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 to note the overall financial position and actions being taken to manage the issues arising.

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

In considering the report, Cabinet noted the current pressures being forecast for the year, which totalled £3.9m and reflected the forecast overspend within Children & Young People.  This comprised of £2.2m within the Dedicated School Grant (DSG) and £1.7m within the General Fund in relation to the Localities, Looked After Children & Permanency and Placement budgets.  Members were advised of the management actions being undertaken in order to mitigate the pressures identified in these areas, which it was noted reflected national trends and challenges in the recruitment and retention of social work staff as well as the increased demand and costs for residential placements. The report also detailed the changes made in order to align the budget with the Council’s new corporate structure (as detailed within Appendix B of the report) and progress in delivery of the £2.7m savings target for 2022-23 (as detailed within Appendix A of the report).

Members also noted the ongoing risks and uncertainties outlined in relation to inflationary pressures and the impact of the cost-of-living crisis both in terms of the current financial year and Council’s overall Medium Term Financial Strategy, given the increased demand on services and also rising costs.  Alongside this, members were also advised of the significant risks identified in relation to the Council’s Capital Programme, which currently included a forecast slippage of £15.9m and overspend of £2.8m attributable to both the General Fund and HRA Housing Programme.  These pressures reflected rising inflation combined with the increased cost of borrowing and a shortage of labour and materials, which it was noted had adversely impacted on the financial viability of schemes within the programme and had resulted in the Council therefore having to explore a range of options to sustain viability including pausing, reducing or reviewing the existing the scope or tenure mix of schemes to ensure funding could continue to be prioritised appropriately.

Commenting on the adverse impact of the measures included in the Governments mini budget delivered in September, members also noted the further announcement of an accompanying medium term fiscal plan now expected at the end of October alongside growth and borrowing forecasts from the Office for Budget Responsibility.  Cabinet was advised that any further impact on the Council’s budget arising as a result would be detailed within the Draft 2023/24 Budget Report due to be presented at the next meeting in November.

Having recognised the ongoing challenges and financial pressures being faced across the Council and work being undertaken to manage the Council’s overall budget position in relation to the ongoing economic uncertainty it was RESOLVED to note the overall financial position and the actions being taken to manage the issues arising.