Agenda item

This report sets out the current forecast of income and expenditure versus the revenue and capital budgets for 2023/24 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 note the savings delivery tracker in Appendix A of the report.

(3)    To note the Prudential Indicators set out in Appendix B of the report.

(4)    To approve the virements set out in section 3.9.10 of the report.

(5)    To agree for new loan facilities of up to £2.31m to be made available to First Wave Housing for the Refugee Housing Programme, as set out in section 4.5.2 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 23 October 23

Councillor Tatler (Deputy Leader and Cabinet Member for Finance, Resources and Reform) introduced a report which set out the financial forecast for the General Fund revenue budget, Housing Revenue Account, Dedicated Schools Grant, and the Capital Programme as at Quarter 2 2023-24.

In presenting the report, Councillor Tatler outlined the revised position on the General Fund revenue budget for 2023-24, which members were advised included a forecast overspend of £13.4m against the revised revenue budget at Quarter 2.  In recognising the seriousness of the position outlined and scale of the financial challenges faced for 2023-24 and 2024-25 members were advised that in addition to the work already in progress to implement savings and to identify new savings proposals for 2024-25 and 2025-26, the Council would also need to introduce further measures, as detailed within section 1 the report, to control expenditure in order to mitigate against the pressures identified and maintain financial control over the current financial position.

In highlighting the ongoing impact of the current economic environment, members were advised that the main pressure and cause of the forecast overspend related to high levels of demand as a result of an increase in homelessness and a reduction in the supply of suitable accommodation accompanied by an increase in the associated cost of providing temporary accommodation, with the pressure faced recognised as unprecedented and unpredictable.  Whilst the issues highlighted were being reported across London and on a nationwide basis the Council had already identified a number of key actions designed to manage these pressures and support vulnerable residents, also recognising the ongoing impact of the cost-of-living crisis.  Cabinet was advised that the measures identified would remain in place until the end of the financial year with updates continuing to be provided for Cabinet as part of ongoing forecast and budget monitoring reports.

In supporting the approach outlined, Councillor Knight as (Cabinet Member for Housing, Homelessness and Renters Security) also took the opportunity to highlight the unprecedented and significant nature of the pressures identified in relation to the increase in homelessness, reduction in supply of suitable alternative accommodation and increase in the cost of providing temporary accommodation which the strategy developed in response had been designed to reflect and seek to address.

In recognising and supporting the importance of the work being undertaken across the Council to address and mitigate against the pressures and challenges identified members also welcomed what were felt to be not only the prudent but also responsible nature of the measures identified in order to ensure the Council remained focussed on maintaining a balanced budget whilst also seeking to safeguard key services and protect residents, given the wider impact of the cost-of-living crisis and economic challenges highlighted.

In support of the approach outlined, Cabinet therefore RESOLVED:

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

(2)        To note the savings delivery tracker in Appendix A of the report.

(3)        To note the Prudential Indicators set out in Appendix B of the report.

(4)        To approve the virements set out in section 3.9.10 of the report.

(5)    To agree for new loan facilities of up to £2.31m to be made available to First Wave Housing Ltd for the Refugee Housing Programme, as set out in section 4.5.2 of the report.