The Strategy & Resources Committee has decided to approve budget adjustments and carry forward unused funds to support service delivery amidst pressure from Local Government Reorganisation.

URL: https://tandridge.moderngov.co.uk/ieDecisionDetails.aspx?ID=292

Decision Maker: Strategy & Resources Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: A report was presented to the Committee outlining the 2024/25 Financial Outturn position for both the Committee and the Council. Officers highlighted the following key points:   ·         An underspend of £141,000 was reported against the four Policy Committees’ overall budget of £12.9 million. ·         The Council’s funding position had improved by £600,000 due to the recognition of the 2021/22 business rates pooling gain. Additionally, a £445,000 contingency provision remained unused. ·         Officers recommended that the total unused funds of £1.2 million be carried forward to help mitigate the financial impacts of Local Government Reorganisation in the current year and in 2026/27 and support the delivery of Council priorities. Officers would work collaboratively with Group Leaders, Committee Chairs, and the Member Reference Group (MRG) to determine the most effective use of these funds. ·         The surplus figure may increase pending the outcome of a review of the balance held in the Investment Performance Equalisation Reserve. ·         A £0.7 million overspend on planning appeals had been reported separately to the Planning Policy Committee and was included in the totals set out. ·         A provision of £0.4 million had been made in respect of external audit costs related to the 2019/20 and 2020/21 audit years; fees for which remain under dispute. ·         Overspends were offset by a favourable variance of £0.9 million across investment income and interest payable. ·         Delivery of 82% of the Council’s savings plan had been achieved. ·         Officers sought approval for budget adjustments, including: ·         £191,000 to provide financial support to the Planning Enforcement Service. ·         £90,000 for the transfer of a Revenues and Benefits grant to corporate funding. ·         With regard to capital, a net slippage of £4.4 million was reported, along with a recommended carry-forward of £5.4 million. Additional capital funding received during the year reduced the reliance on the Council’s own capital resources and increased carry-forward capacity. The following responses were given to questions and comments from the Committee:   ·         In respect of the £1.2 million of unused funds, it was agreed that the funds should be directed to meet pressures from LGR and maintaining or strengthening delivery of services across 2025/26 and 2026/27. ·         It was confirmed that any proposed expenditure would be planned in consultation with the MRG and Committee Chairs and subsequently reported back to the Committee. ·         It was noted that further restrictions on budgets and expenditure were anticipated following the budget-setting process for 2026/27 as a result of LGR.   R E S O L V E D – that the Committee:   1.    noted the Council’s financial outturn position for 2024/25.   2.    approved that £445k unused contingency, £741k outturn surplus and any balance released from the Investment Performance Equalisation Reserve be carried forward to 2025/26 and 2026/27 to support the delivery of services against increasing pressure from LGR.   3.    approved proposals to deploy the amount [in resolved item 2] be brought to a future Committee for consideration, following consultation with the Member Reference Group. Should proposals require investment before the next appropriate Committee, authority be Delegated to the Chief Executive and S151 Officer to approve funding following consultation with Group Leaders and the relevant Committee Chairs.   4.    approved budget virements of:   a.    £90k for Revenues and Benefits (Strategy & Resources Committee), from corporate items (Strategy & Resources Committee) for reclassification of grant from service-specific to core funding as reported in paragraph 13.   b.    £191k for Planning Enforcement, (Planning Policy Committee), from the 2024/25 Service Capacity Fund, which is held within Corporate Items (Strategy & Resources Committee) as set out in paragraph 27.   5.    approved Capital carry forwards of £5.4m with a revised phasing to be reported during the September Committee cycle.

Date of Decision: June 26, 2025