Decision details

To consider a report on the Council’s current financial position and Medium Term Financial Strategy and take any decisions arising from the July finance review.

That the following be noted:

1.  That the overspend detailed in the Provisional Outturn Report 2023/24 that was presented on Cabinet on 17th June 2024 of £15.5m reflected an underlying overspend of approximately £11.7m.  These pressures contribute to an overspend in 2024/25.

2.  That early indications from budget monitoring work undertaken in the year to date indicate that there were new pressures of approx. £4.1m.  This equates to a forecast overspend for 2024/25 of £15.8m prior to any mitigating actions being agreed.  This impacts on the overall savings requirement for 2024/25 and future years. 

3.  The Budget Smoothing Reserve has an opening balance in this financial year of £10.7m, and already has commitments against it of £6.0m, £4m to the Transformation Reserve approved by Council in March 2024 and £2m Upton Lodge impairment as per another report at this Cabinet, bringing the effective balance down to £4.7m.

4.  The forecast budget gaps for the next 5 years are £15.0m in the current year, rising to £31.9m by 2028/29 and will require changes to the council’s target operating model to achieve a balanced budget.

The Cabinet approved:

5.  The timetable to produce the 2025/26 Budget and 2026/29 Medium Term Financial Strategy, as shown in Appendix 1 to the report.

6.  The re-phased General Fund Capital Programme for 2024/25 to 2027/28 as shown in Appendix 3 to the report.

The General Fund revenue budget was approved at £162.203m and included growth (including inflation) of £18.327m, and savings of £12.206m, of which £12.183m is in the MTFS Savings Plan, and £0.023m relates to fee uplifts. This report rolls forward the period of the MTFS into 2028/29, and the tables reflect this additional year.

7.  The addition of the following new projects to the capital programme, as detailed in paragraphs 4.10 and 4.15 to 4.17, and Appendix 3 to the report.

·  Childcare expansion

·  Upton Court Pathway

·  Cippenham Bridges

·  Swimming Pool Support Fund initiative