Resources and Transformation Overview and Scrutiny Panel – 26 June 2025

Cabinet – 2 July 2025

Financial Monitoring Report (Provisional Budget Outturn 2024/25)

Purpose	For Decision
Classification	Public
Executive Summary	This report provides the provision outturn of the General Fund, Housing Revenue Account (HRA) and capital programme for the 2024/25 financial year. It states: · the General Fund has a provisional surplus of £3.366 million with the intention to enhance specific reserves for Devolution and Local Government Reorganisation reserve (£350,000), Depot Improvements (£500,000) and the Council’s Capital Programme reserve (£2.516 million). · the HRA has a provisional surplus of £1.436 million, which is earmarked to enhance the Acquisition and Development reserve. · £46.439 million has been invested in our Capital Programme (General Fund £17.787 million; HRA £28.652 million)
Recommendation(s)	It is recommended that Cabinet: 1) note the provisional outturn of the General Fund, HRA, and Capital budgets for 2024/25. 2) note the year-end rephasing, as included in the provisional outturn figures. 3) approve an additional £350,000 is added to the Devolution and Local Government Reorganisation reserve. Is asked to recommend to Council that they: 4) Approve adding £500,000 to the Capital Programme to facilitate improvements across the Council’s depot estate.
Reasons for recommendation(s)	To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position and take any action to support the sustainability of the council’s financial position ensuring we are being financially responsible. To comply with the council’s financial regulations regarding budget virements and supplementary budget requests.
Ward(s)	All
Portfolio Holder(s)	Councillor Jeremy Heron – Finance and Corporate
Strategic Director(s)	Alan Bethune – Strategic Director Corporate Resources and Transformation (Section 151 Officer)
Officer Contact	Paul Whittles Assistant Director - Finance 02380 285766 paul.whittles@nfdc.gov.uk

Introduction and background

1. Following the approval of the Original Budget for 2024/25 in February 2024 and quarterly updates via Financial Monitoring reports presented to Cabinet 4 September 2024, 6 November 2024 and 5 February 2025, this report sets out the provisional outturn results for revenue and capital budgets for both the General Fund and Housing Revenue Account for 2024/25.

2. Financial Monitoring is an important feature in the management of the council’s finances as it gives an opportunity to reflect on variations as against the latest set budget and reflect on the impact that these variations may have over the period covered by the council’s Medium Term Financial Plan (MTFP).

3. Furthermore, the Council’s financial planning process supports the delivery of the corporate objectives and the setting of the annual budget, and its performance is an important element of delivering the overall Corporate Plan.

4. The Council’s statutory Statement of Accounts will be completed and signed by the Responsible Financial (S151) Officer and will be presented as final to the Audit Committee following the completion of an external audit. Should there be any significant variations from the figures presented in this report, they will be highlighted at that Committee. The Outturn position now presented is in management format.

Budget Outturn – General Fund

5. The overall General Fund Net Budget Requirement (Revenue) provisional outturn position confirms a spend of £22.040 million against an original budget of £24.513 million. A positive variation of £2.473 million.

6. Within those figures, the net spend at Service Portfolio level is £0.615 million below the original budgeted sum for the year (£21.683 million spend as against £22.298 million original budget).

7. Further outturn variations, when compared against the original budget, totalling £1.858 million have occurred outside of the Service Portfolios mainly due to additional interest earnings of £1.287 million above the originally budgeted sum, a £303,000 reduction in Minimum Revenue Provision, £93,000 less interest payable costs and a reduction of £175,000 in revenue financing of the capital programme.

8. In addition, business rates income exceeded the original budget by £124,000, additional Government Grants of £45,000 were received and £724,000 was transferred back from sums allocated to reserves in previous years.

9. These positive variations, totalling £3.366 million, mean that the General Fund has been able to:

· enhance the Devolution and Local Government Reorganisation Reserve, approved by Cabinet in February, by £350,000 (total £500,000), to ensure we deliver the best possible outcomes for the New Forest.

· allocate up to £500,000 to welfare improvements across the Council’s depot estate, supporting our people strategy and reputation as an employer of choice.

· transfer £2.516 million to the Capital Programme Reserve (resulting in overall annual movement of this reserve from a balance of £10.573m as of 31/3/24, to a balance of £7.989m as of 31/3/25).

10. Rephasing to future years, included in the outturn position, totals £1.035 million and includes:

· Local Plan Grants £298,000

· Totton Commercial Investment £157,000

· Homes for Ukraine Support £139,000

· Economic Development Planning Skills Grant £100,000

· Improve Digital Planning Grant £63,000

· Homes for Afghans Support £62,000

· CCTV £51,000

· Other £165,000

11. The Financial Monitoring reports presented through Cabinet during the year included the rationale for the in-year variations and the summarised position is shown within Appendix 1, with further detail on the new outturn General Fund variations being shown by portfolio within Appendix 2.

12. In addition to the rephased elements detailed above (£1.035 million; paragraph 10) each portfolio has a number of new expenditure and income variations positively totalling £1.527 million net. Full details can be found at Appendix 2, but the most significant variances are as follows:

· Health and Leisure Centres (Community and Wellbeing) -£257,000: The council invested an additional £190,000 in asset maintenance partly supported by an extra £107,000 of income. Furthermore, £362,000 less was required to support the energy pain share contract provision with our leisure partner with other minor leisure related variances totalling £22,000 net.

· Car Parking (Environment and Sustainability) £200,000: £93,000 of extra costs predominately regarding maintenance of car parks and vehicle hire were incurred throughout the year. Furthermore, there was a shortfall of £107,000 car parking income against budget.

· Refuse and Recycling (Environment and Sustainability) -£325,000: Additional grant funding to support the new waste service roll out totalling £202,000 was received at the end of the year. Final income figures relating to glass, trade and special collections provided £157,000 more than budgeted expectations. These were mitigated partly due to minor overspends relating to operational costs (£34,000).

· Waste Strategy (Environment and Sustainability) -£121,000: Primarily as a result of vacant posts in the service relating to waste strategy resource, waste advisor and technical support posts. These savings have been incorporated into the MTFP for 2025/26 following a restructure of the service which removed these posts.

· Economic Development (Planning and Economy) -£265,000: Predominately due to vacant posts but also includes associated supplies and services underspends.

13. The original General Fund Capital Programme budget was set at £16.579 million. This was increased to £20.545 million via financial monitoring throughout the year to take into account rephased amounts from 2023/24 and new in year requirement updates. The outturn position confirms a spend for the year of £17.787 million.

14. The Council remains committed to delivering the capital programme, consequently rephasing budgets to future years as part of the outturn position is proposed totalling £1.010 million. Additionally, project savings were £1.748 million in 2024/25, with further details found at Appendix 4.

15. This results in a year-end variation in comparison to the revised budget of -£2.758 million.

Budget Outturn – Housing Revenue Account

16. The Housing Revenue Account provisional position confirms income for the year of £36.752 million (an increase of £565,000 from the original budget) and revenue spend for the year of £21.265 million (a decrease of £681,000 from the original budget). After taking these variations into account, and after allowing for net transfers to earmarked reserves of £151,000 and contributions to capital of £14.202 million, this results in an overall surplus for the year of £1.436 million, with this sum being transferred to the Acquisition and Development reserve.

17. Full details can be found at Appendix 3, but the most significant variances are as follows:

· General Management -£407,000

· Cyclical Maintenance -£188,000

· Housing Scheme and Temporary Accommodation -£163,000

· Capital Financing Costs -£103,000

18. The original Housing Revenue Account Capital Programme budget was set at £32.380 million. This was reduced via financial monitoring through the year to £32.180 million. The outturn position confirms a spend for the year of £28.652 million. Outturn project underspends, primarily on the Major Repairs and Decarbonisation works were £2.607 million, with project rephasing to future years relating to Major Structural Refurbishments totalling £0.921 million. Further details can be found at the foot of Appendix 4.

Corporate plan priorities

19. Regular monitoring and reporting of our financial activity including adjusting budgets whilst maintaining a balanced medium term financial plan (MTFP), ensures we are being financially responsible and supports our Corporate Plan which underpins the delivery of all our priorities.

Options appraisal

20. In consultation with the s151 Officer a review of the items eligible for rephasing was undertaken to determine those carried forward to support specific deliverable schemes.

21. Furthermore, the council could choose now to allocate the £3.366 million surplus in the general fund to alternative reserves or other council initiatives, but in consultation with the Cabinet those currently proposed best support the council’s current priorities. Further exploration of options to utilise the additional funds will be carried out during year, and specifically during the budget preparation process for 2026/27.

22. Additionally, the HRA surplus could be earmarked differently but given the extensive development programme it remains appropriate to enhance the Acquisition and Development reserve (in the knowledge that the reserve will support the financing of 2025/26 Capital Programme).

Consultation undertaken

23. Internal consultation between finance officers, service managers and budget holders has determined the provisional outturn data presented in the report.

Financial and resource implications

24. This is a financial report with budget implications already detailed and considered in the main body of the report.

Legal implications

25. There are no legal implications arising directly from this report.

Risk assessment

26. The provisional outturn figures are prepared in good faith and in line with accounting practice. Some figures are based on estimates and assumptions in consultation with services and all figures are subject to final confirmation following the conclusion of the external audit. Therefore, there is a risk some figures may change. Any changes will be reported to Audit Committee.

Environmental / Climate and nature implications

27. There are no environmental implications arising directly from this report.

Equalities implications

28. There are no equality implications arising directly from this report.

Crime and disorder implications

29. The in-year underspend (£51,000) relating to the council’s CCTV project has been rephased into 2025/26 to ensure delivery is achieved.

Data protection / Information governance / ICT implications

30. There are no data protection, information governance or ICT implications arising directly from this report.

Appendices:

Background Papers:

Appendix 1 – General Fund Outturn 2024/25

Appendix 2 – Variation Analysis General Fund Outturn 2024/25 – Portfolio Summary