Agenda item

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

That Cabinet

1.          Note the current General Fund Revenue Budget forecast overspend of £7.7m.

2.          Note that actions will continue to be taken to reduce the overspend position but that it is likely that the Council will need to draw on its reserves to balance the 2022/23 financial position.

3.          Note the Capital Programme update.

Consideration was given to the report which set out the financial position as at the end of May 2022 and was based on the actual costs and income for the first 2 months of 2022/23 and forecast for the remainder of the financial year.

Members noted that financial performance was a key element within the assessment of the Council’s overall performance framework and was essential to achievement of the objectives within the Council’s Policy Agenda. The report was the first in a series of monitoring reports for the 2022/23 financial year which would continue to be brought forward to Cabinet on a regular basis.

As at May 2022, the Council estimated a Directorate overspend of £7.7m for the financial year 2022/23. Whilst the core Directorates services had a forecast year end overspend of £6.7m on the General Fund, there was also £1m of estimated unbudgeted cost resulting from the wider financial impact of the war in Ukraine, inflation and energy price increases. This additional financial challenge was being considered as part of the Council’s ongoing Medium Term Financial Planning as the impact would reach beyond the current year.

Given the current uncertainty in terms of the level that inflation may reach and precisely when and also the inevitable pressure on pay levels, it was not possible to be precise about the full financial impact at the present time. The next report to Cabinet was due in September and would present a much clearer picture of the likely impact.

Resolved:-

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £7.7m.

2.    Note that actions will continue to be taken to reduce the overspend position but that it is likely that the Council will need to draw on its reserves to balance the 2022/23 financial position.

3.    Note the Capital Programme update.