Agenda item

N Copley, Director of Finance, presented the Corporate Finance and Performance Management Update.

The key points were noted as follows:-

·         The Council’s 23/24 budget was agreed by Full Council on 23rd February 2023.

·         The current forecast was for a year-end cost pressure in the region of £17.5M.  This was significantly more than anticipated at budget setting time and predominantly related to further additional pressures being experienced in Children’s Social Care. 

·         It was likely that some of these pressures would continue over the medium term, therefore it remained imperative that a transformation and efficiency plan was implemented.

·         The budget approved in February 2023 assumed an employee pay award of 4% (equivalent to a cost of £4.0M), but it was highlighted at the time that this may not be sufficient given the ongoing cost-of-living crisis. The National Employers Association made a “full and final pay offer”, of at least £1,925 (3.88% headline offer) on all NJC pay points 1 and above effective from 1st April 2023 which was still being deliberated by the Unions.

In the ensuing Member discussion, the following key points were noted:-

·         Teams across finance and procurement had a stringent checklist for any spend over £10,000 and were currently investigating if spending was needed or could be sourced in a different way.

·         The Council had a clear focus on the transformation programme, looking at how to fundamentally change the way services were delivered with a collective responsibility on delivering a balance budget.

·         Three quarters of the Council’s debt was fixed rate was provided cost certainty and therefore the Council had been less adversely impacted by recent volatility in the markets.

·         In regard to the monies as part of the SYMCA Devolution Deal, the Council was planning on drawing down the funds for investment purposes.

RESOLVED that Members note that report.