Lead Member – Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer – James Walton, Executive Director of Resources

RESOLVED:

3.1. To note that the position set out in the report reflects the best information available after the first 4 weeks of the year and hence considerable uncertainty in these early estimates.

3.2. To note that at the end of Period 1 (30th April 2024), the indicative level of savings delivery is £24.974m (42%), resulting in a projected spend over budget of £13.884m for 2025/26.

3.3. To note the control corridor that the Council will be working to for 2025/26 is as follows: Adverse £39.700m overspend Central £13.884m overspend Favourable £1.422m overspend

3.4. To note the projected General Fund Balance of £0.393m for 31 March 2026 if the projected spend over budget is realised

The Portfolio Holder for Finance introduced the report of the first four weeks of the financial year, which provided an early view of the financial position the Council would be managing in the year ahead.  More would become known as the Period 2 and 3 reports became available.  He referred to the recent budget reallocation alongside a significant reorganisation and the enormous challenge of delivering in year savings of £60m in the face of increasing demand.  All Cabinet Members and budget holders would be asked to scrutinise budgets with urgent steps needed to reduce overspend and improve reserves. 

RESOLVED:

3.1. To note that the position set out in the report reflects the best information available after the first 4 weeks of the year and hence considerable uncertainty in these early estimates.

3.2. To note that at the end of Period 1 (30th April 2024), the indicative level of savings delivery is £24.974m (42%), resulting in a projected spend over budget of £13.884m for 2025/26.

3.3. To note the control corridor that the Council will be working to for 2025/26 is as follows: Adverse £39.700m overspend Central £13.884m overspend Favourable £1.422m overspend

3.4. To note the projected General Fund Balance of £0.393m for 31 March 2026 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 Executive Director – Resources summarised the period 1 report which gave a very early view of the Council’s financial position and highlighted savings of £60m, a projected overspend of £13.884m and forecast a small positive general fund balance of £349,000 at year end.  It was noted that an authority of this size should have a have a general fund balance of between £10m to £20m

During discussion of the report, members emphasised the need for continued openness and early access to financial reports to allow scrutiny committees and members to identify issues and contribute to solutions in good time before cabinet decisions were made. The offer to make reports available via the Members Gateway as soon as they were ready was welcomed. 

Challenges around delivery of non-statutory services; contract arrangements, budget constraints and external factors outside of the control of the council were discussed.   It was noted that effective communication strategies would be needed to manage public expectations and explain the rationale behind financial decisions, such as revenue-generating measures that may initially be unpopular but were necessary for financial stability.

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The report was noted and it was agreed that continuous monitoring and early action on emerging issues would be crucial for effective budget management.