Agenda, decisions and minutes

28.1

The Senior Capital and Construction Category Manager introduced the report which provided details of proposed changes to the existing Capital Programme as brought forward in Month 3, 2024/25.

28.2

RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee:-

1. That the committee approve the proposed additions and variations to the Capital Programme listed in Appendix 1.
2. That the committee approve the proposed variation to the Capital Programme identified in Appendix 2 subject to a successful outcome of the external funding bid.
3. That the committee approve the acceptance of grant funding as identified in Appendix 2

8.3

Reasons for Decision

8.3.1

The proposed changes to the Capital programme will improve the services to the people of Sheffield.

8.3.2

To formally record changes to the Capital Programme and gain Member approval for changes in line with Financial Regulations and to reset the capital programme in line with latest information.

8.4

Alternatives Considered and Rejected

8.4.1

A number of alternative courses of action are considered as part of the process undertaken by Officers before decisions are recommended to Members. The recommendations made to Members represent what Officers believe to be the best options available to the Council, in line with Council priorities, given the constraints on funding and the use to which funding is put within the Revenue Budget and the Capital Programme.

9.1

The Director of Finance and Commercial Services introduced the report which brought the Committee up to date with the Council’s outturn position for 2024/25 including General Fund revenue position, Housing Revenue Account, and Capital Programme Monitoring (Appendix 2 of the report). The report also provided an update of the Council’s Treasury Management activity (Appendix 3 of the report) and the Collection Fund Account (Appendix 4 of the report).

9.2

Members of the Council’s Senior Leadership team, including the Chief Executive of Sheffield City Council, the Strategic Director of Children’s Services, the Strategic Director of Adults’ Care and Wellbeing and the Executive Director of Neighbourhood Services were in attendance to provide responses to Members’ questions on the budget.

9.3

The Chief Executive of Sheffield City Council gave detail on the main sources of forecast overspend in the Council, in the national context, and emphasised the importance of Future Sheffield in reaching a a sustainable financial position.

9.4

Members asked whether there had been any indication from Central Government following the change in leadership around improvements to Local Government funding. The Director of Finance and Commercial Services stated that there had been no official communication; however, the Council were now aware that the Budget would be published in October although this was expected to be a one-year settlement.

9.5

Members asked whether there was provision for unexpected financial challenges. The Director of Finance and Commercial Services stated that there were reserves allocated for these potential instances. The Chief Executive stated that this report was for Quarter 1 and said that they believed that the budget position would improve throughout the financial year.

9.6

Members asked for further information around overspends in the Adult Health and Social Care portfolio, the Education, Children and Families portfolio and the Housing portfolio.

9.7

The Strategic Director of Adults’ Care and Wellbeing gave an overview of the Adults Recovery Plan. She stated that she was confident that overspend would be reduced over the coming year.

9.8

The Strategic Director of Children’s Services outlined plans to reduce overspend within their portfolio and referenced a continued review of the Home to School transport policy.

9.9

The Executive Director of Neighbourhood Services spoke on efforts within the Housing portfolio to reduce overspend, including utilise void properties as temporary accommodation.

9.10

Members asked if the risk of the removal of grants was being mitigated. The Chief Executive stated more would be known regarding the continuation of grants following the Budget announcement.

9.11

The Director of Finance and Commercial Services stated that the aim was to incorporate Finance and Performance reporting, initially through bringing separate papers to the Finance and Performance Policy Committee and in the longer term to combine the two in one report.

9.12

Members asked for more information on the cost of regeneration in the Fargate area of the city centre. The Senior Capital and Construction Category Manager responded, stating that construction costs had more than doubled nationally. The Chief Executive stated that the cost of staffing and materials had increased overall, resulting in delays to a number of Capital projects. The Chief Executive suggested that those managing these projects present a report to the Transport, Regeneration and Climate Policy Committee on this matter.

9.13

RESOLVED UNANIMOUSLY: That the Finance and Performance Policy Committee:-

1. Note the updated information and management actions on the 2024/25 Revenue Budget Outturn as described in this report.
2. Note the detailed committee budget monitoring information and management actions provided in Appendix 1.
3. Note the updated information and management actions provided by this report on the Q1 2024/25 Capital Programme monitoring as described in Appendix 2.
4. Note the Treasury Management report for Q1 2024/25 as described in Appendix 3.
5. Note the Collection Fund monitoring position for Q1 2024/25 as described in Appendix 4.

9.14

Reasons for Decision

9.14.1

To record formally changes to the Revenue Budget.

9.15

Alternatives Considered and Rejected

9.15.1

The Council is required to both set a balance budget and to ensure that in-year income and expenditure are balanced. No other alternatives were considered.