Decision details

That Cabinet note the overall revenue budget deficit forecast at month 5 of £124k.

That Cabinet endorse the budget recovery action as outlined in Appendix 3, that has been enacted as a direct result of Cabinet’s request at their July 2023 meeting for immediate mitigating budget recovery action following signalling of early budget pressure.

That Cabinet note the budgetary risks that are inbuilt into the month 5 forecast, namely;

·        The volatility of demand for high-cost services, particularly in Adults & Childrens Social Care and Homelessness;

·        Continuing negotiation around national pay agreements which will further impact forecasts if it results in an award over and above the current offer;

·        The risk of further non-delivery of the £10m of budgeted savings targets, with services currently forecasting 83.6% delivery;

·        The severely limited reserve cover available to the Council;

·        The continued pressure on both UK and Welsh Government budgets, and wider challenging economic environment;

·        The potential shortfall in funding of the increased responsibilities transferred to Councils, particularly within Universal Free School Meals and Homelessness that have the potential to further impact forecasts.

That in light of the severity of the current financial position and the risk that this presents to the ongoing financial sustainability of the Council, that all possible budget mitigation actions continue to be instigated by services such as to limit the call on severely limited reserve balances.

That Cabinet note the forecast draw on schools delegated balances as outlined in Appendix 1 of this report of £3.663m, with school balances forecast to reduce to £594k by the end of the financial year with eleven schools forecast to be in a deficit balance.