Decision details

To receive the revenue and capital budget monitor for the second quarter of the 2023/24 financial year.

That the following be noted:

1.  The Council’s forecast overspend at the end of Quarter 2 is £8.2m, up considerably from £5.3m at the end of Quarter 1.  The risk is therefore high that without significant reductions in spend over the remainder of the financial year, the Council will be unable to balance its budget within the Capitalisation Direction.

2.  Service revenue budgets are forecast to overspend by £15.6m in 2023/24.  There are Corporate underspends in respect of interest costs and receipts (£5.7m) and the Corporate Contingency budget (£5.4m) totalling £11.1m.  However, the Minimum Revenue Provision (MRP) is showing an overspend of £3.7m.  Service and Corporate budgets combined are showing an overspend of £8.2m. 

3.  If drastic reductions are not made in the remainder of the financial year, the Council will be unable to balance its budget within the current capitalisation direction.

4.  Medium Term Financial Strategy Savings (MTFS) of £20.5m are expected to be delivered in 2023/24 against planned savings of £22.4m.

5.  That the Capital programme is forecast to underspend in 2023/24 by £25.5m. Requests for slippage would require separate authorisation and are assumed here for the sake of clarity.  A formal request for approval will form part of the Q3 Budget Management report to Cabinet in February.