The report sets out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account as at the end of Quarter 1 2024/25 as well as performance against the measures of success published in the Council’s Corporate Plan.

The Committee considered a report setting out the projected revenue and capital outturn positions for 2024/25 for both the General Fund and the Housing Revenue Account (HRA) as at the end of Quarter 1 and the performance against the measures of success set out in the Council’s Corporate Plan.  The following documents were attached to the report:

·         Summary of the General Fund Budget and Forecast

·         Brighter Futures for Children (BFfC) Budget Monitoring Report Quarter 1

·         Recovery Plan Quarter 1

·         Savings Tracker Quarter 1

·         General Fund Capital Programme

·         Housing Revenue Account (HRA) Capital Programme

·         Corporate Plan Performance Measures Quarter 1

·         Corporate Plan Projects Quarter 1

The report noted that the Council was currently experiencing significant financial pressures over and above those provided for as part of the budget setting process.  These needed to be managed carefully in order to avoid putting the financial stability of the Council at risk.  Net budget pressures totalling £13.068m had been identified during Quarter 1 and the report summarised the main financial pressures in the areas of homelessness, income shortfalls in Planning, Transport & Public Protection, children’s social care, corporate budgets and risk of undelivered savings.  The Corporate Management Team had taken urgent action to address the situation and work had so far identified £8.081m of in-year mitigations which reduced the overall forecast net pressures to £4.987m.  Work was ongoing to identify further savings, however the position remained challenging and a pause on all non-essential expenditure and recruitment had been implemented until the budget had been brought back in line.  Further savings proposals requiring Committee approval would be submitted to the meeting of Policy Committee in October 2024 for consideration.

The report explained that the General Fund Capital Programme had an Original Budget of £95.232m approved as part of the 2024/25 Budget. This budget had been revised to £109.005m following approved adjustments as part of the Quarter 3 and Quarter 4 2023/24 Performance and Monitoring Reports.  The report sought approval for further adjustments as set out in detail in Appendix 5, includes budget reprogramming between years following a review of schemes by the Capital Programme Board, that would result in a revised approved budget of £96.905m for 2024/25.  At Quarter 1, against the revised budget of £96.905m, the current forecast was a positive net variance of £0.136m related to the Delivery Fund.  Scheme and spend approval was also sought for an additional scheme for the Bereavement Service to build 50 burial chambers at a cost of £0.080m, instead of building approximately six chambers per year.

The report stated that the approved Housing Revenue Account (HRA) budget assumed a drawdown from HRA reserves of £2.582m.  At Quarter 1, the forecast revenue outturn position on the HRA was an adverse net variance to budget of £0.162m. Therefore, a drawdown from the HRA Reserve was forecast of £2.744m rather than the originally budgeted £2.582m.  The HRA Capital Programme had an Original Budget of £47.760m as part of the 2024/25 Budget, which had been revised to £50.050m following approved adjustments as part of the Quarter 3 and Quarter 4 2023/24 Performance and Monitoring Reports.  The report sought approval for further adjustments as set out at in detail in Appendix 6 that would result in a revised approved budget of £45.284m for 2024/25.  At Quarter 1, the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £45.284m.

The report also set out performance against the measures of success published in the Council’s Corporate Plan.  Of the 24 Corporate Plan Performance Measures monitored monthly or quarterly, 37% were currently at or above target (green), 17% within 10% of the target (amber) and 46% were 10% or more off target (red).  Of the 46 Corporate Plan Projects, 7% were currently delivered (blue), 56% are at or above target (green) and 37% within 10% of the target (amber).  The full list of Performance Measures was attached at Appendix 7 and Projects as Appendix 8.

Resolved:

(1)          That it be noted that:

a)    the forecast General Fund revenue outturn position for Quarter 1 was an adverse net variance of £4.987m (Appendix 1), comprising £13.068m of net budget pressures that were partially offset by £8.081m of identified Officer Decision Recovery Plan mitigations which were summarised in Section 4 and set out in detail in Appendix 3;

b)    further Recovery Plan mitigations were in development and those requiring a Member Decision would be brought for consideration via a report to Policy Committee in October 2024;

c)    £3.052m (41%) of savings approved as part of the 2024/25 Budget were on track to be delivered by March 2025. £0.656m (9%) of savings were currently categorised as non-deliverable (red) and £3.760m (50%) categorised as at risk of delivery (amber) (Appendix 4);

d)    the General Fund Capital Programme was forecasting a positive net variance of £0.136m against the proposed revised budget of £96.905m (Appendix 5);

e)    there was a total £3.143m Delivery Fund available for 2024/25 (inclusive of 2023/24 approved carry forwards). At Quarter 1, £3.097m of this funding had been allocated out to approved schemes;

f)     the Housing Revenue Account (HRA) was projecting an adverse net variance of £0.162m as at the end of Quarter 1, which resulted in a forecast drawdown from HRA Reserves of £2.744m rather than the originally budgeted £2.582m;

g)    the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £45.284m (Appendix 6);

h)    the performance achieved against the Corporate Plan success measures was as set out in Section 11 of the report and Appendices 7 and 8.

(2)          That the proposed amendments to the General Fund Capital Programme (as set out in Section 8 of this report and Appendix 5), which would result in a revised Capital Programme budget of £96.905m for 2024/25, £59.499m for 2025/26 and £27.302m for 2026/27, be approved;

(3)          That Scheme and spend approval be given for the Burial Chambers scheme within the Capital Programme as set out in Section 8;

(4)          That the proposed amendments to the HRA Capital Programme (as set out in Section 10 of this report and Appendix 6), which would result in a revised Capital Programme budget of £45.284m for 2024/25, £59.136m for 2025/26 and £18.088m for 2026/27, be approved.