URL: https://calderdale.moderngov.co.uk/ieDecisionDetails.aspx?ID=311

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Councillor Dacre, Cabinet Member with responsibility for Resources presented a written report of the Director, Resources and Transformation which summarised the forecast the year-end financial position based upon budget monitoring at the quarter ending 30th September 2024. The report provided an update on both the revenue budget and the Capital Programme and progress on achievement of the savings approved at Budget Council in February 2024.   The Council, in common with local government as a sector, continued to face sustained pressures of increased demand for services, greater complexity of need in local communities and reduced revenue budgets. A significant proportion of the Council’s budget was allocated to meet high levels of complexity and acuity of need, which had not abated since the pandemic with a growing trajectory. This was reflected in the latest forecast position which estimated an end of year overspend of £10.8m.   The report provided Cabinet an update on the management action being taken to improve the overall forecast and reduce the overspend by the end of the year.   The Council’s Financial Procedure Rules required the financial position to be reported to Cabinet a minimum of three times a year for consideration and to approve any significant budget changes. The latest revenue summary forecast for 2024/25 was shown by directorate in Appendix 1 (and more detailed supporting information in a presentation format could be found in Appendix 4). Appendix 3 set out the revised Capital Programme for approval.   The report provided background information and outlined options considered, consultation and financial, legal, environmental, health, economic, equality, and diversity implications.   During discussions Members advised that because of central government plans it had been expected that the spending on mandatory services would exceed income at some point and credited local government for putting measures in place to be able to continue services for as long as it had.  Members reinforced that the overspend was not because of frivolous spending, but the demand on services where there was legislation in place for residents to expect services, and it was explained that Councils did not have the funding to meet those demands.    Members advised that 72% of the Council’s budget was spent on adults’ and children’s services and noted that many residents were not aware of those statutory services and expectations, as many people had little connection with them but were aware of highways, parks and waste collections which had to be funded from the remainder of the budget.   Members advised that this was a particularly difficult year for Calderdale and it would be hard to balance the books, but they would try to make sure the impact on reserves was as small as possible.   Members noted that the new government had been in place for 22 weeks, and that they were interested in and looking forward to seeing what the first budget settlement in December would look like.   RESOLVED that:   (a)    the deterioration of the revenue forecast to 31 March 2025, based upon the analysis of the Quarter 2 monitoring information, be noted;   (b)    the management action being taken to reduce expenditure during the remainder of the financial year to improve the final position for 2024/25, be noted;   (c)     the positive progress against the approved savings for 2024/25 in Appendix 2, be noted; and   (d)    the revised Capital Programme of £329.935m for the period 2024/25 to 2026/27 as detailed in Appendix 3, be approved.  

Date of Decision: December 9, 2024