Decision details

The report of the Director of Finance and Transformation presented Members with the current financial position to the end of July 2024 for the 2024/25 Financial Year, in accordance with the Borough Council’s Financial Procedure Rules.

Since a revenue budget of £11,671,480 was set by the Council in February 2024, a number of Cabinet and committee decisions had been taken (as set out in Annex 1) with a net impact of a slight reduction of £3,192 on the revenue budget.

Budgetary Control Monitoring Statements for Salaries and Incomes to the end of July 2024 were attached for information at Annexes 2 and 3 respectively, which reflected an underspend of £69,750 against the current salary estimates proportioned to the end of July 2024 and an actual which was £26,345 less than the apportioned income estimate for the same period.

With regard to investment income, both Core and Cashflow funds were shown above the proportion of the original estimates due to continued high base rates which, however, were not anticipated to continue in the long term.

Areas identified as variations to the original estimate as of the end of May 2024 included service fee to the Tonbridge and Malling Leisure Trust, which was below the estimate thanks to the energy efficiency measures and savings, and expenditure on temporary accommodation, which was an overspend above the estimate due to higher than expected level of clients and increasing accommodation costs.

Furthermore, capital expenditure to the end of July 2024 was detailed in Annex 4.

With regard to the savings target as identified in the Medium Term Financial Strategy, Members acknowledged that challenge was still ahead in identifying options to close the overall funding gap of £1.7m despite that the first tranche target of £305,000 to be achieved by April 2025 had already been exceeded.  It was therefore suggested that options be invited from members of the three Scrutiny Select Committees and the Overview and Scrutiny Committee for evaluation, and this was supported by the Cabinet.

RESOLVED:  That

(1)          as at the end of July 2024, a net favourable variance of circa £291,000 when compared to the proportion of the 2024/25 budget as shown in paragraph 1.6.1 be noted;

(2)          the potential issues surrounding the impact of the current client levels, cost of temporary accommodation and debt recovery within the revenue budget for Homelessness Accommodation be noted;

(3)          the current business rate pool position, as at the end of July 2024 as set out in paragraph 1.7.2, be noted;

(4)          the current spend on Capital Projects for 2024/25 be noted;

(5)          the current position of the Savings Target be noted; and

(6)          Members of the three Scrutiny Select Committees and the Overview and Scrutiny Committee be invited to propose options for evaluation in the forthcoming months to assist in bridging the current funding gap.