Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
To consider the projected year end financial
position based on performance to the end of Quarter 2 2022/23 and
officers planned actions to ensure a balanced budget by the end of
the financial year.
The Deputy Leader and Finance and Assets Portfolio Holder presented the Corporate Financial Monitoring report and requested that members note the projected year end position based on performance to the end of Quarter Two 2022/23 and officers planned actions to ensure a balanced budget by the end of the financial year.
The Finance and Assets Holder drew members’ attention to the economic crisis and significant inflation, which had impacted the Council. He highlighted a salary budget increase of £673,000 as a result of the pay award and noted that revenue and budget monitoring had identified a year-end overspend of £907,000 due to increased costs pressures and reduced income projections. The Finance and Assets Portfolio Holder added that officers had carried out an intense and detailed review of all 2022/23 budgets to identify budget pressures and potential budget savings alongside the usual financial report, which had resulted in a number of mitigations aimed at reducing the budget deficit a projected £116,000.
Members’ attention was drawn to the capital programme full details of which were set out in Appendix 2 to the report. The Finance and Assets Portfolio Holder informed Members that the capital budget approved in February had been increased in April by the Carry Forwards report to Cabinet and by further requests approved by Council in May and November 2022, the updated Capital Programme was attached at Appendix 3 to the report.
The Finance and Assets Portfolio Holder highlighted significant changes to the Procurement Schedule at Appendix 6 to the report, which had been marked to follow on the agenda and circulated prior to the start of the meeting.
The Finance and Assets Portfolio Holder noted that the Quarter Two update was a reminder that the Council was not immune to economic ill wind and thanked officers for their hard work to ensure that the Council was on sound economic footing.
No comments or questions were raised.
RESOLVED – That
(1) The contents of the report and Appendices 1-6 be noted;
(2) Council be requested to approve the budget movements proposed in Appendix 1 and summarised within the report;
(3) Council be requested to approve the revised capital programme as set out in Appendix 3 to the report.
(4) Council be requested to approve the use of reserves and contribution to Reserves as set out in Appendix 4; and
(5) Council be requested to approve the Procurement Schedule at Appendix 6.
Reasons for Decision
This is a corporate financial update which contributes to sound corporate governance and ensuring that financial resources are available to deliver the Council’s corporate priorities. This works towards delivering all of the Council strategic policies of:
· Working across boundaries
· Delivering a balanced community
· A fairer South Lakeland
· Addressing the climate emergency
Alternative Options Considered and Rejected
There are no alternative options for Appendices 1-3. The mitigations proposed in paragraph 3.0.2 represent a balanced approach to offsetting the budget pressures: each could be rejected but replacement mitigations would need to be identified.
Report author: Claire Chouchoulas
Publication date: 09/12/2022
Date of decision: 07/12/2022
Decided at meeting: 07/12/2022 - Cabinet