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

Lead Officer - Ben Jay

RESOLVED:

that:

A.    Cabinet Members continue to work closely with the Chief Executive and senior officers to urgently take the necessary actions to improve further the Quarter 2 forecast of a projected spend over budget of £35.095m (30th September 2024), by year end, predominantly focussing on remaining savings or mitigating actions to be delivered in 2024/25.

B.    Cabinet Members discussed the impact of the projected expenditure forecast on the General Fund Balance and note the risk of further service pressures (savings required) in next year if financial performance in the current year is not improved.

The Portfolio Holder for Finance, Corporate Resources and Communities introduced the report which provided a detailed review of the Council’s financial position as at 30 September 2024. He highlighted a slight improvement in the projected overspend, from £38.5m to £35.1m. He gave reassurance that spending boards were in place to monitor spending, and savings were being achieved. Members noted that as the year progressed, a greater proportion of the Council’s spending and income becomes certain, and the risks associated with the diminishing remainder of the financial year also diminishes. Furthermore, estimates from earlier in the year can be revisited and reworked, strengthening the robustness of financial projections.

A query was received regarding the percentage of the Council's total spend on third-party contracts and the percentage of spending reductions achieved in that area. The Executive Director for Resources advised that the overall gross budget was £709 million and the cost of third-party spend was approximately £400 million, but would provide detailed figures after the meeting.

Members inquired about the progress of the sale and leaseback scheme mentioned in the report and the budget overspend in the Place Directorate.

The Executive Director for Resources explained that multiple options for the sale and leaseback scheme were being considered, with confidence that one would be delivered by the end of the financial year.

The Executive Director for Place addressed the Place Directorate's overspend, attributing it to the Veolia contract, property-related issues, and capitalisation.

Members thanked the Executive Management Team and officers for their hard work.

RESOLVED:

that:

A.    Cabinet Members continue to work closely with the Chief Executive and senior officers to urgently take the necessary actions to improve further the Quarter 2 forecast of a projected spend over budget of £35.095m (30th September 2024), by year end, predominantly focussing on remaining savings or mitigating actions to be delivered in 2024/25.

B.    Cabinet Members discussed the impact of the projected expenditure forecast on the General Fund Balance and note the risk of further service pressures (savings required) in next year if financial performance in the current year is not improved.