Content

Cabinet RESOLVED;
 
2.1 to note the General Fund
revenue budget outturn is forecast to overspend at financial year
end by £15.6m at Period 2, 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 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 4.118.
 
2.4 to note the work that has
commenced on the Council’s Transformation Programme as set
out from paragraph 4.115.
 
2.5 to note the Housing Revenue
Account (HRA) revenue budget outturn is forecast to overspend by
£2.0m.
 
2.6 to approve the net budget
increase in 2024-25 General Fund capital programme budgets
resulting from 2023-24 net slippage of £19.7m.
 
2.7 to note the General Fund
capital programme 2024-25 forecast underspend of £1.0m
against the revised capital budget of £110.0m.
 
2.8 to note the HRA capital
programme 2024-25 forecast underspend of £4.9m against the
capital budget of £57.2m.
 
2.9 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.
 
2.10 to note that the Council
continues to operate Spend Control Panels to ensure that tight
financial control and assurance oversight are
maintained.
 
2.11 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.