Decision

The Cabinet has decided to approve the use of reserves to finance a £10.155m overspend in the Council's revenue budget for 2024/25.

Analysis

outcome: The Cabinet approved the use of Reserves to finance the overspend position.

summary: The decision at stake is the approval of the use of reserves to finance a £10.155m overspend in the Council's revenue budget for 2024/25.

topline: The Cabinet has decided to approve the use of reserves to finance a £10.155m overspend in the Council's revenue budget for 2024/25.

reason_contentious: This issue may be contentious as it involves significant financial pressures faced by the Council, particularly for social care services and homelessness.

affected_stakeholders: ["Council members", "Social care service users", "Homeless individuals"]

contentiousness_score: 7

political_party_relevance: There are no explicit mentions of political parties or political influence on the decision.

URL: https://committees.oldham.gov.uk/ieDecisionDetails.aspx?ID=5477

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Cabinet considered a report of the Director of Finance which provided Members with an overview of the Council’s revenue budget position for 2024/25, which reports an overspend of £10.155m. The report also highlighted the main movements from the previous forecast for the year, which was previously reported to the Cabinet on 24th March 2025.   Cabinet was advised that the revenue overspend position for the financial year 2024/25 was £10.155m, which represented an improvement of £4.442m from the position previously reported to Cabinet. This financial monitoring report followed on from the previously reported positions and detailed the year end position. This outturn position thus reflected the significant financial pressures being faced by the Council particularly for social care services and homelessness.   An update on the 2024/25 outturn position was detailed within Annex 1, to the report. Information on the year end position of the Dedicated Schools Grant (DSG) and the Housing Revenue Account (HRA) was also included within the report.   In addition, Cabinet was informed that the report outlined the year end capital spending position for 2024/25 for approved schemes. The revised capital programme budget for 2024/25 was £87.460m, with actual expenditure to 31st March 2025 at £81.791m.   Options/Alternatives considered: The Director of Finance advised that the Options that Cabinet might consider in relation to the contents of this report were: a.    To agree the revenue and capital positions presented in the report and agree the use of Reserves to balance the revenue budget. b.    To note the outturn position for the Dedicated Schools Grant and the Housing Revenue Account. c.    To propose an alternative to balance the revenue budget for 2024/25. The Preferred Options were a. and b. detailed above.   Resolved: That the Cabinet: 1.    Notes the 2024/25 outturn position as £10.155m overspend for the year. 2.    Approves the use of Reserves to finance the overspend position. 3.    Notes the outturn position for the Dedicated Schools Grant and the forecast for 2025/26. 4.    Notes the 2024/25 outturn position for the Housing Revenue Account. 5.    Notes the capital spending position for 2024/25 as at 31 March 2025.

Date of Decision: July 21, 2025