To receive Report No. 104/2022 from the Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

RESOLVED

1.    That Cabinet:

a)    NOTED the provisional outturn (subject to audit and finalisation of business rates figures) on the revenue budget;

b)    APPROVED transfer to and from reserves of £2.425m.

c)    RECOMMENDED to Council use of new grants received in 22/23 of £2.082m.

d)    RECOMMENDED to Council use of existing grants (i.e. those hold at year end) £0.439m in the 22/23 budget.

e)    APPROVED use of 21/22 budget underspends of £0.486m in the 22/23 budget.

f)      RECOMMENDED to Council an increase to the 22/23 budget to cover additional costs was set out in Section 7.1 of £3m to be funded by General Fund (£2.742m), Earmarked Reserves (£0.318m);

g)    NOTED that the approach to the way budget will be managed was set out in 7.1.4 and that budget would only be released when there was more certainty over estimated figures, potential savings in 22/23 and new burdens funding;

h)    RECOMMENDED to Council to set aside £300k for further requests for funding that will emerge over the coming months as more information became available regarding planned Government reforms and the status of local projects (Section 8.7) and that the Chief Executive and Strategic Director for Resources are given authority to allocate this funding;

i)      RECOMMENDED to Council to establish a High Needs earmarked reserve (no upper ceiling) to cover historic costs as per para 7.8;

j)      NOTED that the MTFP assumptions in respect of pay inflation and other inflation had been updated (Section 8) and the revised MTFP showing a £2.6m funding gap in 23/24 was included in Appendix G.

2.    That Cabinet:

a)    NOTED the view of the Council’s s151 Officer that the Council’s future financial position remained extremely challenging, the projected financial gap for 23/24 was increasing and that whatever savings actions the Council takes further support from Government was likely to be required.

Report No. 104/2022 was introduced by Councillor K Payne, Portfolio Holder for Finance, Governance and Performance, Change and Transformation.

The report informed Cabinet of the provisional outturn for 21/22 subject to audit, the latest position on the 22/23 budget, including proposed changes since it was approved at budget setting and the latest Medium Term Financial Plan position including the projected financial gap for 23/24.

Councillor Payne highlighted the difficulty with recruitment which had a material impact on performance against the budget.  This position was replicated across the sector where all Councils had struggled to recruit to core roles and to bring in additional resource even on a short term basis when funding had been available.

The Leader indicated that the report made us aware of the current service pressures within the Council and what the state of health Local Government is currently in.

It was proposed by Councillor K Payne that the recommendations of report No. 104/2022 be agreed, this was seconded and upon being put to the vote the motion was unanimously agreed.

RESOLVED

1. That Cabinet:

a)    NOTED the provisional outturn (subject to audit and finalisation of business rates figures) on the revenue budget;

b)    APPROVED transfer to and from reserves of £2.425m (Section 6 and Appendix C);

c)    RECOMMENDED to Council use of new grants received in 22/23 of £2.082m (Appendix F);

d)    RECOMMENDED to Council use of existing grants (i.e. those hold at year end) £0.439m in the 22/23 budget (Appendix F);

e)    APPROVED the use of 21/22 budget underspends of £0.486m in the 22/23 budget (Appendix C);

f)      RECOMMENDED to Council an increase to the 22/23 budget to cover additional costs as set out in Section 7.1 of £3m to be funded by General Fund (£2.742m), Earmarked Reserves (£0.318m);

g)    NOTED that the approach to the way budget would be managed was set out in 7.1.4 and that budget would only be released when there was more certainty over estimated figures, potential savings in 22/23 and new burdens funding;

h)    RECOMMENDED to Council to set aside £300k for further requests for funding that would emerge over the coming months as more information became available regarding planned Government reforms and the status of local projects (Section 8.7) and that the Chief Executive and Strategic Director for Resources were given authority to allocate this funding;

i)      RECOMMENDED to Council to establish a High Needs earmarked reserve (no upper ceiling) to cover historic costs as per para 7.8;

j)      NOTED that the MTFP assumptions in respect of pay inflation and other inflation had been updated (Section 8) and the revised MTFP showing a £2.6m funding gap in 23/24 was included in Appendix G.

2.    That Cabinet:

NOTED the view of the Council’s s151 Officer that the Council’s future financial position remains extremely challenging, the projected financial gap for 23/24 was increasing and that whatever savings actions the Council takes further support from Government was likely to be required (Section 9).