Agenda and decisions

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.

Division/Wards Affected: All

Purpose: To update Cabinet with the consultation responses to the draft budget proposals issued by them on the 17th of January in respect of the Capital and Revenue budgets for 2024/25.

To make recommendations to Council on the Capital and Revenue budgets including the level of Council Tax for 2024/25.

To receive the statutory report of the Responsible Financial Officer on the budget process and the adequacy of reserves.

To receive the Responsible Financial Officer’s Prudential Indicator calculations for capital financing.

Authors: Peter Davies – Deputy Chief Executive (S151 officer)

Jonathan Davies – Head of Finance (Deputy S151 officer)

Contact Details: peterdavies@monmouthshire.gov.uk jonathandavies2@monmouthshire.gov.uk

That Cabinet considers the responses to consultation and recommends to Council:

a) The 2024/25 revenue budget as attached in Appendix C.

b) The 2024/25 capital budget and indicative 2025/26 to 2027/28 budgets as attached in Appendix I.

That a 7.8% increase in the Band “D” equivalent Council Tax is applied for County purposes for 2024/25. Cabinet asks that efforts are maximised to ensure that individuals and households eligible for council tax exemptions or reductions claim the benefit available to them.

That Cabinet approves changes to proposed saving and pressures, updated following public consultation, scrutiny and more up to date information being made available since the draft proposals were released on consultation on 17th January 2024.

That Cabinet approves the proposed changes to the capital programme that include additional highways and infrastructure investment of £1.65m for 2024/25.

That Cabinet considers the Responsible Financial Officer’s report on the robustness of the budget process and adequacy of reserves issued under the provisions of the Local Government Act 2003 and an assessment of the current and future financial risks facing the Council.

That Cabinet adopts the Responsible Financial Officer’s report on the prudential Indicator calculations for capital financing.

That Cabinet requests:

a) That the existing arrangements in place for more regular budget monitoring and scrutiny continue during 2024/25, with monitoring and reporting of budget savings being strengthened in acknowledgement of the deliverability risk involved.

b) That the financial strategy is now developed, accompanied by a medium-term financial plan (MTFP) that looks to keep the Council on a secure and sustainable path going forward.

c) That timely review is undertaken of the MTFP to ensure it remains up to date, including an assessment of evidence-based pressures and risks, underlying modelling assumptions and the ongoing affordability implications of the Community and Corporate Plan.