A report produced by the Council's s151 Officer to provide an assessment on the 2024-25 Budget Proposals and forecast reserve position.

Resolved –

That it be recommended to Council that:

(1)           That Members have regard to Document “AP” in setting the budget, and in particular note the conclusions that provided that :

·       the current and planned actions are successfully concluded ie that the emerging financial strategy is agreed and implemented in full;

·       the Government supports the Council with a “minded to” Capitalisation Direction and will agree to do so in future years;

·       the recommendations in Document “AP” are agreed and actioned in full;

·       then, in light of a positive response from Government, the overall estimates are sufficiently robust for the Council to set a balanced budget for 2024/25.

(2)           That Members agree:

·       that the level of general reserves is inadequate at £33m and that reserves need to replenished

·       that there is accordingly no planned use of reserves to support the 2024/25 budget;

·       to required implementation in full of the emerging financial strategy ie that the Council:

·       identifies an estimated £40m of revenue savings for 2025/26;

·       identifies assets to be sold to generate capital receipts;

·       undertakes a review of the capital programme;

·       considers increasing income;

·       operates expenditure control panels as set out in the report from 1 April 2024;

·       undertakes a full review of financial management and finances of the Council;

·       invests in core functions necessary and subject to business cases;

·       any non delivery of planned 2024/25 revenue savings will need to be absorbed within existing cash limited Departmental budgets.

(3)           That Members note:

·       the assessment of the current financial position of the Council;

·       that this assessment is the result of emerging and recent work.  The situation will change and the estimated financial position and solutions will require continual development and refinement and will likewise vary as the year progresses;

·       the s151 officer is not minded to issue a s114 notice at this point working on the basis that the above assumptions will be supported and seen through on time and in full;

·       given the extremely challenging financial situation the Council finds itself in, which it has in recent months started to address, if the recommendations are not agreed, or if the assumptions are not delivered as assumed then very serious consideration will be given to the issuing of a s114 notice

·       that the 2024/25 savings are being reviewed for deliverability;

·       as with all budgets there is the potential for amendments to be proposed/agreed which could change the overall package of proposals. In that respect, it should be highlighted that this statement would have to be amended if a decision was proposed that leads to the Council’s reserves reducing below their recommended General Fund balance level. In addition, any other amendments would be considered against the scale of the overall budget and depending upon the extent and nature, may result in a revised statement.

To be actioned by: Director of Finance

Overview and Scrutiny Committee: Corporate

(Andrew Cross – 01274 436823)