Agenda item

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

That Cabinet:-

1.    Note the update on the revenue budget financial outturn 2024/25.

2.    Note the Council’s progress on the delivery of the Local Council Tax Support Top Up payment.

Consideration was given to the report which provided an update to Cabinet on a number of financial matters. The report was provided as an interim update for Cabinet, following on from the approval of the Budget and Council Tax 2025/26 report at Council on 5 March 2025 and in advance of the Financial Outturn 2024/25 report and May Financial Monitoring 2025/26 report to be submitted to Cabinet in July 2025. An update was also provided on the Council’s administration of the Local Council Tax Support Top-Up payments.

The Financial Monitoring Report 2024/25 submitted to Cabinet on 10 February 2025 was based on the financial monitoring position as at December 2024, which outlined that the Council anticipated an overspend of £3.1m. This forecast position was also outlined in the Budget and Council Tax 2025/26 report which was submitted to the same Cabinet meeting and to Council on 5 March 2025. The overspend was to be funded from Reserves as approved at Council as part of the Budget and Council Tax 2025/26 report. However, the report noted that the Council’s intention was to further improve that outturn position in the remainder of the financial year, if possible, to help reduce the call on reserves.

The actual financial outturn position reflected an overspend of £0.3m for the financial year 2024/25. This position included a final overspend of £12.8m across the core directorates services, however, the directorate overspend was partially offset by the planned £6.9m corporate budget risk contingency within Central Services approved within the Council’s Budget and Council Tax Report 2024/25. Taken with savings delivered from the Council’s Treasury Management Strategy, the final underspend in Central Services was £12.5m, which reduced the Council’s overall outturn to a £0.3m overspend. This was an improvement of £2.8m from the December Financial Monitoring reported to February Cabinet, as service areas delivered savings ahead of year-end, maximised grant allocations, improvements in income were recognised and the Council generated further savings in Treasury Management. The main reasons for the improvements in the Directorate outturn position were set out in paragraph 2.1.4 of the report.

Council approved, as part of the Council’s Budget and Council Tax Report on  5 March 2025, continuation of Local Council Tax Support Top Up Scheme to run during 2025/26. The scheme would provide an additional award during 2025/26 of up to £126.12 additional support to low income households most vulnerable to rising household costs, through reduced Council Tax bills. The application of the scheme included all those becoming eligible up to and including 31 March 2026. The 2025/26 scheme had commenced and at the

time the report was written, a total of £1.486m had been awarded across 14,632 accounts, with 12,681 of these accounts being reduced to nil. Those bill payers in receipt of this award had been provided with a Council Tax bill that showed the top up support from the Council along with a letter explaining the reason for the award.

The estimated scheme costs were between £1.7m and £1.9m. As agreed in the Budget Report to Council 5 March 2025, this would be funded by a combination of the Household Support Fund for 2025/26 and the Local Council Tax Support Grant Reserve. The 2024/25 Local Council Tax Support Top Up scheme provided additional support of up to £121.96 to low income households most vulnerable to rising household costs, through reduced Council Tax bills. A total of £1.696m had been awarded across 17,422 accounts with 10,684 being reduced to nil in 2024/25.

The report was considered by the Overview and Scrutiny Management Board (OSMB), who advised that the recommendations be supported.

Resolved:

That Cabinet:-

1.    Note the update on the revenue budget financial outturn 2024/25.

2.    Note the Council’s progress on the delivery of the Local Council Tax Support Top Up payment.