Decision details

The Committee received the report which set out the Final Outturn for 2024-25. Members considered the financial challenges being experienced by the Council and recognised the important activities aimed at minimising the impact on council services.

It was noted that the Corporate Services directorate had an underspend of £2.2 million due to vacancy management, underspends in ICT, savings and additional income.

With regards to Reserves, it was noted that there was a proposal to set up a new reserve to support transformation and improvement activities and concerns were raised about the lack of clarity on the reasons for the earmarked reserve, the total cost and expected savings from the Transformation Programme.

During debate, an amendment was proposed and seconded to:

“Delete Recommendation 3, insert the following and renumber:

3.       instruct officers to bring a report for decision to the next meeting of Corporate Policy Committee setting out the justification for the proposed movement in reserves, including specific and costed proposals for the inclusion of an second reserve of up to £5.3m for the Transformation Programme (which is in addition to the £3.5m reserve approved by Council at its meeting in February 2025).

4.       agree that any further changes in planned expenditure on the Transformation Programme, whether capital, revenue or via reserves, should be full justified and set out in a published report and receive prior approved by Corporate Policy Committee.”

On being put to the vote the amendment was declared lost.

RESOLVED (unanimously):  That the Committee

1               note the overall financial performance of the Council in the 2024/25 financial year, as contained within the report, as follows:

a)      a Net Revenue Overspend of £17.6m against a revised budget of £365.8m (4.8% variance) funded by conditional Exceptional Financial Support (Capitalisation Direction) via borrowing.

b)      General Reserves closing balance of £6.3m

c)      Capital Spending of £88.4m against an approved programme of £215.8m (59% variance)

2               note the content of Annex 1 to the report.

4        recommend to Council approval of the Supplementary Revenue Estimate Request for Allocation of Additional Grant Funding over £1,000,000 as set out in Annex 1 to the report at Section 3, Table 1)

RESOLVED (by majority): That the Committee

3               approve the new Reserves in the Reserves Section, as set out in Annex 1 to the report at Section 5, Table 1) which includes proposed movements to reserves.