Issue - meetings

Report by the Strategic Director of Finance and Customer Services.

Recommendations

That Cabinet:

1. Note the revenue outturn position for 2024/25.

2. Note the budgeted transfer to HRA reserves increased by £4.4m following the revenue and capital outturn positions.

3. Note the carry forward of the combined surplus schools balance of £  ...  view the full agenda text for item 23

Consideration was given to the report which outlined the final revenue and capital outturn position for 2024/25. The Council set a balanced budget position for 2024/25 as part of the Budget and Council Tax Report 2024/25 approved at Council 28 February 2024. A Revenue Budget of £326.1m was set for  ...  view the full minutes text for item 23

Report by the Strategic Director of Finance and Customer Services.

Recommendations

That Cabinet:

1. Note the revenue outturn position for 2024/25.

2. Note the budgeted transfer to HRA reserves increased by £4.4m following the revenue and capital outturn positions.

3. Note the carry forward of the combined surplus schools balance of £2.3m in accordance with the Department for Education regulations.

4. Note the reserves position set out in paragraphs 2.52 to 2.57.

5. Note the capital outturn, funding position and programme variations as set out in paragraphs 2.58 to 2.91.

6. Approve the capital budget variations as detailed in section 2.79 to 2.82 of the report.

7. Note the position on CRSTS Revenue Grant as set out in paragraphs 2.92 to 2.94 and delegate the decision to allocate and spend the remaining grant to the Assistant Director Planning Regeneration and Transport in consultation with the Section 151 Officer and the Cabinet Member.

At the Chair’s invitation the Cabinet Member for Finance and Community Safety introduced the report noting the following:

·       It presented the Council’s final revenue, capital, HR, and school outturn position for the financial year 2024–25.

·       It was the final report in a series of financial monitoring updates provided to Cabinet throughout the year.

·       The Council had set a revenue budget of £326 million.

·       The four-year capital programme was set at £508 million.

·       The Council had faced significant demand and market pressures, particularly in: Adult Social Care and Home-to-School Transport

·       Those pressures were compounded by inflation and broader economic challenges, which had increased the Council’s base costs.

·       In December 2024, the Council forecasted an overspend of £3.1 million.

·       The final outturn showed a reduced overspend of £0.3 million, representing a £2.8 million improvement.

·       This improvement was attributed to:

§  Additional savings delivered by service areas.

§  Maximised grant applications.

§  Increased income.

§  Treasury management savings.

• The £0.3 million overspend was funded through the use of reserves.
• The capital programme experienced slippage, with an underspend of £31 million against the budget.
• This was a significant improvement compared to the £140 million delay in the previous year.
• The Council continued to review its operational and non-operational assets.
• The aim was to rationalise the estate and ensure efficient use of resources.

The Chair invited members of the Overview and Scrutiny Management Board (OSMB) to raise questions and queries on the points raised earlier.

Councillor McKiernan queried a line in the budget showing a negative £2.8 million under “Unallocated Flood Alleviation” for 2027–28, asking if money was being removed from the budget.  The Assistant Director Financial Services said it appeared to be a reallocation issue. The unallocated fund was a central pot for future flood schemes. The negative figure likely reflected partial allocation to specific schemes. He promised to double-check the figures.

Councillor Yasseen raised a recurring concern about the consistent overspend in Children and Young People’s Services (CYPS) over the past decade. Asking when the Council would accept this as the true cost of the service and adjust the budget accordingly. The Assistant Director Financial Services acknowledged the consistent overspend but noted that total CYPS spending had been reducing due to savings. Rotherham had historically been a high-spending authority in this area. The Council was waiting for the full rollout of the residential programme before considering a budget reset. It was clarified that a contingency was in place for 2025–26.

In a follow-up question Councillor Yasseen expressed concern that CYPS savings were backloaded in the financial plan, making them harder to achieve. The Assistant Director Financial Services agreed that backloading savings was risky. The Council had improved its approach to savings planning in recent years, applying more scrutiny and starting earlier. Most new savings had been delivered, but legacy pressures remained.

Councillor Yasseen asked a further question regarding plans to replenish reserves after recent usage. The Assistant Director Financial Services indicated that the Council had used reserves minimally and strategically. Thanks  ...  view the full minutes text for item 19