s151 Officer Assessment - The report assesses the robustness of the proposed budget for 2025-26, the adequacy of forecast levels of reserves and associated risks.

Resolved –

That it be recommended to Council: 

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

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

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

Ø  the recommendations in this and the other budget reports are agreed and actioned in full;

Ø reserves continue to be built up as required;

Ø risks are properly and promptly managed;

Ø financial management issues are successfully addressed;

then the overall estimates are sufficiently robust for the Council to set a balanced budget for 2025/26.

(2)       That Members agree:

Ø  that the level of general reserves be increased;

Ø  that there is accordingly no planned use of reserves to support the 2025/26 budget;

Ø  to implementation in full of the financial strategy ie that the Council:

·         identifies an estimated £50m of revenue savings for 2026/27 to 2029/30;

·         identifies £150m of assets to be sold to generate capital receipts, and investigates the potential for more;

·         undertakes a further review of the capital programme;

·         operates expenditure control panels as set out in the report until at least 2026/27;

·         continues with its review of financial management and finances of the Council;

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

Ø  any non-delivery of any planned revenue savings will need to be absorbed within cash limited Departmental budgets.

(3)       That Members note:

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

Ø  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;

Ø  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;

Ø  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;

Ø  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 budget not being in balance.  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 Area: Corporate                        (Steven Mair)