URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2572

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: This report provides the Council’s financial performance as at Period 2 (May 2025) for the General Fund, Housing Revenue Account (HRA) and the Capital Programme.  It also requests the Executive Mayor and Cabinet to approve slippage from 2024-25 for the capital programme.  

Content: This report provides the Council’s financial performance as at Period 2 (May 2025) for the General Fund, Housing Revenue Account (HRA) and the Capital Programme.  It also requests the Executive Mayor and Cabinet to approve slippage from 2024-25 for the capital programme.   For the reasons set out in the report, the Executive Mayor and Cabinet are AGREED:   2.1 to note the General Fund revenue budget outturn is forecast at Period 2 to underspend at financial year end by £16.5m. This would reduce the necessary level of capitalisation directions from £136m to £119.5m.   2.2 to note that service directorates are asked to reduce their net expenditure so that the annual budget can be balanced with reduced use of capitalisation directions, including achievement of the £27.3m Stabilisation Plan target as set out from paragraph 4.15. It should not be underestimated what a challenge this will be against the background of increased demand pressures which are continuing to build across local government as well as increased market prices.   2.3 to note the unfunded local government cost pressures that exist nationally, regionally and locally relating to increases in demand and market prices which need to be addressed by Government changes to policy and/or funding levels.   2.4 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.3m (84.9%) against the total savings target of £25.1m as set out in paragraph 4.101.   2.5 to note the Housing Revenue Account (HRA) revenue budget forecast outturn is a breakeven position.   2.6 to approve slippage from 2024-25 for the General Fund capital programme of £30.7m and HRA capital programme of £13.1m.   2.7 to note the General Fund capital programme 2025-26 forecast underspend of £28.7m (10.2%) against the revised budget (including slippage to be agreed through this report) of £281.9m. The expected decrease in capitalisation direction usage owing to the Stabilisation Plan accounts for £27.3m of this underspend, however, only £17.2m of this has been evidenced to date at Period 2.   2.8 to note the HRA capital programme 2025-26 forecast breakeven position against the revised capital budget (including slippage to be agreed through this report) of £120.5m.   2.9 to note the Council’s historic borrowing and subsequent debt burden and national, regional and local service pressures continue to be critical to the nonsustainability of the Council’s revenue budget as set out from para 4.118. Dialogue with MHCLG continues around options of further financial support from Government to ensure the Council can deliver sustainable local government services.   2.10 to note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained. 2.11 to note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.

Date of Decision: September 24, 2025