Agenda item

Financial Performance 2022-23 – Position at the end of February 2023 (Provisional Outturn 2022-23)

The purpose of the report is to ensure that the Cabinet is informed of the provisional outturn position for the Council against the Budget for 2022-23. Due to the timing of the statutory accounts deadline the forecast provisional outturn is based on the position at the end of February (Appendix C).

Financial Performance 2022-23 – Position at the end of February 2023 (Provisional Outturn 2022-23)

Members received a report informing them of the provisional outturn position for the Council against the Budget for 2022-23. Due to the timing of the statutory accounts deadline the forecast provisional outturn was based on the position at the end of February (copy attached to the signed minutes as Appendix C).

The report was presented by Councillor R. Wearmouth.  It was reported that not all of the budget set aside in the last financial year to cover for inflation had been used and there was a net underspend of £2.1 million.  The report set out how it was proposed to spend this budget in the current financial year.  Thanks was given to the Finance Team and every Directorate as they had kept all costs under control without needing to use reserves and had delivered the underspend.  It was added that parks and green spaces had been particularly welcome during the Covid pandemic and continued to be useful. 

RESOLVED that Cabinet approve

(1)    the new grants and amendments to existing grants at Appendix A and the required changes to the budgets.

(2)    the following which are assumed in the forecast position:

1.     Create a reserve to carry forward unspent 2022-23 Homes for Ukraine funding as per the conditions. The unspent grant was estimated at £5.026 million. It was proposed that the transfer of the final value and utilisation of this reserve was delegated to the Executive Director for Place and Regeneration in consultation with the Section 151 Officer.

2.     Create a reserve of £2.930 million for the replacement of defective street lanterns. It was proposed that the utilisation of this reserve be delegated to the Executive Director for Place and Regeneration in consultation with the Section 151 Officer.

3.     Create a reserve of £0.250 million for Parks and Green Spaces to supplement the Parks Enhancement Capital Programme. Growth was approved by the Council in the 2022-23 budget but was not utilised and schemes were now to be delivered in 2023-24. It was proposed that the utilisation of this reserve was delegated to the Executive Director for Place and Regeneration in consultation with the Section 151 Officer.

4.     Create a reserve for £1.127 million for Highways Commuted Maintenance Funds received from developers for future use on the maintenance of the highway following adoption by the Council.  It was proposed that the utilisation of this reserve be delegated to the Executive Director for Place and Regeneration in consultation with the Section 151 Officer.

(3)    the transfer of the balance of funds from the Economy and Regeneration Investment Reserve to the Regeneration Additional Capacity Reserve to be used to offset the fluctuations in external income received by the service over the medium term to provide a degree of stability for the core capacity of the service.  It was proposed that the utilisation of this reserve be delegated to the Executive Director for Place and Regeneration in consultation with the Section 151 Officer.

(4)    the following use of the underspend:

1.     Add £1.000 to the Regeneration Development Reserve to enable the continued support of the key economic work of the Council and appropriate external partners, to maximise the benefits of current and future investment opportunities.

2.     Add £0.100 million to the Regeneration Additional Capacity Reserve to offset the fluctuations of external funding income over the medium term, thereby providing a degree of stability for the core capacity of the Service.

3.     Add £1.017 million to the Exceptional Inflation Reserve to offset potential inflationary pressures in 2023-24.

4.     that any balance remaining upon finalisation of the Statement of Accounts is to be transferred to the Council’s General Fund (GF). 

(5)    Members were requested to note:

1.     the estimated net re-profiling to the Capital Programme of £14.284 million from 2022-23 to 2023-24 to reflect estimated expenditure levels in the current financial year.

2.     the services projected overspend of £3.091 million and the assumptions outlined in this report.

3.     the net forecast underspend of £2.117 million following the utilisation of the Exceptional Inflation Reserve.

4.     the forecast net nil impact on the General Fund following the proposed use of the underspend.

5.     that this forecast provisional outturn is based on the figures as at the end of February and is subject to change.

6.     the delivery of the approved savings at Appendix B.

7.     the use of the contingency shown at Appendix Q.

8.     the use of reserves shown at Appendix R.

9.     the virements requested by services shown at Appendix S.