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 £9.5m.

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 updated Capital Programme.

4.    Approve the proposed use of the UK Shared Prosperity Fund grant 2022/23 and delegate authority to the Assistant Chief Executive in consultation with the Leader of the Council to determine any revised and final allocations as required.

Consideration was given to the report which set out the financial position as at the end of November 2022 and was based on actual costs and income for the first 8 months of 2022/23 and forecast for the remainder of the financial year.

The report highlighted a proposed overspend of £9.5m for the financial year.  Short term savings had been identified to mitigate the impact of this overspend with improvements being made across the Council.

The Strategic Director of Finance and Customer Services explained that the overspend was not a sustainable position for the Council so proposals had been provided to assess how it could be addressed through short term savings.  Those proposals were operational savings that did not have a large impact on the Council’s services but would be manageable in the short term.  Aspects such as holding a vacancy open for longer, where possible and identifying areas that had been funded out of the base budget which matched the conditions associated with some grant funding elements.

During discussions it was noted that the pressures remained substantial.  It was explained that it has been an ongoing process to understand the allocation and spending requirements of the UK Shared Prosperity Fund.  The first year’s allocation would be used across a number of schemes, including warm welcome spaces, local business centres and business support and the Children’s Capital of Culture, in particular those providers who were providing opportunities for young people.

Resolved: That Cabinet:

1.    Noted the current General Fund Revenue Budget forecast overspend of £9.5m.

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

3.    Noted the updated Capital Programme.

4.    Approved the proposed use of the UK Shared Prosperity Fund grant 2022/23 and delegate authority to the Assistant Chief Executive in consultation with the Leader of the Council to determine any revised and final allocations as required.