Issue - meetings

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which set out the final financial position for the Council for 2022/23, both revenue and capital and provided an analysis of the variances, both under and overspending. It was noted that the Treasury Management Strategy appended to the report would be presented to Full Council, in accordance with regulation.

Members noted that at quarter 3 the revenue budget overspend was forecast to be £3.958m therefore the financial position has improved by £1.629m during the last quarter of the financial year. The largest individual departmental overspend was on Children and Young People around agency costs for social care and safeguarding, an increase in demand for children’s residential placements including Independent Foster Agency costs and increased costs for home-to school transport.

Members discussed the challenging context nationally and noted that capital developments were progressing and would be delivered but required reprogramming. Councillor Lucy Smith highlighted the challenges in Children’s Services, and advised on a number of initiatives to improve outcomes for young people would secure future savings.

Decision:

Cabinet:

1.    Noted the 2022-23 final overspend on the revenue budget of £2.329m, against a budget of £178.922m. It should be noted that this budget, whilst mainly funded from Council Tax and Business Rates income, also included funding of £19.387m from earmarked reserves and a £1.767m contribution from General Fund Balances;

2.    Noted that a £2m additional contribution was made to the pooled fund in 2022- 23, all contributions now balance to the Section 75 agreement across the term;

3.    Noted the final position on the collection fund was a surplus on Council Tax and a deficit on Business Rates;

4.    Noted that the final position on reserves and balances is £104.241m at the end of 2022/23 (excluding schools balances). The £104.241m is split between £22.701m general reserves and £81.540m earmarked reserves;

5.    Noted the cumulative DSG deficit position of £18.601m and the reduction of £2.872m during the 2022/23 financial year;

6.    Noted the overall school balances are £4.731m which includes schools with deficit balances;

7.    Noted the Housing Revenue Accounts reserve balance of £9.176m at the end of the 2022/23 financial year and the use of £0.666m during the 2022/23 financial year;

8.    Noted expenditure of £48.390m on Capital Programmes during the year;

9.    Further approved a capital budget carry forward of £17.390m; and

10.Noted the final treasury management report and commend this to Full Council.

Reasons for the decision:

To note the final financial position subject to external audit for the Council for 2022/23.

Other options considered and rejected:

N/A.