Decision details

RESOLVED:

That the latest budget forecasts of the General Fund (section 4), Capital (section 5), and HRA (section 6) be noted.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Yes.

PORTFOLIO:

Finance, Investment & Corporate Services / All

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST (S):

None.

DISCUSSION:

The Portfolio Holder presented the financial monitoring report, highlighting that it provided an update to the end of the third quarter of the financial year.  He felt that on the whole the Council was in a good, stable position financially. However, he drew attention to the Housing Revenue Account, recognising the high level of expenditure in this area to provide more housing which was of benefit to residents.

The Section 151 officer outlined that the report covered the financial position of the General Fund budget, Capital Programme and HRA for the period April to December 2022 inclusive.  Section 4 of the report and Appendix 1 and 2 set out the breakdown in General Fund variations.  This had resulted in a reduction in outturn spend compared to the previous monitoring report.

The General Fund showed a forecast spend of £21.373 million for the year, an overall increase of £699,000 from the original budget estimate.  The Capital Programme was being reduced marginally to £41.599 million for the year.  The Council was on track to deliver a significant programme this financial year.

The HRA budget was set out in section 6 of the report.  It showed signs of financial pressure, with a reduction in income and an increase in cost pressures. Any ongoing variations would be considered in the context of the 2023/24 budget which would come forward to the Cabinet on 15 February.

It was recognised that it was forecast to generate an additional £84,000 as a result of increases in recycling income and a member questioned whether this would continue.  In response the Portfolio Holder reported that HCC would be providing a new MRF for the sorting of recycling materials, however, the final details had not been provided by the County regarding the proposed financial arrangements with the District Council on the sale of recycling materials.