Issue - meetings

The Director of Finance, Resources and Business Improvement introduced the report, stating that there was an estimated £800,000 overspend on Temporary Accommodation (TA) for the current financial year, with the Council projecting an overall overspend of £300,000 for the year. In September 2023, revenue budget proposals were presented to the Policy Advisory Committees and Cabinet that would generate just under £1 million in savings to produce a balanced budget. It was assumed that Council Tax would be increased by 3%.

The Local Government Finance Settlement had included a 3% increase in core spending power for all Councils, separate to any council tax increases, through the Funding Guarantee (FG). The FG totalled £3.3 million and as a one-off funding source, would be allocated to supporting the capital programme in line with the Council’s usual practice for one-off funding. The funds would support the subsidy required for the housing units as part of the 1000 Affordable Home Programme (AHP). The capital programme was ambitious, with risks relating to funding and delivery highlighted given inflation rates, building costs and the overall requirements in managing the capital programme, however mitigating measures were in place.

In response to a question, the Director of Finance, Resources and Business Improvement confirmed that using the Funding Guarantee to support the delivery of the 1000 AHP would not impact revenue spending, as the Council had identified the savings required to produce a balanced budget without reducing service provision.

RESOLVED: That the risk assessment of the Budget Strategy provided at Appendix A to the report, be noted.