Agenda item

Report from the Strategic Director of Finances and Customer Services.

Recommendations:

That Cabinet:

1.          Note the current General Fund Revenue Budget forecast overspend of £1.2m.

2.          Note that actions will continue to be taken to reduce the overspend position but that it is possible that the Council will need to draw on its reserves to balance the 2023/24 financial position.

3.          Approve the proposed use of the Local Authority Housing Fund (LAHF) should the Council’s bid be successful, as set out in section 2.65.

Consideration was given to the report which set out the financial position

as at the end of December 2023 and forecast for the remainder of the financial year, based on actual costs and income for the first nine months of 2023/24. As at December 2023, the Council Directorates currently estimated an overspend of £9.7m for the financial year 2023/24. This was largely due to demand led pressures on Children’s residential placements and home to school transport as well as the impact of inflationary pressures in the economy, particularly on food prices, and the legacy impact of lockdown restrictions on some directorate’s services, especially in Regeneration and Environment.

However, this was offset by a £5m corporate budget risk contingency held within Central Services, approved within the Council’s Budget and Council Tax Report 2023/24. In addition, further savings from the Council’s Treasury Management Strategy of £3.5m had been generated and taken together, this £8.5m reported underspend in Central Services, reduced the Council’s overall forecast outturn to a £1.2m overspend.

There had been a recent announcement regarding one-off extra funding which was estimated to be £560,000 for the current year which would improve the Council’s position. 

There remained funding uncertainty for the local government sector beyond 2023/24 and 2024/25 as the Local Government Financial Settlement had been only a one year allocation for both these years. The Council would continue to face significant challenges moving forward with the funding of social care. This was illustrated by the volume of Local Authorities across the UK that have recently hit difficult times with a number having to issue S114 notices.

The Cabinet Member for Housing highlighted the recommendation which sought approval to use the Local Authority Housing Fund, should the Council’s bid for £1,366,400 be successful, to support the Council’s existing housing acquisitions programme. Specifically, this would enable the Council to increase the size of its temporary accommodation portfolio by 16 properties in line with the Homelessness Prevention and Rough Sleeping Strategy. If the Council was successful, HRA capital funding would be freed up and reinvested in housing delivery.

Resolved:

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £1.2m.

2.    Note that actions will continue to be taken to reduce the overspend position but that it is possible that the Council will need to draw on its reserves to balance the 2023/24 financial position.

3.    Approve the proposed use of the Local Authority Housing Fund (LAHF) should the Council’s bid be successful, as set out in section 2.65.