Issue - meetings

Portfolio Holder – Councillor Martin Cook

This report gives details of the forecast outturn position for 2024/25 for:

1.           The General Fund Revenue Budget, General Balances, and the Council’s Reserves.

2.           The Housing Revenue Account.

3.           The Shared Revenues Partnership.

4.           The Capital Programme, for this and future years.

5.           Treasury Management.

59.1.    Councillor M Cook introduced the report, noting that there had been little variance as the report reflected the Budget Delivery Plan agreed in September. Changes to the Capital Programme were proposed as were a number of write-offs, mostly relating to avoidance schemes or where companies had entered administration.

59.2.    Councillor Fisher commented that paragraph 2.8 of the report was inaccurate as the Government was not intending to continue with the previous government’s spending plans in many areas. Councillor M Cook replied that the reference was to the Government’s spending plans in relation to Local Government Finance, which was the topic of the report; he did not agree therefore that the report was inaccurate, and given that the paragraph was not a recommendation he didn’t think it needed to be clarified.

59.3.    Councillor Fisher noted that the Council had borrowed £30m to support its cashflow and said that finance costs were now 15% of revenue. Councillor Fisher asked whether the Council was convinced that it would be able to repay its debts. Councillor M Cook noted that borrowing was comfortably within the limits set out in the Treasury Management Strategy and that the Council had never failed to repay loans and wouldn’t start now. Councillor M Cook suggested that the correct time to debate debt levels was at Full Council when the Treasury Management reports were discussed, which took place twice each year.

59.4.    Councillor Fisher said that he did not feel it was unreasonable to ask a question about figures contained in the report presented and reiterated his question about the affordability of the Council’s borrowing.

59.5.    The Director – Resources and Housing, Ian Blofield, reported that the Council had taken out loans in anticipation of capital receipts, which would allow these to be paid off. The Budget Delivery Plan would deliver savings which would help the Council to meet its liabilities. The reserves within the Housing Revenue Account previously used to build new homes had also been depleted and so borrowing was also being taken out to fund building works.

59.6.    Councillor M Cook added that the Council did not now keep large reserves in instant access accounts and so short term borrowing might be needed to provide quick access to cash.

59.7.    Councillor MacDonald asked that more detail in relation to the £674k variance in Maintenance and Contracts be emailed to him.

It was RESOLVED:

a)            that Executive notes the service budget performance and the future year effects and approves resulting budget changes made for the General Fund, the Housing Revenue Account, and the Shared Revenues Partnership (SRP).

Reason: to facilitate effective budgetary control and forecasting.

b)           that Executive approves the transfers to/from reserves and contingencies (as detailed in paragraphs 5.7 and 8.11 of the report).

Reason: to facilitate effective budgetary control and forecasting.

c)            that Executive notes the position on the 2024/25 and future years Capital Programme and approves the changes to the capital programme identified in Section 11 of the report.

Reason: to facilitate effective  ...  view the full minutes text for item 59