Content

Purpose of
the report
The
report provided the Cabinet with an update, as at 31st July 2024 (Month 4), of the
Council’s 2024/25 forecast revenue budget position and the
financial position of the capital programme together with the
revised capital programme 2024/25 to 2028/29.
 
Reasons for
the Recommendations
 
a.   
Revenue Position
The
forecast overspend position based on the Month 4 profiled budget
was £7.202m which if not addressed would result in a year-end
overspend of £21.065m (£26.033m at month 3). This
financial monitoring report followed on from the position reported
at Month 3 and was considered a warning of the potential year-end
position if no further action was taken to reduce net expenditure.
The management actions already implemented for 2024/25 have been
factored into the Month 4 forecasts and this has resulted in a
reduction in the position previously reported. Work continues
across the organisation to address this position and it is
anticipated that by the year end, the current outturn deficit
position should reduce even further.
 
b.   
Capital Position
The
submitted report outlined the most up to date capital spending
position for 2024/25 to 2028/29 for approved schemes. The revised
capital programme budget for 2024/25 is £103.935m at the
close of month 4 (£101.680m at Month 3), a net increase of
£2.255m. Actual expenditure to 31 July 2024 was
£17.397m (16.74% of the forecast outturn). It was likely that
the forecast position will continue to change throughout the year
with additional re-profiling into future years.
 
Options/Alternatives
The
options that Cabinet considered in relation to the submitted report
were:
a.   
To consider the forecast revenue and capital
positions presented in the report including proposed
changes.
b.   
To propose alternative forecast
The
preferred option was that the Cabinet Committee considers the
forecasts and changes within this report; option (a).
 
Decisions:

1.   
Cabinet notes the contents of the report.

2.   
Cabinet approves forecast profiled budget, being an
adverse position of £7.202m at Month 4 and the forecast
potential adverse position by year end of £21.065m, with
mitigations in place to reduce expenditure.

3.   
Cabinet approves the revised capital programme for
2024/25 including the proposed virements and the forecast for the
financial years to 2028/29 as at Month 4.