This 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 3 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 the General Fund and the Housing Revenue Account (HRA) as at the end of Quarter 3 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 - Summary of the General Fund Budget and Forecast 2024/25

·         Appendix 2 - Recovery Plan Quarter 3

·         Appendix 3 - Savings Tracker Quarter 3

·         Appendix 4 - General Fund Capital Programme

·         Appendix 5 - Housing Revenue Account (HRA) Capital Programme

·         Appendix 6 - Corporate Plan Performance Measures Quarter 3

·         Appendix 7 - Corporate Plan Projects Quarter 3

·         Appendix 8 - Debt Write-Offs (Exempt information under Paragraph 3 of of Part 1 of Schedule 12A of the Local Government Act 1972, as amended)

The report explained that the overall forecast adverse net variance as at the end of Quarter 3 was £10.618m, an increase of £0.998m from Quarter 2, and summarised the main movements between Quarter 2 and Quarter 3.  The main financial pressures within the overall adverse net variance forecast of £10.618m included increased care packages and new high-cost placements in adult social care operations, homelessness emergency accommodation, income shortfalls in Transport services, Building Control, Planning and Public Protection, and an increase in Children Looked After placement costs.

The report stated that the Quarter 3 forecast was that 5.421m (72%) of savings had been delivered already, £0.130m (2%) of savings were on track to be delivered by March 2025 and £1.917m (26%) of savings were currently categorised as non-deliverable (red).  There was no Corporate Contingency to mitigate against undelivered savings and it was therefore critical that all savings were delivered. The Savings Tracker listing progress against each individual saving was attached to the report at Appendix 3.

The report sought approval for adjustments to the General Fund Capital Programme, which would result in a revised approved budget of £69.591m for 2024/25.  The Programme was set out in detail in Appendix 4 to the report.  At Quarter 3, against the proposed revised budget of £69.591m, the current forecast was a positive net variance of £0.900m. This variance incorporated a £0.934m positive variance for the Delivery Fund, slightly offset by a £0.032m adverse variance on the Hexagon lighting and emergency lighting replacement scheme, and a £0.002m adverse variance on the Hexagon replacement of Public Address System scheme.

The report explained that the revised Housing Revenue Account (HRA) budget assumed a drawdown from HRA reserves of £3.092m.  At Quarter 3, the forecast revenue outturn position on the HRA was an adverse net variance to budget of £0.227m. Therefore, a drawdown from the HRA Reserve of £3.319m was forecast rather than the budgeted £3.092m.  The report sought approval for further adjustments to the HRA Capital Programme, set out in detail at Appendix 5, that would result in a revised approved budget of £33.684m for 2024/25.  At Quarter 3, the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £33.684m.

The report also set out performance against the measures of success published in the Council’s Corporate Plan.  Of the 23 Corporate Plan Performance Measures monitored monthly or quarterly, 35% were currently at or above target (green), 22% within 10% of the target (amber) and 43% were 10% or more off target (red).  Of the 46 Corporate Plan Projects, 9% were currently delivered (blue), 61% were at or above target (green), 28% were within 10% of the target (amber) and 2% were 10% or more off target (red).  The full list of Performance Measures was attached at Appendix 6 and the list of Projects attached at Appendix 7.

Resolved –

            (1)       That the following be noted:

a)    The forecast General Fund revenue outturn position for Quarter 3 of an adverse net variance of £10.618m (Appendix 1), which was an increase of £0.998m from the Quarter 2 position;

b)   The revised forecast delivery of £8.495m against the revised Recovery Plan target of £8.580m as set out in Section 4 and in detail in Appendix 2;

c)    That £5.421m (72%) of savings had been delivered (blue), £0.130m (2%) of savings were on track to be delivered (green) by March 2025 and £1.917m (26%) of savings were currently categorised as non-deliverable (red), as set out in Appendix 3;

d)   That the General Fund Capital Programme was forecasting a positive net variance of £0.900m against the proposed revised budget of £69.591m (Appendix 4);

e)    That there was a total £3.143m Delivery Fund available for 2024/25 (inclusive of 2023/24 approved carry forwards), and at Quarter 3, £3.097m of this funding had been allocated out to approved schemes;

f)     That the Housing Revenue Account (HRA) was projecting an adverse net variance of £0.227m as at the end of Quarter 3, which resulted in a forecast drawdown from HRA Reserves of £3.319m rather than the revised budgeted drawdown of £3.092m;

g)   That the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £33.684m, as set out in Appendix 5;

h)   The performance achieved against the Corporate Plan success measures as set out in Section 13 of the report and Appendices 6 and 7;

(2)       That the write-off of debts be approved, as set out in Section 7 of the report and Appendix 8, relating to Non-Domestic Rates (£606,024.69) and Sundry Debt (£92,597.35);

(3)       That the proposed amendments to the General Fund Capital Programme (as set out in Section 9 of the report and Appendix 4), which would result in a revised Capital Programme budget of £69.591m for 2024/25, £69.349m for 2025/26 and £37.018m for 2026/27, be approved;

(4)       That the proposed amendments to the HRA Capital Programme (as set out in Section 12 of the report and Appendix 5), which would result in a revised Capital Programme budget of £33.684m for 2024/25, £83.794m for 2025/26 and £29.778m for 2026/27, be approved.