Agenda item

A presentation will be given in respect of the Corporate Financial Monitoring Report for Quarter 3 2024-2025, with reference to the report submitted to Cabinet on 11^th March 2025.

Contact: Kevin Mulvaney – Service Director Finance

Kevin Mulvaney, Service Director Finance presented the Corporate Financial Monitoring Report for Quarter 3 2024-2025, with reference to the report submitted to Cabinet on 11^th March 2025.

The Portfolio Holder for Finance and Regeneration, Councillor Graham Turner, was present and introduced the item; he advised that there had been a positive movement in the Council’s spending position.

The report set out:

·       The revenue headlines

·       Revenue monitoring, with a breakdown across each directorate;

·       Key pressures on each directorate and mitigating actions

·       Analysis of Reserves

·       Housing Revenue Account position, variances and revenue pressures

·       Direct Schools Grant headlines including pressures and mitigations

·       Collection Fund

·       Position in respect of the Capital Budget and monitoring for each directorate.

·       The Medium Term Capital Plan;

·       Prudential and treasury management indicators; and

·       An update on savings delivery across all directorates and the Housing Revenue Account (HRA).

The following points were highlighted:

·       The projected overspend of £9.9 million revenue overspend in respect of the Council’s General Fund, which was in line with the Quarter 2 position.

·       An overview of the budget variances from Quarter 2 for each Directorate.

·       There was an expectation that the position would improve by outturn.

·       The improving position in terms of the Housing Revenue Account (HRA), with a reduced overspend of £1.9 million and an expectation that this would reduce further by outturn.

·       The Direct Schools Grant position remained the same as Quarter 2.

·       Capital was constantly revised to reflect slippage, with a further £33 million slipped into future years. Adjustments to the Capital Plan arising from the approved budget amendments would be reflected in the outturn report.

Questions and comments were invited from Committee Members, with the following issues being covered:

·       In respect of the future approach, it was explained that, for 2025/26, the decision had been taken to deal with the pressures by funding many of the overspends and it was therefore expected that the number of variations reported would be lower next year.

·       In respect of the variance in the Educational Psychology budget, the service was working to improve performance in respect of care plans and additional money had been put in for 2025/26 which would reduce the chances of an overspend. In relation to the relative cost of the use of in-house and external resources, it was noted that vacancies in this area were not held and recruitment did take place where possible.

·       In respect of the impact of the rise in Employer’s National Insurance on health and social care budgets; the Executive Director for Adults and Health was currently in negotiation with care providers to agree fee uplift rates and these should reflect the money put in to help fund those cost increases. The impact would be clearer after the first quarter of 2025/26.  

·       In respect of the balancing of fiscal sustainability with the demand for services; significant additional provision had been made for children’s and adult social care in 2025/26, and the updated Medium Term Financial Plan would reflect the projections for the next 3 to five years when it was submitted to Cabinet in the Autumn. Each Directorate had its own specific savings plans, agreed as part of the budget, which would be tracked on quarterly basis, and tight controls would remain in place on spend and vacancy management in the first quarter.

·       In terms of sustainability, the Council Plan set out some additional priorities, including ‘getting the basics right’, and over £50 million had been put in to deliver the range of core services for all residents. The savings target of £11 million of new savings was a lot lower than in recent years. There was confidence in the approach, which would be reviewed after Quarter 1, and Scrutiny would continue to be updated on the position throughout the year.

·       Information in relation to the numbers of redeployments associated with the restructure of the Parks and Greenspaces Team could be provided to Members after the meeting. Assurance was given that all possible efforts were made to mitigate the impact of any redundant posts.

·       In respect of contingency arrangements for winter maintenance and road-gritting the priority/primary routes would always be gritted, as a legal obligation, and funding found to do so if necessary.

          RESOLVED -

(1)           That the Portfolio Holder for Finance and Regeneration, the Chief Executive and the Service Director, Finance be thanked for attending the meeting to update the Committee.

(2)           That it be noted that financial monitoring reports will continue to be submitted to the Committee on a regular basis and that Lead Members will pick up on any items within the remit of their Panel that may require further scrutiny.

(3)           That additional information be provided for Members in respect of the redeployment of staff associated with the restructure of the Parks and Greenspaces Service.