Issue - meetings

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.