Issue - meetings

This report sets out the current forecast of income and expenditure versus the revenue budget for 2022/23 and other key financial data.

Cabinet RESOLVED:

(1)    To note the overall financial position and the actions being taken to manage the issues arising.

(2)    To delegate to the Director of Finance, in consultation with the Deputy Leader, authority to revise the terms of the loan agreement between the Council and i4B Holdings Ltd and First Wave Housing to allow borrowing within all tenures provided by the Public Works Loan Board for the reasons detailed in paragraphs 4.10 to 4.12 of the report.

Councillor Mili Patel (Deputy Leader and Cabinet Member for Finance, Resources & Reform) introduced a report, which detailed the current forecast of income and expenditure against the revenue budget for 2022/23 and other key financial data.

Cabinet noted the current pressures being forecast for the year, which totalled £0.5m and reflected the increase in costs associated with the Dedicated Schools Grant (DSG) High Needs Block, along with progress against delivery of the savings target of £2.7m, as detailed within Appendix A of the report.

As highlighted during consideration of the Medium Term Financial Strategy, members also noted the significant budgetary risks identified in relation to the ongoing uncertainty around inflation and pressures the Council may face as a result of cost of living crisis, which would continue to be closely monitored throughout the year.

In addition, members were advised of the current challenges created as a result of the increase in borrowing rates impacting not only the viability of projects within the Council’s Capital Programme but also the loan facility available across both i4B Holdings Ltd and First Wave Housing to support their programme of activity and acquisitions programme.  In order to mitigate these challenges a variation to the loan facility had been proposed to provide both companies with greater borrowing flexibility which, given the challenges identified, Cabinet advised they were minded to support.

Having noted the ongoing challenges identified and work being undertaken to ensure the Council’s overall budget position remained within target in order to continue delivering against the aims and priorities identified, it was RESOLVED:

(1)     To note the overall financial position and the actions being taken to manage the issues identified within the report.

(2)     To delegate to the Director of Finance, in consultation with the Deputy Leader, authority to revise the terms of the loan agreement between the Council and i4B Holdings Ltd and First Wave Housing to allow borrowing within all tenures provided by the Public Works Loan Board for the reasons detailed in paragraphs 4.10 to 4.12 of the report.