Issue - meetings

A report providing analysis and commentary on the financial position of the organisation at the end of the financial year 2022/23.

Members received a report which provided an analysis and commentary on the financial position of the Council at the end of the 2022/23 financial year.

Councillor Peter Butlin introduced the report and set the scene with regards to the work undertaken over the last twelve months.  He felt that the Council had performed well despite national and international events, with the finance team reacting well to the challenges.  Councillor Butlin gave an overview of the overspend figures and highlighted that, whilst everyone tried their level best to keep within budget, this was not always possible due to the pressures on services.  He also highlighted the additional income secured by the Legal Team along with additional finances being gained from the investments managed by the Treasury Management Team.

Councillor Jerry Roodhouse thanked officers for the in-depth report.  He raised a concern about the finances in relation to Home to School Transport and the budget for schools in general.  He highlighted the mounting pressures that schools were under and hoped colleagues would join in him lobbying the DSG around this subject.

Councillor Butlin agreed with the frustrations relating to school budgets and reminded Members that the Council did have an excellent team of staff available to support schools in managing their budgets.  He did not feel that education had received the attention from Central Government it should have and the situation for students had been compromised as a result of Covid.

Councillor Butlin proposed the recommendations as laid out.

Resolved to

1)    note the net spend in 2022/23 and the consequent revenue overspend for the organisation at the end of the year;

2)    note the explanations and mitigating actions for variations to budgets, and the implications for the Medium-Term Financial Strategy, as set out in Appendix A;

3)    approve the retention of the surplus of £1.234m in the DSG Deficit Offset Reserve until there is greater certainty about the longer-term direction of travel of spend in Special Educational Needs and Disabilities, as set out in paragraph 2.7;

4)    note the delivery of £9.579m (93.5%) savings in 2022/23, a shortfall of £0.665m against the target, as set out in Section 4;

5)    approve the drawdown of £0.920m from Externally Earmarked Reserves and Directorate Risk Reserves to support the delivery of the Council Plan in 2023/24, as outlined in paragraph 6.5 and Appendix C;

6)    approve the drawdown of £7.624m from the Revenue Investment Funds to support the delivery of the Council Plan in 2023/24 and 2024/25, as outlined in Section 5 and Appendix D;

7)    approve the approach to making good the Communities Directorate Risk Reserve at the end of 2022/23 and for 2023/24 as set out in paragraphs 6.9 to 6.11;

8)    note the capital spend in 2022/23 of £117.352m; and

approve the reprofiling of £2.094m Services capital spend from 2022/23 into future years.