Decision
Analysis
outcome: The Council approved various financial decisions including creating a Strategic Budget Contingency reserve, applying flexible capital receipts strategy, and noting deficits in the Collection Fund and Dedicated Schools Grant.
summary: The financial outturn reports in relation to revenue, capital, and treasury management are being considered by the Council.
topline: The Council has decided to approve various financial decisions including creating a Strategic Budget Contingency reserve and applying flexible capital receipts strategy.
reason_contentious: This issue may be contentious as it involves financial decisions that impact reserves, balances, and funding for various projects.
affected_stakeholders: ["Council members", "Taxpayers", "Schools receiving Dedicated Schools Grant"]
contentiousness_score: 6
political_party_relevance: There are no explicit mentions of political parties in the decision.
URL: https://democracy.kirklees.gov.uk/ieDecisionDetails.aspx?ID=12907
Decision Maker: Council, Cabinet
Outcome:
Is Key Decision?: Yes
Is Callable In?: Yes
Purpose: To consider and note the financial outturn reports in relation to revenue, capital and treasury management and make rollover decisions, as appropriate, based on the finalised financial position.
Content: To consider and note the financial outturn reports in relation to revenue, capital and treasury management and make rollover decisions, as appropriate, based on the finalised financial position. RESOLVED – That the report be referred to Council with a recommendation that; General Fund 1) Note the improved revenue outturn position of +£5.6m overspend for 2024/25 (+£9.9m at Q3); 2) Note the year end position on reserves and balances of £61.0m (excluding Statutory Reserves), particularly that the level of general reserve remains unchanged at £25m (paragraphs 3.2.19- 22); 3) Approve the creation of the Strategic Budget Contingency reserve (paragraph 3.2.21), with a balance of £3.5m at 31/3/25; funded from the Voluntary Revenue Provision Reserve; 4) Note the application of the Councils flexible capital receipts strategy to the value of £5.5m applied against eligible transformation costs in 2024/25 thereby reducing revenue expenditure, in accordance with the agreed budget (paragraph 3.2.32); 5) Note the regular monitoring and review of corporate reserves in 2025/26 to be reported to Cabinet as part of the Quarterly financial monitoring cycle; 6) Note the year end deficit position on the Collection Fund of £10.2m; HRA 7) Note the HRA revenue outturn position for 2024/25 as an underspend of £1.3m reducing the contribution to capital in 24/25 by £1.3m. Note the year end reserves balance of £30.6m compared to £33.9m in 23/24; Capital 8) Note the Council capital outturn position at £140.6m for 2024/25 9) Approve the £13.7m capital slippage from 2024/25 to 2025/26 and removal of £0.4m uncommitted rollover from the Capital Plan (paragraph 3.2.33); 10) Note the revised capital plan for the period 2025/26 onwards after taking into account the re-phasing of schemes and additional grant funding assumptions (Appendix 4a: Summary Capital Plan and Appendix 4b: Detailed Capital Plan); Dedicated Schools Grant (DSG) 11)Note the cumulative deficit on the DSG of £63.8m, an increase of £20.1m from the previous year, and that this deficit was excluded from the Council’s balance sheet as a result of the Statutory Override as set out in the Local Authority Capital Finance and Accounting Regulations. Also to note the recent two year extension to Statutory Override, which now ends in March 2028 pending further consultation updates from Government expected in Autumn 2025. Treasury Management 12)Note the Review of Treasury Management activity for 2024/25 (Appendix 5)
Date of Decision: July 8, 2025