Agenda item

To consider a report from the Director of Finance (Section 151 Officer) (copy to follow)

The Deputy Leader presented a report which set out the Council’s forecast year-end financial position  at 30 September 2022 and covered the revenue budget, capital programme and treasury management.

He took Cabinet through the key messages contained in the report, and highlighted the following:

·           The original approved net revenue budget for 2022/23 was £455.496m. After taking account of adjustments to General Grants and transfers to and from reserves, the revised net budget 2022/23 was £472.818m at 30 September 2022. The net forecast outturn was £472.818m, an overspend of £1.368m (0.3%) as summarised in Table 1 of the report.

·           The General Fund Balance at 1 April 2022 was £25.056m. Q1 forecast a £1.368m overspend position, which would reduce the General Fund balance to £23.688m. When the General Fund Balance was set by Council at £25m it was stated as being adequate for the financial risks facing the Council. Therefore, focused work was continuing to deliver a balanced budget position to mitigate any impact on the General Fund Balance. A balanced budget position for 2022/23 would enable General Fund Balance to remain at the present position of £25.056m.

·           There continued to be significant financial risks that could impact on the forecast outturn position reported at Q2. These included:

Ø the uncertainty around further increases to inflation levels throughout the year;

Ø increased financial costs as care market conditions potentially improve and the unmet need for social care provision is met;

Øcapacity concerns around delivering County Council priorities whilst also supporting the Local Government Reorganisation programme and responding to national policy changes resulting in the need to invest in additional resources in year, and;

·      increased demand for individual support and financial assistance for individuals and households due to the ongoing cost of living crisis. 

·           There had been changes to the Capital Programme since February and this report sought agreement to change the Capital Programme, 2022/23 to 2026/27, by £3.439m.

RESOLVED, that Cabinet

(1)     Note the revised Revenue Budget at the provisional outturn for monitoring purposes of £471.450m as a result of the agreed transfers to and from reserves (set out in Appendix 1 of the report);

(2)     Note the forecast Revenue Budget outturn as at Q2 is a projected overspend of £1.368m (see Table 1 below) which would result in a General Fund Balance position at year end of £23.688m.

(3)     Note that Corporate Management Team is working collectively to identify and take further actions to mitigate the financial pressures to ensure a balanced budget position is achieved at year end resulting in a General Fund Balance position at year end of £25.056m.

(4)     Note the forecast delivery of approved savings for 2022/23 is £14.792m against a total target of £16.231m (91.1%).

(5)     Note the key decision that has been taken in respect of providing £3.845m of financial support for social care providers through an in year uplift to social care provider contract rates effective from 1 October 2022.

(6)     Approve £2.000m of funding to support Cabinet’s response to Scrutiny Task Group Review – Cost of Living and Children’s Food. This by utilising £1.600m of COVID unringfenced earmarked reserves and £0.400m of available COMF grant.

(7)     Approve the creation a £0.500m earmarked revenue reserve to fund Free School Meals in the Easter Holidays 2023.

(8)     Approve three Revenue Contribution to Capital totalling £0.358m:

·         £0.200m to the Schools Corporate Maintenance Fund.

·         £0.118m from the Allerdale Local Committee Budget to the Area Planning Budget.

·         £0.040m from Bus Operators Grant towards bus stops on Devonshire Street, Carlisle as part of the Carlisle Southern Gateway project.

(9)     Approve the following amendments to the Capital Programme:

(10) Note the forecast outturn for the Capital Programme 2022/23 of £141.357m against a current capital budget of £148.745m (excluding Accountable Bodies) resulting in a variance of (£7.388m) being reported at Q2, as set out in Table 20 of the report.