Lead Member – Councillor Gwilym Butler – Portfolio Holder for Finance, Corporate Resources and Communities

Lead Officer – Ben Jay

RESOLVED:

That Cabinet Members:

1.     Noted that the position set out in the report reflects the best information available after the first 4 weeks of the year (with c90% of the year remaining), and hence considerable uncertainty in these early estimates which will be taken forward as a ‘floor’ position. P2 will be expected to help set out a ‘ceiling’ position, resulting in a ‘control corridor’ which can be considered in future reports.

2.     Noted that at the end of Period 1 (30th April 2024), the indicative level of savings delivery is £47.907m (77%), resulting in a projected spend over budget of £29.006m for 2024/25.

3.     Noted the projected General Fund Balance of £9.815m for 31 March 2025 if the projected spend over budget is realised.

The Portfolio Holder for Finance, Corporate Resources and Communities presented the report which members noted was the first of its kind to provide early insight into the year ahead. He explained the projected overspend of 29 million and the contingency plan of using reserves.

Members noted that the savings plans that were started in the last financial year should start to be realised in this financial year. Further detail and clarity would be provided in the next periods.

The finance and transformation teams were thanked for their work, together with the Portfolio Holder for bringing the report forward.

Concern was raised regarding the projected revenue outturn by service and the number of comments about 'in development’ for plans to address the £62million savings. This amounted to over £1million per week and now being in June, targets have not been met. There was also concern regarding a shortfall of £10 million for capital receipts.

The Portfolio Holder responded and advised that at the end of April, which was six weeks ago, there was only 23% of savings which were undefined, which is around £14.3million. However, there was a contingency plan, and they will try to deliver as much of the savings as possible this year.

RESOLVED:

That Cabinet Members:

1.     Noted that the position set out in the report reflects the best information available after the first 4 weeks of the year (with c90% of the year remaining), and hence considerable uncertainty in these early estimates which will be taken forward as a ‘floor’ position. P2 will be expected to help set out a ‘ceiling’ position, resulting in a ‘control corridor’ which can be considered in future reports.

2.     Noted that at the end of Period 1 (30th April 2024), the indicative level of savings delivery is £47.907m (77%), resulting in a projected spend over budget of £29.006m for 2024/25.

3.     Noted the projected General Fund Balance of £9.815m for 31 March 2025 if the projected spend over budget is realised.

To scrutinise financial performance at Period 1 and identify issues that may require further investigation by an overview and scrutiny committee.

REPORT TO FOLLOW

The Portfolio Holder for Finance, Corporate Resources and Communities introduced the report and provided an overview of the changes that had been made to the way that financial information was reported. The Council were now able to get more up-to-date information on a monthly basis and which assisted in making better decisions.

Members acknowledged the amount of learning that had taken place in the last financial year and confidence building as some of these predicted savings could not be delivered within the financial year and will take one or two years. Confidence was expressed that some of the foundations put in place in the last financial year would start to come to fruition in this financial year.

Concerns were raised about the use of the term 'in development' in the report, and whether the savings were real or estimated. The Executive Director of Resources advised that the term 'in development' was used as a reasonable compromise, and that there is an ongoing organisational wide piece of work to deliver the savings.

A query was raised regarding the capital receipts and an update was requested. The Executive Director of Resources advised that there was an early expectation that they would be looking at around £30 million worth of capital receipts and that there were plans in place to deliver that. He mentioned that they would be able to provide updates on capital receipts delivery in future period monitors.

A further query was raised about the difference between cuts and efficiencies, and Members were advised that the team were redesigning the way the organisation works to deliver the relevant outcomes. 

It was noted that it was important to focus on pivotal measures and not be overwhelmed with too much information.

RECOMMENDED:

That Members noted the report.