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Cabinet RESOLVED;
 
2.1 to note the General Fund
revenue budget outturn is forecast to overspend at financial year
end by £23.9m at Period 3, after the budgeted utilisation of
£38m capitalisation directions requested from the Ministry of
Housing, Communities and Local Government (MHCLG), utilisation of
the £5.0m risk contingency budget and utilisation of
£13.0m corporate earmarked reserves.
 
2.2 to note that all service
directorates have been asked to reduce their net expenditure so
that the annual budget can be balanced at the end of the year. It
should not be underestimated what a challenge this will be against
the background of increased demand pressures which are continuing
to build across local government and increased market prices.
Forecast overspend pressures are also
demonstrated in the Month 2 and Quarter 1 reports published by
other London councils. However, the Council will still strive to
bring its 2024-25 budget into balance including through the in-year
Financial Recovery Plan as set out from para 4.8.
 
2.3 to approve budget
inter-directorate virements from Corporate to service directorates
for non-pay inflation (£15.694m) as set out in the table in
paragraph 4.102.
 
2.4 to note the progress in
Medium Term Financial Strategy (MTFS) savings achievement of
£20.8m (75.1%) against the total savings target of
£27.7m as set out in paragraph 4.124.
 
2.5 to note the work that is
continuing on the Council’s
Transformation Programme as set out from paragraph
4.122.
 
2.6 to note the Housing Revenue
Account (HRA) revenue budget outturn is forecast to overspend by
£2.0m.
 
2.7 to approve the budget
changes in 2024-25 General Fund capital programme budgets totalling
a net increase of £8.5m, which includes adoption of
Reconnecting Croydon (£4.755m funded by government grant) and
the Oracle Improvement Programme (£4.419m funded by earmarked
reserves) as set out in para 4.152.
 
2.8 to note the General Fund
capital programme 2024-25 breakeven forecast against the revised
capital budget of £118.5m.
 
2.9 to note the HRA capital
programme 2024-25 forecast underspend of £4.9m against the
capital budget of £57.2m.
 
2.10 to note the
Council’s historic borrowing and subsequent debt burden
continues to be critical to the non-sustainability of the
Council’s revenue budget. Dialogue with MHCLG continues
around options of further financial support from Government
in regard to the level of structural
indebtedness to ensure the Council can deliver sustainable Local
Government services.
2.11 to note that the Council
continues to operate Spend Control Panels to ensure that tight
financial control and assurance oversight are
maintained.
 
2.12 to note that current
forecasts are based on the best available information at the time
and will be subject to review and change during the financial
year.