Purpose

This report provides an update to Cabinet on the county council's 2022/23 revenue and capital financial position.

The effects of the COVID-19 pandemic are still evident in some services particularly relating to demand for Adults and Children's Social Care. There are also significant inflationary pressures resulting from a number of factors including the pandemic and the war in Ukraine.

On 17th November 2022, the Autumn Statement took place, with the Chancellor of the Exchequer providing details of both additions and reductions in funding for the local government sector overall and changes to costs, such as the National Living Wage.  Whilst an initial assessment suggests that the impact of the funding changes announced in the statement should be positive overall for the 2023/24 budget position, there is uncertainty with regard to the actual impact on individual council funding allocations until further information is made available.  The Local Government Finance Settlement confirming the actual 2023/24 funding allocations for individual councils is expected to be published in December 2022 and therefore the next revised medium-term financial strategy will be presented at the January Cabinet meeting.

In summary:

(i)  The 2022/23 revenue forecast outturn is £956.056m, representing a projected overspend of £7.989m (0.84%) of the agreed budget.

(ii)  The council is forecast to spend £172.135m of the £222.069m approved delivery programme. This represents a forecast variance underspend of £49.934m which represents 22.5% of the approved programme.

Decision

The Cabinet approved the recommendation(s) as set out in the report.