Agenda item

Budget Monitoring P10

Executive Summary

This report provides an update on the Council’s financial performance and projected outturn for 2023/24 for the revenue account, capital programme and reserves  statement as at the end of January2024.

 

As at 31 January 2024, the General Fund projected deficitis

£0.986m for the full year 2023/24. This is after adjusting for all known variations and full year forecasting by service managers.

Options considered

This is an update report on the Council’s financial position and so no other options were considered.

Consultation(s)

Cabinet Member Section 151 officer Budget Managers

Recommendations

It is recommended that Cabinet:

 

1)    Note the contents of the report and the current forecast year endposition.

2)    Note the actions to take some short term borrowing and to call back some of the investments that are in our pooledfunds.

3)    Approve the use of the Economic Regeneration Reserve as required as proposed in paragraph2.25.

4)    Approve the use of £0.2m of the Treasury Management reserve to cover the overspend as proposed in paragraph2.42.

5)    Note that officers will work together to take action to reduce the overall projected General Fund deficit at the for2023/24.

Reasons for recommendations

To update members on the current budget monitoring position for the Council.

Background papers

\\fs\Accounts\Budget Monitoring\BUDGET MONITORING\2023-24\Period 10\Report and Appendices\Draft Budget Monitoring P10 2023-24 .doc

Wards affected

All

Cabinet member(s)

Cllr Lucy Shires

Contact Officer

Tina Stankley, Tina.stankley@north-norfolk.gov.uk

 

Links to key documents:

Corporate Plan:

Budgets set to support the Corporate Plan objectives.

Medium Term Financial Strategy (MTFS)

Budget process in line with MTFS

Council Policies & Strategies

Service Budgets set in line with the council policies and strategies.

 

 

 

Text Box: Corporate Governance:

Is this a key decision

no

Has the public interest

test been applied

Not an exempt item

Details of any previous decision(s) on this matter

N/A

 

 

Decision:

Decision

RESOLVED

 

1)    Approve the use of the Economic Regeneration Reserve as required as proposed in paragraph2.25.

2)    Approve the use of £0.2m of the Treasury Management reserve to cover the overspend as proposed in paragraph2.42.

 

Reason for the decision:

To update members on the current budget monitoring position for the Council

Minutes:

Cllr L Shires, Portfolio Holder for Finance, introduced this item. She began by explaining that the forecast gap had widened slightly due to an overspend on temporary accommodation, adding that the reasons for this were set out in section 2.34 of the report and saying that the Council had no choice but to react as it had a legal duty regarding homelessness. She referred to pages 21 – 22, where interest and the potential for borrowing was set out. She reminded members that borrowing was needed for the purchase of waste vehicles but the Council was now in a position where it may be needed to support with cashflow, caused by council tax precept collection. She then asked the DFR to speak about plans to address the deficit going forward. The DFR said that any borrowing would be short-term until interest rates came down. Regarding the current financial position, she said that there had been some windfall income of £135k relating to a VAT issue from 2009 and this would be used to offset the deficit.

 

Cllr W Fredericks thanked officers for their hard work. She said that it was important to continue to lobby central government and it had been successful in part, as representatives from Department for Levelling Up, Housing & Communities (DLUHC) were coming to visit the district on Wednesday, following extensive pressure. They would be in attendance for several hours to learn about the unique housing-related challenges presented in North Norfolk, due to its demographic and the pressure placed by second homes. She said that she would continue to lobby hard for support when she met with them on Wednesday.

 

It was proposed by Cllr T Adams, seconded by Cllr L Shires and

 

RESOLVED

1)    Note the contents of the report and the current forecast year endposition.

2)    Note the actions to take some short term borrowing and to call back some of the investments that are in our pooledfunds.

3)    Approve the use of the Economic Regeneration Reserve as required as proposed in paragraph2.25.

4)    Approve the use of £0.2m of the Treasury Management reserve to cover the overspend as proposed in paragraph2.42.

5)    Note that officers will work together to take action to reduce the overall projected General Fund deficit at the for2023/24.

Reason for the decision:

To update members on the current budget monitoring position for the Council.

 

 

Supporting documents: