Agenda item

8.1

The report brings the Committee up to date with the Council’s financial position as at Month 5 2022/23.

8.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee notes the Council’s challenging financial position as at the end of August 2022 (month 5).

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

8.1

The Director of Finance and Commercial Services presented a report bringing the Committee up to date with the Council’s financial position as at Month 5 2022/23.

8.2

RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee notes the Council’s challenging financial position as at the end of August 2022 (month 5).

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 balanced budget and to ensure that in-year income and expenditure are balanced. No other alternatives were considered.