Content

Cabinet
RESOLVED;
 
2.1 To note the General Fund
revenue budget outturn is forecast to overspend at financial year
end by £20.6m at Period 4, 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 the budget
movement between directorates to match the movement of the
Bereavement and Registrars service from Assistant Chief Executive
(ACE) Directorate to Sustainable Communities, Regeneration &
Economic Development (SCRER) Directorate
(£1.081m).
 
2.4 To approve the budget
movement from Resources Directorate to Adult Social Care and Health
(ASCH) Directorate to set up the premises cost recharge budget for
the Community Equipment Service (£0.502m) as set out in para
4.11.
 
2.5 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 4.125.
 
2.6 To note the work that is
continuing on the Council’s Transformation Programme as set
out from paragraph 4.123.
 
2.7 To note the Housing Revenue
Account (HRA) revenue budget outturn is forecast to overspend by
£2.0m.
 
2.8 To note the General Fund
capital programme 2024-25 forecast underspend of £7.6m
against the revised capital budget of £118.5m.
 
2.9 To note the HRA capital
programme 2024-25 forecast underspend of £8.1m against the
revised 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 as set out from para 4.144. 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, and tightened the
criteria from July 2024, to ensure that stringent 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.