This report sets out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account for 2023/24 as well as performance against the measures of success published in the Council’s Corporate Plan.

The Committee considered a report setting out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account (HRA) for 2023/24 and the performance against the measures of success set out in the Council’s Corporate Plan.  The following documents were attached to the report:

·         Appendix 1 - General Fund - Revenue Outturn 2023/24

·         Appendix 2 - Brighter Futures for Children (BFfC) Outturn 2023/24

·         Appendix 3 - Savings 2023/24

·         Appendix 4 - Delivery Fund 2023/24

·         Appendix 5 - General Fund -  Capital Programme Outturn 2023/24

·         Appendix 6 - Housing Revenue Account - Revenue Outturn 2023/24

·         Appendix 7 - Housing Revenue Account -  Capital Programme Outturn 2023/24

·         Appendix 8 - Reserves Position as at 31st March 2024

·         Appendix 9 - Corporate Plan Performance KPIs 2023/24

·         Appendix 10 - Corporate Plan Projects 2023/24

The report noted that budget for 2023/24 had been prepared during another challenging period due to inflation running at levels not seen in decades, wide-scale industrial action taking place in support of pay claims, a one-year Local Government funding settlement from Central Government with the long-planned changes to the Local Government Finance system, including the Business Rates rest, having been deferred beyond the period of the current Parliament. The Budget had included £5.295m of savings to be delivered in 2023/24 to deliver a balanced budget position, with a planned net contribution of £6.128m to reserves.  The actual outturn position was an adverse net variance of £6.099m, which was an adverse movement of £0.982m from the projected outturn position as at the end of Quarter 3. The outturn position was inclusive of £13.042m of additional net transfers from reserves approved under delegated authority by the Director of Finance. In addition to the wider, macroeconomic issues Local Government was facing an escalation of costs that far exceeded increases in funding. At the Council, the most significant pressures had been in Childrens Social Care and Homelessness.

The report explained that Brighter Futures for Children had seen a 14% increase in the number of Children Looked After (CLA) from March 2023 to December 2023 which was accompanied by a significant increase in placements costs. The overall impact was an adverse variance against budget of £8.506m.  Also, the increase in the number of families presented as homeless was even more stark, with the figure of 117 in November 2023 being 334% of the equivalent figure of 35 in March 2023.  Combined with a 35% increase in unit costs over the same period had resulted in an adverse variance against budget of £1.459m.

The overall adverse net variance of £6.099m was recommended to be funded from the Finance Resilience Reserve, in line with the assumptions included when the 2024/25 Budget was approved in February 2024. This would leave a balance of £8.236m in the Financial Resilience Reserve as of 31 March 2024.

The provisional General Fund Capital Programme outturn was a £5.178m positive net variance against the proposed revised budget of £50.799m. A net total of £5.122m of budgets was requested to be reprogrammed from 2023/24 into future years of the Capital Programme as set out in Appendix 5 attached to the report.

The approved Housing Revenue Account (HRA) budget had assumed a net drawdown from HRA reserves of £2.499m. The provisional outturn position for the HRA required an actual net drawdown from HRA Reserves of £4.294m. This was comprised of a drawdown from the Main HRA Reserve of £6.401m for HRA day to day operational costs, a drawdown of £0.392m from the North Whitley PFI Reserve and a contribution to the Major Repairs Reserve balance of £3.037m relating to the excess Depreciation charge over budget in 2023/24. The HRA was therefore reporting an adverse net variance compared to budget of £1.257m. In addition to the HRA day to day operational costs drawdown, there was a further total drawdown of £1.546m from the HRA Main Reserve relating to one-off costs, for instance directly funding the Housing Management System scheme within the Capital Programme which was originally planned to be funded from external borrowing. This switch in funding enabled the HRA to avoid incurring additional borrowing costs in future.

Also, the provisional HRA Capital Programme outturn was a £2.065m positive net variance against the approved budget of £33.564m. A net total of £2.065m of budgets were requested to be reprogrammed from 2023/24 into future years of the Capital Programme as set out in Appendix 7 to the report.

The report also set out performance against the measures of success published in the Council’s Corporate Plan. Of the 57 Corporate Plan Performance KPIs for 2023/24, at the end of the financial year 40% were rated “green”, 23% “amber”, and 37% “red”. Of the 47 Corporate Plan Projects, 68% were “green” and 32% “amber”.  The full list of Performance KPIs were set out in Appendix 9 and Projects as Appendix 10 to the report.

Resolved –

(1)       That it be noted that:

a)    the provisional General Fund revenue outturn position for 2023/24 was an adverse net variance of £6.099m which is an adverse net movement of £0.982m from Quarter 3 as set out in Appendix 1;

b)   the provisional General Fund revenue outturn position includes the outturn position reported by Brighter Futures for Children (BFfC) as summarised within Section 3 of the associated report, as set out in Appendix 2;

c)    £4.202m (52%) of savings had been delivered in 2023/24 with £2.768m (34%) of non-delivered savings being carried forward into future years. £1.148m (14%) of savings were removed as part of the 2024/25 Budget and 2024/25-2026/27 Medium Term Financial Strategy setting process as set out in Appendix 3;

d)   £3.233m of Capital Receipts had been used to fund transformation (the Delivery Fund) in accordance with the Capitalisation Directive as set out in Appendix 4;

e)    the provisional General Fund Capital Programme outturn was a positive net variance of £5.178m against the proposed revised budget of £50.799m, as set out in Appendix 5, before the net reprogramming of £5.122m of budgets to future years;

f)     the provisional Housing Revenue Account (HRA) outturn position was an adverse net variance of £1.257m, which resulted in a net drawdown from HRA Reserves of £3.756, as set out in Appendix 6;

g)   the provisional HRA Capital Programme outturn position was a positive net variance of £2.065m against the approved budget of £33.564m set out in Appendix 7, before the net reprogramming of £2.065m of budgets to future years ;

h)   the Reserves position as at 31st March 2024 as set out in Section 12 of this report and as set out in Appendix 8;

i)     the performance achieved against the Corporate Plan success measures as set out in Section 14 of the report and as set out in Appendices 9 and 10.

(2)       That the General Fund Revenue outturn balance of £6.099m was funded from the Financial Resilience Reserve as set out in Appendix 8 be approved;

(3)       That the Council provides £9.139m of additional funding support to Brighter Futures for Children (BFfC) over and above the 2023/24 contract sum in respect of their 2023/24 outturn position be approved;

(4)       The amendments to the General Fund Capital Programme (as set out in Section 9 of the associate report and Appendix 5) resulting in a revised Capital Programme budget of £50.799m for 2023/24 (before the net reprogramming of £5.122m of budgets to future years, £109.005m for 2024/25, and £51.121m for 2025/26 be approved;

(5)       That scheme and spend approval of £0.495m for the new Libraries Improvement Fund General Fund capital scheme, which was fully grant funded, to begin in 2024/25 be approved;

(6)       That scheme and spend approval of £0.382m for the new ASC Digital Transformation General Fund capital scheme, which was funded through budget virements from existing capital schemes be approved;

(7)       That the amendments to the HRA Capital Programme (as set out in further detail in Section 11 of the report and Appendix 7) resulting in a revised HRA Capital Programme net budget of £33.564m for 2023/24 (before the net reprogramming of £2.065m of budgets to future years), £50.050m for 2024/25 and £54.370m for 2025/26 be approved.