Issue - meetings

Division/Wards Affected: All

Purpose: To provide Cabinet with an update of the progress of the Councils revenue budget for the 2023/24 financial year, based on actual expenditure incurred at the end of Month 9 (December), and overlaid with the most up to date budget information up until the time of publishing.

Author: Jonathan Davies, Head of Finance (Deputy S151 officer)

Contact Details: jonathandavies2@monmouthshire.gov.uk

That Cabinet note the overall revenue budget deficit forecast at month 9 of £314k, a slight deterioration of £29k since the previous forecast.

That Cabinet note the forecast 85% delivery of the £12.3m required service savings for the year, resulting in a £1.86m deficit that is needing to be managed as part of the overall revenue budget. The overall level of required savings includes the additional in-year budget recovery measures of £2.1m instigated at Month 5.

That Cabinet note the budgetary risks included within the forecast, namely;

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

·       The risk of further non-delivery of the £12.3m of budgeted savings targets through to year-end;

·       The severely limited reserve cover available to the Council to cover any further deterioration in outturn position

That Cabinet note the forecast draw of £5.6m on schools delegated balances as outlined in Appendix 1 of this report, an increased draw of £1.85m since the previous forecast. Cumulative school balances are forecast to move into a deficit of £1.35m by the end of the financial year, with sixteen schools now forecast to be in a deficit balance.

That Cabinet note an overall forecast Capital budget under spend of £3.5m, alongside an indication of slippage in capital schemes of £11.9m. This consequently introduces £815k of useable capital funding that can assist in meeting forward capital pressures.