Issue - meetings

Committee considered a report which provided an update on the Council’s financial position following budget monitoring for Quarter 1 – April to June 2022/23.

Appendix 1 to the report highlighted that the original budget for 2022/23 showed a funding deficit of £0.082m.  The current budget showed this had reduced to £0.008m surplus after the Council Tax increase and other small movements had been included.  As savings were identified and secured, they were moved into the relevant cost centres within the main General Fund Directorates.  Appendix 2 detailed the net cost of each cost centre within the Directorates.

It was noted that the Resources Directorate showed a favourable variance of £0.229m and the Strategy and Development Directorate showed an adverse variance of £0.197m.  The overall position at the end of Quarter 1 showed that there was a favourable variance of £0.032m, with most identified variances as a consequence of timing.  However, when officers start work with budget managers during the next quarter to compile a revised budget for 2022/23, it was expected that there would be necessary increases to fuel, utilities and pay budgets as a minimum, for price increases mainly caused by the current level of inflation.

The Treasurer referred to a Government Funding Update as detailed in the report and highlighted that Michael Gove had promised to give local authorities greater “financial certainty”, and a “2-year financial settlement would be introduced next year”, which it was assumed would cover 2023/24 and 2024/25.

Moved by Councillor Tom Munro and seconded by Councillor Graham Parkin

RESOLVED that (1) monitoring position of the General Fund at the end of the first quarter as detailed on Appendix 1 (a net favourable variance of £0.032m against the profiled budget) and the key issues highlighted within the report, be noted,

(2) the position on the Housing Revenue Account, the Capital Programme and Treasury Management at the end of the first quarter (Appendices 3, 4 and 5), be noted.