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Agenda item

Budget Monitoring Report Month 01, 2022/23

Report of the Director of Finance and Commercial Services

Decision:

8.1

This report brings the Committee up to date with the Council’s financial position as at Month 1 2022/23. The report also reports the proposed budget timetable for the development of the 2023/24 budget.  It was noted that next update report to Committee would identify details of the areas of discretionary spend available to this Committee.

 

 

8.2

RESOLVED UNANIMOUSLY: That the Economic Development and Skills Policy Committee Policy Committee:-

 

 

1. notes the Council’s challenging financial position and the Month 1 position;

 

2. notes the budget timetable set out in this report including the requirement for the Committee to plan to develop budget proposals over the course of the summer;

 

3. notes that the Strategy and Resources Committee agreed at its 31 May 2022 meeting to “require any Policy Committee that is forecasting an overspend on their budget to develop an action plan to address the overspend in-year and ask the Finance Sub-Committee to monitor both the development of any required action plans and delivery against them”;

 

4. continues to closely to manage and monitor expenditure in line with budget expectations and ensure forecasts represent current financial conditions.

 

 

8.3

Reasons for Decision

 

 

8.3.1

Under section 25 of the Local Government Act 2003, the Chief Finance Officer of an authority is required to report on the following matters:

• the robustness of the estimates made for the purposes of determining its budget requirement for the forthcoming year; and

• the adequacy of the proposed financial reserves.

 

 

8.3.2

There is also a requirement for the authority to have regard to the report of the Chief Finance Officer when making decisions on its budget requirement and level of financial reserves.

 

 

8.3.3

By the law the Council must set and deliver a balanced budget, which is a financial plan based on sound assumptions which shows how income will equal spend over the short- and medium-term. This can take into account deliverable cost savings and/or local income growth strategies as well as useable reserves. However, a budget will not be balanced where it reduces reserves to unacceptably low levels and regard must be had to any report of the Chief Finance Officer on the required level of reserves under section 25 of the Local Government Act 2003, which sets obligations of adequacy on controlled reserves.

 

 

8.4

Alternatives Considered and Rejected

 

 

8.4.1

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.

 

Minutes:

7.1

This report brings the Committee up to date with the Council’s financial position as at Month 1 2022/23. The report also reports the proposed budget timetable for the development of the 2023/24 budget.  It was noted that next update report to Committee would identify details of the areas of discretionary spend available to this Committee.

 

 

7.2

RESOLVED UNANIMOUSLY: That the Economic Development and Skills Policy Committee Policy Committee:-

 

 

1. notes the Council’s challenging financial position and the Month 1 position;

 

2. notes the budget timetable set out in this report including the requirement for the Committee to plan to develop budget proposals over the course of the summer;

 

3. notes that the Strategy and Resources Committee agreed at its 31 May 2022 meeting to “require any Policy Committee that is forecasting an overspend on their budget to develop an action plan to address the overspend in-year and ask the Finance Sub-Committee to monitor both the development of any required action plans and delivery against them”;

 

4. continues to closely to manage and monitor expenditure in line with budget expectations and ensure forecasts represent current financial conditions.

 

 

7.3

Reasons for Decision

 

 

7.3.1

Under section 25 of the Local Government Act 2003, the Chief Finance Officer of an authority is required to report on the following matters:

• the robustness of the estimates made for the purposes of determining its budget requirement for the forthcoming year; and

• the adequacy of the proposed financial reserves.

 

 

7.3.2

There is also a requirement for the authority to have regard to the report of the Chief Finance Officer when making decisions on its budget requirement and level of financial reserves.

 

 

7.3.3

By the law the Council must set and deliver a balanced budget, which is a financial plan based on sound assumptions which shows how income will equal spend over the short- and medium-term. This can take into account deliverable cost savings and/or local income growth strategies as well as useable reserves. However, a budget will not be balanced where it reduces reserves to unacceptably low levels and regard must be had to any report of the Chief Finance Officer on the required level of reserves under section 25 of the Local Government Act 2003, which sets obligations of adequacy on controlled reserves.

 

 

7.4

Alternatives Considered and Rejected

 

 

7.4.1

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.

 

 

Supporting documents: