Agenda item

Financial Management 2024/25 to 2027/28 - Revenue and Capital Budget Update 2024/25 - February Update

Report of the Executive Director – Corporate Services and Commercial

Minutes:

Further to Minute No. 101of the meeting of the Cabinet held on 6 February 2025 the Committee considered the report of the Executive Director - Corporate Services and Commercial that advised of:

 

(1)

the current position relating to the 2024/25 revenue budget;

 

(2)

the current forecast on Council Tax and Business Rates collection for 2024/25;

 

(3)

the monitoring position of the Council’s capital programme to the end of December 2024 in respect of:

 

·       the forecast expenditure to year end;

·       variations against the approved budgets and an explanation of those variations for consideration by Members; and

·       updates to spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects; and

 

(4)

the latest prudential indicator information for 2024/25 and the current Corporate Risk Register.

 

The Capital Programme 2024/25 to 2026/27 and the Corporate Risk Register – December 2024 were attached as appendices to the report.

 

Members of the Committee asked questions/commented on the following issues:

 

·       the yearly on-going problem with the Children’s Social Care budget due to the increasing demand for services

·       higher than average sickness levels in the Children’s Social Care service

·       the use of Reserves to support the additional in-year budget pressure and reduce the call on the Council’s General Balances; and how, and by what timeframe, the Council’s reserves would be increased to approximately £30m

·       the possibility of having a breakdown by Sefton area of the Disabled Facilities Grants spend of £3,500,000

·       information was sought on whether the Forecast Year-End Deficit (variance to November) of £3.523m as detailed in paragraph 2.3 of the report was included in the budget papers considered by Council on 27 February 2025

·       multi-year local government settlements were to be welcomed

·       it was acknowledged that all local authorities were experiencing budgetary issues associated with adult and children’s social care services

·       the impact of the work of the Commissioner appointed to oversee children’s social care

 

RESOLVED:

 

(A)

That in respect of the Revenue Budget:

 

(1)

the current position relating to the 2024/25 revenue budget be noted;

 

(2)

the actions being taken to refine forecasts and identify mitigating efficiencies to ensure each service achieves a balanced position be noted;

 

(3)

the remedial action plan measures previously approved by Cabinet on 7th November 2024, and as detailed in section 3 of the report, be noted;

 

(4)

the intention to review and release Earmarked Reserves to support the additional in-year budget pressure and reduce the call on the Council’s General Balances, be noted; and

 

(5)

the financial risks associated with the delivery of the 2024/25 revenue budget be noted and that it be acknowledged that the forecast outturn position will continue to be reviewed, and remedial actions put in place, to ensure a balanced forecast outturn position and financial sustainability can be achieved; 

 

(B)

That in respect of the Capital Programme:

 

(1)

the spending profiles across financial years for the approved capital programme (paragraph 8.1) be noted;

 

(2)

the latest capital expenditure position as at 31 December 2024 of £35.517m (paragraph 7.3); and the latest full year forecast of £73.809m (paragraph 7.4), be noted; and

 

(3)

it be noted that capital resources will be managed by the Executive Director - Corporate Service and Commercial to ensure the capital programme remains fully funded and that capital funding arrangements secure the maximum financial benefit to the Council (paragraphs 7.11-7.13).

 

(C)

the forecasts for the Prudential Indicators relating to capital expenditure and financing as at 31December 2024 be noted; and

 

(D)

the latest position relating to key risk management areas be noted.

 

 

 

 

Supporting documents: