Issue - meetings

To the report on the current forecast outturn for the financial year 2024/25 based on income, expenditure and known commitments as at the end of August 2024.

The Committee considered a report which provided the current forecast outturn for the financial year 2024/25 based on the Council’s income, expenditure and known commitments as at the end of August 2024. The report also identified actions that were being taken to address adverse variances to urgently address financial sustainability.

The Second Financial review forecast revenue outturn was forecasting an adverse variance of £20.1m.  This was before the application of any exceptional financial support.  The Economy and Growth Committee were reporting an underspend of £3.3m against the net budget of £28.1m.  The key reasons for the underspend were underspends from vacancy management and lower gas and electricity prices.

An amendment was proposed and seconded to Recommendation 2 as follows:

The addition of the following at the end of recommendation 2

“To facilitate this review, establish a task and finish group, consisting of five councillors (2 Labour, 2 Conservative, 1 Independent) to review and provide scrutiny to the changes in timing and funding of, reasons for, risks and consequences of Economy and Growth Committee capital projects and to report back to the committee on its findings and recommendations by the end of this financial year.”

The amendment was put to the vote with 6 voting for, 6 voting against and no abstentions.    In accordance with the Council’s Constitution/Procedural Rule 2.36, the Chair exercised their casting vote and voted against the amendment.  The amendment was therefore declared lost.

RESOLVED (by majority):  That the Committee

1               note the factors leading to a forecast adverse Net Revenue financial pressure of £20.1m against a revised budget of £395.4m (5.1%) and note the contents of Annex 1, Section 2 of the report on the progress of the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts and the actions to be taken to address any adverse variances from the approved budget.

2               note the in-year forecast capital spending of £157.7m against an approved MTFS budget of £215.8m due to slippage that has been re-profiled into future years.

3               note the available reserves position as per Annex 1, Section 5 of the report.