Purpose

A report produced by
the Council's s151 Officer to provide an assessment on the 2024-25
Budget Proposals and forecast reserve position.
 

Content

Resolved –
 
That
it be recommended to Council that:
 

(1)          
That Members have regard to Document
“AP” in setting the budget, and in particular note the
conclusions that provided that
:

 
·       the current and
planned actions are successfully concluded ie that the emerging financial strategy is agreed
and implemented in full;
 
·       the Government
supports the Council with a “minded to” Capitalisation
Direction and will agree to do so in future years;
 
·       the
recommendations in Document “AP” are agreed and
actioned in full;
 

·       then,
in light of a positive response from
Government, the overall estimates are sufficiently robust for the
Council to set a balanced budget for 2024/25.
 

(2)          
That Members agree:
 

·       that the level of
general reserves is inadequate at £33m and that reserves need
to replenished
 

·       that there is
accordingly no planned use of reserves to support the 2024/25
budget;
 

·       to required
implementation in full of the emerging financial strategy
ie that the Council:

 
·      
identifies an estimated £40m of revenue savings for
2025/26;
·      
identifies assets to be sold to generate capital receipts;
·      
undertakes a review of the capital programme;
·      
considers increasing income;
·      
operates expenditure control panels as set out in the report
from 1 April 2024;
·      
undertakes a full review of financial management and finances of
the Council;
·      
invests in core functions necessary and subject to business
cases;

 

·       any non delivery of planned 2024/25 revenue savings
will need to be absorbed within existing cash limited Departmental
budgets.

(3)          
That Members note:
 

·       the assessment of
the current financial position of the Council;
 
·       that this
assessment is the result of emerging and recent work.  The
situation will change and the estimated
financial position and solutions will require continual development
and refinement and will likewise vary as the year
progresses;
 
·       the s151 officer
is not minded to issue a s114 notice at
this point working on the basis that the above assumptions will be
supported and seen through on time and in full;
 

·       given the
extremely challenging financial situation the Council finds itself
in, which it has in recent months started to address, if the
recommendations are not agreed, or if the assumptions are not
delivered as assumed then very serious consideration will be given
to the issuing of a s114 notice

 

·       that the 2024/25
savings are being reviewed for deliverability;
 

·       as with all
budgets there is the potential for amendments to be proposed/agreed
which could change the overall package of proposals. In that
respect, it should be highlighted that this statement would have to
be amended if a decision was proposed that leads to the
Council’s reserves reducing below their recommended General
Fund balance level. In addition, any other amendments would be
considered against the scale of the overall budget and depending
upon the extent and nature, may result in a revised
statement.
 
To be actioned
by: Director of Finance
 
Overview and Scrutiny Committee: Corporate
 
(Andrew Cross –
01274 436823)