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

Lead Officer - Ben Jay

RESOLVED

3.1. To note that the Period 5 position (as at the end of August) forecasts indicative savings delivery of £52.042m (58%) and a projected spend above budget of £37.262m for 2024/25.

3.2. To note the projected General Fund Balance of £1.559m arising if no further action were taken.

3.3. To note and endorse the actions achieved and planned (para 2.4 and 2.5)

3.4. To require that the Chief Executive and Chief Officers urgently take all possible action to reduce spending between October and March, targeting a significant reduction in forecast spending to bring the outturn in line with the budget agreed by Council in February

The Portfolio Holder for Finance, Corporate Resources and Communities presented the report which provided the latest financial projection for 2024/25. It highlighted a likely (central) projection of £37.2m overspent, within a potential range between a more favourable projection leading to a £22.3m overspend, up to a more adverse projection leading to a £73.75m overspend.

Members noted the projected overspend is primarily due to the under-delivery of savings, with a current shortfall of £37.9 million, and overspending in social care areas, including £6.8 million in children's services and £4 million in adult care.

Members thanked the Portfolio Holder and officers for their work in producing the monthly reports.

Concern was expressed with regards to the projected level of reserves at the end of the financial year.

The meeting was adjourned briefly due to technical issues.

Members queried the strategic risk assessment which rated the likelihood of containing expenditure as medium and not high, which had been raised at the audit committee in September. Members were advised that the strategic risk was updated regularly and is now rated as high.

In response to a query, the Executive Director for Resources informed members that should a decision regarding cancellation of the North West Relief Road ever come about, officers would  review and consider what the implications of that would be within this financial year. 

Concerns were raised about the reliance of children's services on key support services like HR and legal, particularly given the impact of the council's redundancy program.

Members expressed appreciation for the collaborative efforts in managing the budget and the need for continuous sharing of financial information.

RESOLVED

3.1. To note that the Period 5 position (as at the end of August) forecasts indicative savings delivery of £52.042m (58%) and a projected spend above budget of £37.262m for 2024/25.

3.2. To note the projected General Fund Balance of £1.559m arising if no further action were taken.

3.3. To note and endorse the actions achieved and planned (para 2.4 and 2.5)

3.4. To require that the Chief Executive and Chief Officers urgently take all possible action to reduce spending between October and March, targeting a significant reduction in forecast spending to bring the outturn in line with the budget agreed by Council in February