Agenda item

A presentation will be given in respect of the Council Financial Outturn and Rollover Report 2024-2025 with reference to the report submitted to Cabinet on 8^th July 2025.

Contact: Kevin Mulvaney – Service Director Finance

Kevin Mulvaney, the Service Director, Finance gave a presentation on the financial outturn and proposals for capital rollover for 2024-2025, with reference to the report submitted to Cabinet on 8^th July 2025.

The Portfolio Holder for Finance and Regeneration, Councillor Graham Turner, was present and introduced the item.

The presentation went through:

·       The revenue headlines.

·       The outturn position with figures for each directorate.

·       The high-level variations for each directorate with an indication of key savings and pressures.

·       Analysis of the directorate variances at outturn.

·       Analysis of General Fund Reserves.

·       Housing Revenue Account (HRA) position at outturn.

·       HRA reserves.

·       Direct Schools Grant headlines and the position in relation to the statutory override and an upcoming consultation.

·       The position on the Collection Fund; Council Tax and Business Rates.

·       Outturn for the Capital Budget including figures for each directorate.

·       Refreshed Capital Plan 2025/26 to 2031/32.

The following points were highlighted:

·       The outturn position had improved to a £5.6 million overspend, down from £9.9 million at Quarter 3 which represented approximately 1.5% of the revenue budget.

·       79% of the target for savings had been delivered.

·       The year-end position on reserves and balances stood at £61 million, with the general reserve maintained at £25 million.

·       Use of the voluntary revenue provision reserve to fund the overspend and create a budget contingency reserve.

·       The review of the Capital Plan to ensure it reflected the ability to deliver.

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

·       The total amount of arrears for Council Tax at the end of March 2025 was £33.8 million, but this went back to the year 2000. It had increased by £6.5 million from the previous year and the bad debt provision had been increased as a result. There could be a number of reasons for the increase; Council Tax had increased by 4.99% and some residents had had difficulty in paying which had contributed, there had also been changes to the council tax reduction scheme, which may have had an impact. Some residents may be behind but would catch up during 25/26.  Provision was in place to assist and advise residents on the support available.

·       The Committee was advised that the Council’s overall target was to recover 98.5% of all Council Tax. Work was undertaken to recover arrears from previous years wherever possible.

·       In respect of the historic DSG deficit, this was a national issue affecting many local authorities. The reform proposals in relation to SEND, to be set out in an upcoming consultation, were not known at this stage but the hope was that these would benefit not just Kirklees but local authorities nationwide. Measures were being taken to reduce the overspend and reduce the in-year deficit to try and alleviate the pressure, but this was an issue that needed to be resolved at national level.

RESOLVED -

(1)      That the Portfolio Holder for Finance and Regeneration and the Service Director, Finance be thanked for attending the meeting and providing an update in relation to the Council’s Financial Outturn and Capital Rollover Report 2024-2025.

(2)      That it be noted that these reports will continue to be submitted to the Committee on a regular basis and that Lead Members will identify any issues within their remit that they consider might require further scrutiny by their respective Panel.