Key)

Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, setting out the Council’s revenue forecast position. The background and context to the current challenging financial position was emphasized. The forecast variances and budget funding shortfall were summarised in Table 1 in the report.

In response to Members’ questions, it was advised that the starting position for the following year would be impacted by any overspend. Officers were putting forward in-year savings and looking at existing cost pressures when considering the 2024/25 budget. Similar challenges and overspending were being experienced across London, in the same key areas.

DECISION:  The Cabinet agreed to note:

a. The forecast adverse variance of £27.452m reported in respect of financial year 2023/24, after additional in-year savings and mitigations have been found of £8.461m. This is stated excluding further potential risks of up to £5.512m and £0.650m in opportunities.

b. Progress on savings set in the original 2023/24 budget as laid out in Appendices B and C of the report, with a projected shortfall in delivery in-year of £2.871m.

c. The impact of the forecast on the reserves balances as set out in paragraphs 123-129/Table 5 and the consequences this has for longer-term financial resilience.

d. The forecast in-year overspend on the Dedicated Schools Grant of £2.623m, leading to a projected cumulative deficit of £17.859m.

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

(Non Key)