Issue - meetings

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

(a)           That the Senior Leadership Team’s forecast of the full year’s outturn for the Council, made at the end of Quarter 2 including progress of the work to deliver savings that were incorporated into the budget, be noted.

(b)           That the spend to date on the approved capital programme for 2022/23 and the likelihood of significant slippage alongside the risk of inflation, interest rates and delivery concerns, be noted.

(c)           That the impact of financial projections for 2022/23 on the developing budget strategy and Medium-Term Financial Plan (MTFP), be noted.

(d)           That the commencement of a procurement process for an insurance protection contract be agreed and the subsequent decision to award the contract be delegated to the Portfolio Holder for Finance, Commercial and Capital Strategy, in consultation with the Executive Director, Corporate Development.

Reason for the decision

The Council has responsibilities to deliver its corporate plan priorities and it must do this within the resources made available through the revenue and capital budgets for 2022/23. This report summarises the Council’s forecast financial performance for the year at the half-way point.

The Portfolio Holder for Finance, Commercial and Capital Strategy presented the report and proposed its recommendation. The Portfolio Holder advised that since Quarter, officers had work to reduce the rate of overspend and at the end of quarter 2, the Council was forecasting net budget pressures of £7.8m. Further measures should reduce the rate of net spend in the second half of the year.

2022/23 continued to be a challenging time for local government with inflationary and demand pressures impacting on income and expenditure. All directorates were working to make further reductions and prepare for the 2023/24 budget setting.

Cllr J Haynes seconded the motion.

In response questions, the Portfolio Holder and the Executive Director for Corporate Development advised that: -

·       In respect of the Dedicated School Grant, officers had met with the Department of Education to discuss this matter and they had asked the council to present a recovery plan and were open to whether the timescale of the agreement maybe able to be extended.

·       In respect of the contingency fund, the Executive Director confirmed that a detailed response would be forwarded to the councillor concerned.  However, he acknowledged that financial pressure had been experienced in the areas of the Pay Award and home to school transport.

·       In respect of the sundry debt, it was confirmed that other methods of collections were being considered and there would be a balanced judgement some of the debt being written off.

Decision

(a)           That the Senior Leadership Team’s forecast of the full year’s outturn for the Council, made at the end of Quarter 2 including progress of the work to deliver savings that were incorporated into the budget, be noted.

(b)           That the spend to date on the approved capital programme for 2022/23 and the likelihood of significant slippage alongside the risk of inflation, interest rates and delivery concerns, be noted.

(c)           That the impact of financial projections for 2022/23 on the developing budget strategy and Medium-Term Financial Plan (MTFP), be noted.

(d)           That the commencement of a procurement process for an insurance protection contract be agreed and the subsequent decision to award the contract be delegated to the Portfolio Holder for Finance, Commercial and Capital Strategy, in consultation with the Executive Director, Corporate Development.

Reason for the decision

The Council has responsibilities to deliver its corporate plan priorities and it must do this within the resources made available through the revenue and capital budgets for 2022/23. This report summarises the Council’s forecast financial performance for the year at the half-way point.