The Director of Finance,
Resources and Business Improvement introduced the report, stating
that there had been no major changes since the previous update was
provided to the Committee. There was a significant overspend on
temporary accommodation, with a budget gap of £925,000
identified for the 2024/25 municipal year but good progress was
being made on closing the gap. The risks relating to the capital
and affordable housing (AH) programmes were highlighted within the
report.
As there had been instances of
Local Authorities issuing Section 114 notices recently, a rating
had been included of all English Local Authorities which identified
the likelihood of issuing a Section 114 notice. This was based on
an authority’s expenditure versus reserve levels, with the
Council ranked 237 of 333, highlighting its relatively secure
position.
In response to questions, the
Director of Finance, Resources and Business Improvement confirmed
that the relevant teams within the Regeneration and Place
directorate were working to identify further opportunities to
source properties and mitigate the cost of providing temporary
accommodation, with it being noted that there were few
opportunities to secure such properties given high property values.
Work was underway to calculate the precise level of subsidy
required to support the AH programme through opening the Housing
Revenue Account, as without the subsidy the programme would yield a
negative return for the Council.
RESOLVED:
That the risk assessment of the Budget Strategy as
provided at Appendix A to the report, be noted.