Decision details

The committee considered the report which set out the first financial outturn position for 2024-25. It was highlighted that the overall forecasted revenue outturn position was an adverse variance of £26.5m against a revised revenue budget of £387.6m. It was noted that this was based upon activity, expenditure and commitments as at the end of July 2024.

It was noted that the Capital Programme had forecasted an expenditure of £164.5m against the MTFS approved budget of £215.8m. The committee queried the reprofiling of capital expenditure and requested that further detail be provided to update members on the overall programme including projects that have slipped, when they would be reconsidered and any implications. Officers agreed to ensure that this detail be included in the Second Financial Review report.

The committee were pleased that regular discussions with MHCLG continued with lead officers and noted that the Q1 financial forecast did not include application of Exceptional Financial Support that was requested in 2023-24. It was noted that whilst the forecasted overspend was significant, a number of mitigations had been put into place to urgently reduce spend and identify additional savings, this work was being overseen by the Strategic Finance Management Board.

RESOLVED (unanimously):

That the Corporate Policy Committee

1.    Note the factors leading to a forecast adverse Net Revenue financial variance of:

-          Council: £26.5m against a revised budget of £387.6m (6.8%)

-          Corporate Policy: £0.0m against a revised budget of £41.7m (0.0%).

-          Noting the contents of Annex 1, Section 2 relevant to services within the committee’s remit, and review progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts, and to understand the actions to be taken to address any adverse variances from the approved budget.

2.    Note the in-year forecast capital spending of:

-          Council: £164.5m against an approved MTFS budget of £215.8m, due to slippage that has been re-profiled into future years.

-          Corporate Policy: £11.7m against an approved MTFS budget of £10.4m

3.    Note the available reserves position as per Annex 1, Section 5.

4.    4. Note the Capital Virements above £500,000 up to and including £5,000,000 as per Annex 1, Section 4, Table 3 will be approved in accordance with the Council’s Constitution.

Cllr Mick Warren was not present during the debate and vote on this item.