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 as detailed within the report.

(2)      To note the savings delivery tracker in Appendix A and detailed in section 3.7 of the report.

(3)      To approve the virements detailed in section 3.7 of the report.

Councillor Mili Patel (as 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, with a forecast overspend of £3.2m being made up of £1.6m pressures within the Dedicated Schools Grant (DSG) and £2.3m of pressures within the General Fund focussed around Children and Young People in relation to the Localities, Looked After Children & Permanency and Placement budgets, although it was noted these had been partially offset by a £0.7m underspend within the Central Items budget.  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 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 ongoing risks identified in relation to the Council’s Capital Programme, which currently included a forecast slippage of £35.6m and underspend of £0.2m largely attributable to South Kilburn, Public Realm and Regeneration and with the underspends being largely offset by overspends in both the General Fund and HRA Housing programmes.  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 especially within the New Council Homes Programme (NCHP) 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.

In noting that the provisional Local Government Finance Statement had only been announced on 19 December 2022, members were advised that further details regarding its impact would be reported to Cabinet on 6 February 2023 as part of the Budget and Council Tax Setting report.  Commenting on the challenges identified as a result, members noted the specific impact this had created in terms of Adult Social Care and the programme of planning in relation to winter care.

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:

(1)       To note the overall financial position and the actions being taken to manage the issues arising as detailed within the report.  ...  view the full minutes text for item 11