Issue - meetings

A report providing analysis and commentary on the financial position of the organisation at the end of the financial year 2023/24.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader, Finance and Property) summarised the published report, noting that 2023/24 had been a challenging financial year for the Council with significant economic uncertainty and higher than expected levels of inflation and interest resulting in additional in-year costs.  Demand in children’s and adults’ social care services, Special Educational Needs and Disabilities (SEND) and for home to school transport had continued to grow. The Council had overspent and the residual net overspend was £7.314 which, at 1.95% of the net revenue budget, was within the 2% tolerance set for an authority of this Council’s size and complexity.  Overall, £12.846m of planned savings were achieved (84.75%) and £175.518m capital expenditure was incurred in 2023/24 with the most significant investment made in Education (£65.879m) building new schools and extending existing ones.

Councillors Jerry Roodhouse and Sarah Feeney expressed concerns regarding the increasing costs of children’s placements.  In response, Councillor Butlin explained that the Council continued to invest in its own children’s homes.  In response to a question from Councillor Feeney, he acknowledged that pay structures in the private sector had an impact on staff retention and ways to attract and retain staff were being considered.

Resolved

That Cabinet:

1.     Notes the net spend in 2023/24 and the consequent residual net revenue overspend of £7.314m 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 to the report;

3.     Notes the delivery of £12.846m (84.75%) savings in 2023/24, a shortfall of £2.312m against the target, as set out in Section 4 of the report;

4.     Approves the drawdown of £0.227m from Earmarked Reserves to support the delivery of the Council Plan in 2024/25, as outlined in paragraph 6.9 of the report and Appendix D to the report;

5.     Approves the drawdown of £1.598m from the Revenue Investment Funds to support the delivery of the Council Plan in 2024/25, as outlined in Section 5 of the report and Appendix C to the report;

6.     Notes the capital spend in 2023/24 of £175.518m; and

7.     Approves the reprofiling of £43.496m Services capital spend from 2023/24 into future years.