Issue - meetings

The Chief Operating Officer to present a report which provides details of the council’s overall finance and performance position for the period 1 April 2021 to 31 December 2022, together with an overview of any emerging issues.

Resolved:  That the finance and performance information, and the actions needed to manage the financial position, be noted.

Reason:     To ensure that expenditure is kept within the approved budget.

The Chief Operating Officer presented a report which provided details of the council’s overall finance and performance position for the period 1 April 2021 to 31 December 2022, together with an overview of any emerging issues.

Due to ongoing budget pressures, particularly in adults’ and children’s social care, plus increases in interest rates and rising inflation, a significant overspend was forecast.  The gross financial pressures facing the council were projected at £8.5m, but after mitigation it was considered this could be reduced to £3.7m.  The council had £6.9m of general reserves to call on should the out-turn not be within the approved budget. The net budget was £135m, with £6.4m savings to be achieved to reach a balanced budget.  The position within each directorate was summarised in Table 1 at paragraph 13 of the report and detailed in Annex 1. 

With regard to performance, progress was reported against the core set of strategic indicators in the Council Plan.  Nine indicators showed an improving direction of travel while two showed a worsening direction of travel, as summarised in paragraph 22 of the report and detailed inAnnex 2.

In commending the report to Members, the Executive Member for Finance & Major Projects thanked the Finance team for their work and highlighted performance improvements in relation to Customer Services, Education, city centre shop vacancies / footfall and mental health services in employment.  The Executive Member for Economy & Strategic Planning also highlighted improvements in his portfolio area, noting the challenges ahead and the need to continue making the case for long term government investment in the North.

Resolved:  That the finance and performance information, and the actions needed to manage the financial position, be noted.

Reason:     To ensure that expenditure is kept within the approved budget.