Agenda item

In accordance with the Council’s Financial Procedure Rules this report informs Members of the 2023/24 Financial Outturn and current financial position to the end of May 2024 for the 2024/25 Financial Year.  It also gives details of the savings identified to date against the current year’s savings target of £305,000 and asks Cabinet whether it would wish officers to prepare for a budget consultation in the lead up to the 2025/26 budget.

(Decision Notice D240073CAB)

The report of the Director of Finance and Transformation presented Members with the 2023/24 Financial Outturn and the current financial position to the end of May 2024 for the 2024/25 Financial Year, in accordance with the Borough Council’s Financial Procedure Rules.  It also provided details of the savings identified to date against the current year’s savings target of £305,000 and sought advice from the Cabinet on a budget consultation in the lead up to the 2025/26 budget.

A detailed revenue and capital outturn position for the year 2023/24 was provided in the Revenue and Capital Outturn Booklet attached at Annex 1.  Members were pleased with the positive revenue position for 2023/24, reported as a contribution to the Borough Council’s General Revenue Reserve of £1,304,159 after taking into account the additional reserve movements as set out in 1.1.10 of the report.  Details of the movements in reserve balances as at 31 March 2024 were set out in Annex 2 and a summary of the decisions taken by Cabinet and Committees with budget implications since the revenue budget was approved by Council in February 2024 to the end of May 2024 was attached at Annex 3.

Budgetary Control Monitoring Statements for Salaries and Incomes to the end of May 2024 were attached for information at Annex 4 and Annex 5 respectively.  The 2024/25 revenue budget position was summarised in 1.7.1 of the report, which reflected a favourable net variance of £142,438 as at the end of May 2024.

At the request of the Director of Street Scene, Leisure and Technical Services and under the Constitution’s Financial Procedure Rule 13.3, consideration was given to a virement of £60,000 in order to support the recommissioning of the Waste contract in 2027.  It was noted that the £60,000 was achieved as a saving to the current year’s budget due to the lower than anticipated inflation rate on the Street Cleansing, Refuse and Recycling Contract and this approach was supported by Members.

With regard to Business Rates monitoring, particular reference was made to the variation of £642,000 below the original estimate of an overall net income of £6,184,366, however, the delay in one business property in the Panattoni Park being rated by the Valuation Office due to the complexity of the assessment was noted and Members were made aware that the rates bill would be backdated as appropriate.

In terms of progressing towards the savings target of £1.7m as identified in the Borough Council’s Medium Term Financial Strategy (MTFS), Members were pleased to note that the savings target for the first tranche of £305,000 to be achieved before 1 April 2025 had been exceeded by approx. £409,000, therefore the remaining tranches for the savings target would need to be adjusted accordingly to take into account the additional savings and growth as identified in the report and any increased budgetary pressures above those identified in the 2024/25 MTFS.

Finally, having duly considered the recommendation from the External Auditors, Grant Thornton, to engage key stakeholders to determine local priorities for resources or opportunities for savings, Cabinet were content with their existing rigorous approach to decision making and the positive financial performance of the Borough Council and therefore did not consider it necessary to undertake a specific consultation leading up to the 2025/26 budget, although it was noted that they would keep the recommendation in mind.

RESOLVED:  That

(1)          the year end position for 2023/24 be noted and the reserve movements as shown in paragraph 1.1.10 of the report be endorsed;

(2)          the virement of £60,000 proposed by the Director of Street Scene, Leisure and Technical Services in respect of support for the recommissioning of the Waste contract in 2027, as set out at paragraph 1.6.2 of the report, be approved;

(3)          as at the end of May 2024, a net favourable variance of circa £142k when compared to the proportion of the 2024/25 budget, as shown in paragraph 1.7.1 of the report, be noted;

(4)          the current business rate pool position as at the end of May 2024, as set out in paragraph 1.8.2 of the report, be noted;

(5)          the current progress on the current savings target of £1.7m, as set out in paragraph 1.9.4 of the report, be noted; and

(6)          there be no budget consultation to be planned in the lead up to the preparation of the 2025/26 budget.