Decision details

To receive a report on the budget monitor for the first quarter of 2022/23.

(a)  That the following be approved:

·  The virements between directorates and from budgeted Capitalisation Direction as set out in Appendix I and which have been applied in the presentation of 2022/23 budgets throughout the report.

·  That approval to virements within a given directorate that do not affect the overall net budget for the directorate (“net-nil”) is delegated to the Executive Director and the S151 Officer.

·  The capital slippage from 2021/22 into 2022/23 for the General Fund (£1.959m) and the HRA (£3.983m).

·  The removal of the £2.085m IT infrastructure refresh capital budget on the basis that it is already correctly included in the revenue budget.

·  The capital slippage from 2022/23 into 2023/24 for the General Fund (£16.497m) and the HRA (£15.374m).

(b)  That the following be noted:

·  that there are a number of continuing pressures arising in the 2021/22 outturn which continue into 2022/23 but have been addressed as planned through the 2022/23 Capitalisation Direction.

·  that the 2022/23 forecast year-end position for the General Fund, taking account of use of all capitalisation direction amendments, is a fully balanced position.  However, within this, there is an overspend of £7.616m across service areas, including a shortfall on in-year savings of £4.439m against the total target of £19.958m, and including the loss set out in the latest SCF business plan. This is then balanced through an improvement in the collection fund position, the application of settlement monies received, the impact of capital receipts on MRP and a reduction in the use of capitalisation.

·  that additional provision of £4.4m has been made for cost of living/inflation impacts above what was originally allowed for in the 2022/23 budget.

·  that the DSG balance is forecast to be a cumulative deficit of £28.863m by the end of this financial year with plans to reduce this to a balanced in-year position by 2025/26.

·  that maintained schools are projecting a reduction in balances by 31 March 2023 from £9.555m to £5.465m, with 4 out of 16 schools expecting to be in deficit with an aggregate deficit of £0.647m.

·  that the HRA is forecasting an improved position against 2022/23 revenue budget of £8.811m, with a contribution to the HRA reserve projected of £0.577m.

·  that the revenue budgets as presented in this report assume that the virements as set out in Appendix I have been approved.

·  that the capital budgets as presented in this report assume that the slippage put forward for both the General Fund and the HRA has been approved.

·  that the capital programme budget for the General Fund for 2022/23 is proposed to reduce from £45.259m to £28.655m through slippage of underspends from 2021/22 and reprofiling of project budgets into future years, and that an overspend of £0.069m is currently forecast.

·  that the capital programme budget for the HRA for 2022/23 is proposed to reduce from £22.111m to £13.185m through slippage of underspends from 2021/22 and reprofiling of project budgets into future years, and that the forecast as at P4 is balanced.