Purpose

s151 Officer Assessment - The report assesses
the robustness of the proposed budget for 2025-26, the adequacy of
forecast levels of reserves and associated risks.

Content

Resolved –
 
That it be recommended to
Council: 
 

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

Ø 
the current and planned actions are successfully
concluded ie that the emerging
financial strategy is agreed and implemented in full;
 

Ø 
the Government supports the Council with a
“minded to” Capitalisation Direction and will agree to
do so in future years;
 

Ø 
the recommendations in this and the other budget
reports are agreed and actioned in full;
 

Ø
reserves continue to be built up as required;

 

Ø
risks are properly and promptly managed;
 

Ø
financial management issues are successfully
addressed;

 

then the overall estimates are sufficiently robust
for the Council to set a balanced budget for 2025/26.
 
(2)      
That Members agree:
 
Ø 
that the level of general reserves be
increased;
 
Ø 
that there is accordingly no planned use of
reserves to support the 2025/26 budget;
 
Ø 
to implementation in full of the financial
strategy ie that the
Council:
 
·        
identifies an estimated £50m of revenue
savings for 2026/27 to 2029/30;
·        
identifies £150m of assets to be sold to
generate capital receipts, and investigates the potential for
more;
·        
undertakes a further review of the capital
programme;
·        
operates expenditure control panels as set out in
the report until at least 2026/27;
·        
continues with its review of financial management
and finances of the Council;
·        
invests in core functions necessary and subject
to business cases;
 
Ø 
any non-delivery of any planned revenue savings
will need to be absorbed within cash limited Departmental
budgets.

(3)      
That Members note:
 
Ø 
the assessment of the current financial position
of the Council;

 

Ø 
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;

 

Ø 
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;

 
Ø 
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;
 
Ø 
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 budget not being in
balance.  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 Area:
Corporate  
                    
(Steven Mair)