Agenda item

To receive a report from the Strategic Director for Finance and Customer Services.

Recommendations

That Cabinet

1.             That the update on the revenue budget financial outturn 2022/23 be noted.

2.             That the Council’s progress on the delivery of the Local Council Tax Support Top Up payment 2023/24 be noted.

3.             That the Council’s delivery of the Household Support Fund 2022/23 be noted.

4.             That Cabinet delegates the decision to allocate and spend the £3m Feasibility Fund to the Strategic Director for Regeneration & Environment in consultation with the Leader of the Council and Assistant Director Financial Services.

5.             That Cabinet approve the capital budget variations as detailed in section 2.7 of the report.

The Assistant Director for Finance outlined that the report gave the Committee early sight of the outturn position. It was noted that a detailed report would go to Cabinet in July 2023. It was noted that the outturn position of £7.3m was an improvement on the projected overspend in February of approximately  £8.3 - 8.5m.

As agreed previously by Council, the overspend would be covered by the use of reserves. It was noted that the financial position had improved significantly from the September’s projection of £18.2m overspend. Savings had been made across all directorates, however there had been a notable reduction in the cost to the Council of placements in Adult Social Care which had contributed to the savings.

It was noted that the overspend in Central Services was due principally to inflation, energy price rises and the impact of the pay award. It was noted that planned savings of £4.8m were on target.

Further details were given of support the Borough's most vulnerable residents with over 14,000 households receiving council tax support. Details were given of the household support fund, free school meal vouchers, energy grant payments and pension support payments.

The report also highlighted a feasibility fund given to all South Yorkshire Councils through the South Yorkshire Mayoral Combined authority to support future planning for capital delivery and growth.

The Chair invited questions and comments from the Board and a discussion on the following issues ensued:

Details were sought on how pay awards would be factored in in future years. it was highlighted that the pay award has been above what was anticipated. There were current discussions on a potential pay award and officers were working through models to assess potential impact. This would be built in to budget projections.

Clarification was sought on the reduced call on reserves of £1.1m and if this could be used elsewhere. it was outlined that this would be used to cover budget pressures and risks that may materialise over the next medium term financial period (three to four years).it was noted that £ 7.3m of reserves had still been drawn down.

The Chair of the Audit Committee outlined that the Audit Committee had considered the outturn position and expressed confidence that the authority was in the best position it could be given market uncertainty. Further details were sought on improvements on the treasury outturn position. It was outlined that careful treasury management was financing the Council's capital programme and debt. The Council had taken out long term loans in 2021-22 when interest rates were low, which were yielding favourable returns and meant that the Council did not have to borrow in the high interest market.

Resolved:

1)    That Cabinet be advised that the following recommendations be supported:

That Cabinet

1.    That the update on the revenue budget financial outturn 2022/23 be noted.

2.    That the Council’s progress on the delivery of the Local Council Tax Support Top Up payment 2023/24 be noted.

3.    That the Council’s delivery of the Household Support Fund 2022/23 be noted.

4.    That Cabinet delegates the decision to allocate and spend the £3m Feasibility Fund to the Strategic Director for Regeneration & Environment in consultation with the Leader of the Council and Assistant Director Financial Services.

5.    That Cabinet approve the capital budget variations as detailed in section 2.7 of the report.