URL: https://brentwood.moderngov.co.uk/ieDecisionDetails.aspx?ID=1262

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The purpose of the report is to set out the forecast revenue and capital budget positions as at Q2 for 2024/25 and to give an overall financial update for the Council.   The commentary of the report does not attempt to cover all budgetary changes but draws attention to the key factors affecting net expenditure differences.   The General Fund is forecasting a surplus position of £570k. A significant cause of this underspend is the £237k exceeded income for Investment properties. The result of a surplus budget is the general fund working balance will increase.   The Housing Revenue Account (HRA) is currently forecasting a surplus position of £14k. There is an overspend due to the rebuild of the Housing system MRI, but this is more than offset by income being forecast to come in higher than budgeted.   The overall capital programme is forecast to underspend by £14.4mil. This is mainly due to delays of the SHDP. The total underspend will be considered as slippage into next year's programme.   The current financial backdrop poses further financial risks to the Council’s budget. It should be noted that the Local Government Association has issued a statement “Ahead of the Budget, the LGA has made the case for government to address the cost and demand pressures, which have pushed many councils towards the financial edge. This statement can be found on LGA website: www.local.gov.uk.   For Brentwood, there are further financial risks to pay inflation forecasts as well as cost pressures from the previous high rates of inflation. The high inflation rates, and national living wage pressure will have further impact onto the ongoing budgets.   Whilst the Council is not anticipating the need to reduce any services the financial position will have to be monitored over the year and will make the MTFS for 2025/26 and beyond even more of a challenge.   The recommendation was MOVED by Cllr Kendall and SECONDED by Cllr Mayo. A vote was taken by a show of hands and was RESOLVED UNANIMOUSLY:   R1. The recommendation is for the report to be noted.   REASONS FOR RECOMMENDATIONS Financial monitoring of the budget throughout the year complies with the duties under the Local Government Act 2003, the Housing Act 1985, the Local Government and Housing Act 1989 and the Local Government Finance Act 1992 and subsequent legislation.

Date of Decision: December 4, 2024