Issue - meetings

Report of Cabinet Member for Finance and Assets, Councillor Peter Jeffries

RESOLVED THAT: 

the contents of this report be noted, including the key projected variances to the general fund and Housing Revenue Account (HRA) 2023/24 revenue and capital budgets approved by Council on 20 February 2023 and the actions to ensure overspends are reduced as far as possible by the end of the financial year. 

The Cabinet Member for Finance and Assets introduced the report, which presented the forecast outturn position against our 2023/24 budget that was approved by Full Council in February of this year.

He reminded Members that, due to inflationary pressures on energy costs, pay awards and interest rate increases in 2022/23, the council needed £2.6m from general balances to balance its budget, which thankfully general balances were at a level to support.

He said that moving into 2023/24, £150k was budgeted to be added to general balances by the 31^st March 2024. At this point in the year, the forecast is that by year end we will have overspent against our approved budget by £700k.  This is compared to a forecast overspend of £475k at the end of June – there are a number of pressures reported in the Q1 monitor which have increased since the previous Cabinet presentation and these are outlined in the report.

He added that there are also a number of ongoing external factors outside of the council’s control - interest rates, inflation, higher than budgeted Payaward – but that the council’s focus continues to be on the areas of the budget that it can control.

He said he has reported many times over the last 18 months that the council’s balances and reserves are finite and without making further contributions to general balances, it will need to identify additional savings and efficiencies above the current Medium Term Financial Strategy. The council needs to focus on mitigating the forecasted overspends in the budget detailed in the report and making sure that identified savings and efficiencies are delivered as planned.

He concluded by putting on record his thanks to Gemma and the finance team for their continued efforts during these turbulent economic times.

The Cabinet Member for Climate Emergency thanked the Cabinet Member for Finance and Assets and all the finance team for their work under incredible pressure.  With councils around the country going under, this is a stressful time, and there is much to be grateful for in the report, with the team working hard to find areas to keep CBC afloat.  She regretted that local authorities across the country find themselves in this position following the autumn statement, which did nothing to help them, and was grateful that CBC has the Cabinet member and finance team who care about protecting services and people in Cheltenham. 

RESOLVED THAT: 

the contents of this report be noted, including the key projected variances to the general fund and Housing Revenue Account (HRA) 2023/24 revenue and capital budgets approved by Council on 20 February 2023 and the actions to ensure overspends are reduced as far as possible by the end of the financial year.