Agenda item

RESOLVED

That the Executive:

a)    Noted the Council’s forecast outturn position for 2023/24 as summarised in Section 4, alongside the further analysis, risks and other considerations as set out in Section 5 to Section 7 of the report.

b)    Noted the release of the contingency budget, totalling £2.222m, to fund the pay award pressures.

c)    Noted the assessment of the current deliverability of the 2023/24 savings proposals in Appendix A.

Reason for Recommendations – to note the forecast financial position for 2023/24 as at Period 7 and consider the impact on this year and future years budgets.

Alternative Options Considered: The report focuses on the forecast revenue outturn against budget for 2023/24 and makes recommendations for the Executive to note the current budgetary position as such there are no specific choices within the report.

The Chair invited Cllr Lyn Buckingham to speak on this item. Cllr Buckingham raised concerns regarding the forecast pressures for the Dedicated School Grant (DSG) and the recent increase in these figures.

Cllr Jim Hakewill then spoke to ask the Executive Member what in-year efficiencies had, and would, be utilised to avoid using contingency and reserves funds to mitigate overspending.  

The Chair thanked both speakers for their contributions before inviting Cllr Lloyd Bunday, Executive Member for Finance and Transformation to introduce a report that set out the forecast outturn position for the Council based on the Period 7 monitoring forecasts for the General Fund and the Housing Revenue Account (HRA).

In response to Cllr Buckingham’s comments, Cllr Bunday echoed concern regarding the pressures affecting the Dedicated Schools Grant and stated that conversations with the Department for Education and Schools Forum were ongoing to try and mitigate the situation. Cllr Bunday also commended all services areas for their efforts to deliver savings to mitigate the pressures of the Council’s demand-led services.

The meeting heard that the overall outturn forecast for the General Fund for 2023/24, as at Period 7 was a forecast overspend of £6.198m against the approved budget, a favourable movement of £1.377m since the last reporting period.

It was heard that to safeguard the financial position of the Council, officers would continue to seek efficiencies in year to offset the forecast overspend. Whilst there was a contingency budget and reserves available to call on to help fund in year pressures, the Council would look to alternative mitigations before these were applied.

Cllr Bunday reported that the NJC pay award, applicable to the majority of Council staff had been agreed and resulted in a pressure of £2.222m, to be funded by utilising the Council’s contingency budget, reducing the balance from £3.746m to £1.524m.

Against favourable movements for the Place, Enabling and Corporate directorates, there was again an adverse impact from Children’s Services and an added pressure from Adult Social Services. It was reported that the Children’s Trust was now forecasting an overspend of £23.509m, with additional staffing pressures of £605,000 within Children’s Services.  Third party payments, independent care spend and staffing pressures had resulted in an additional pressure of £3.459m for Adult Services.

Details of favourable budgetary movements were outlined to the meeting, with Executive noting that the Council had set aside £5.708m in 2023/24 for a pay contingency to allow for annual increments and potential pay increases of 4%.

It was estimated that Business Rates income for the Council was £2.666m above the original budget.

The Council’s overall outturn forecast for the Housing Revenue Account was reported as being an overspend of £185,000.

It was also reported that the Dedicated Schools Grant (DSG) had a forecast pressure of £8.598m, with pressures relating to the high needs funding block that supported SEND provision. Discussions were ongoing to mitigate these pressures.

Cllr Scott Edwards spoke to note the huge increase in Education, Health and Care plans as a driving factor for the DSG pressures, noting it was a national issue and not localised to North Northamptonshire. A request for the Department of Education to review the current funding mechanism as well as other mitigation measures were being discussed.

Cllr Helen Harrison spoke to note the unprecedented level of service demand impacting Adult Services. It was reported that rapid and extensive work was being undertaken to ensure financial forecasting was as accurate as possible and that for the next financial year pressures could be identified and mitigated in advance. High-cost care packages was one area for review as well as examining other contracts to ensure best value was being obtained.

RESOLVED

That the Executive:

a)    Noted the Council’s forecast outturn position for 2023/24 as summarised in Section 4, alongside the further analysis, risks and other considerations as set out in Section 5 to Section 7 of the report.

b)    Noted the release of the contingency budget, totalling £2.222m, to fund the pay award pressures.

c)    Noted the assessment of the current deliverability of the 2023/24 savings proposals in Appendix A.

Reason for Recommendations – to note the forecast financial position for 2023/24 as at Period 7 and consider the impact on this year and future years budgets.

Alternative Options Considered: The report focuses on the forecast revenue outturn against budget for 2023/24 and makes recommendations for the Executive to note the current budgetary position as such there are no specific choices within the report.