Agenda item

The Cabinet considered a report of the Corporate Director of Resources which detailedthe forecast revenue and capital outturn for 2024/25, based on the position to 30 September 2024. The report also updated on progress towards achieving MTFP (14) savings in 2024/25 (for copy see file of minutes).

Councillor R Bell, Deputy Leader of the Council and Cabinet Portfolio Holder moved the recommendations set out in the report and thanked Officers for the comprehensive detail within the report and for budget managers managing their respective budgets.

It was pleasing to note cash limit underspends which offset the overall spending forecast. As expected, the forecast overspend in Children and Young People’s Services had risen, and within that, there had been a higher overspend in the Looked After Children budget. The updated forecasts showed the general reserve would be £26.7m at the year end. 4.7% of the net revenue budget and below the minimum level of general reserve. This would require a £1.2m transfer from MTFP support at the year end.

The Leader of the Council seconded the recommendations in the report and explained that robust financial management of the Council had consistently been recognised the Value for Money assessments from our External Auditors. Councillor Hopgood believed Durham to be in the minority in the region and nationally to have this fully signed of before the 30 November statutory deadline, with the majority of councils up and down the country now in audit backstop arrangements and many not having had their 2022/23 accounts signed off.

Despite the significant growth bult into the current year’s budget, which totalled £14.7 million for looked after children placement costs alone, the overspend in Children and Young Peoples services had increased to £9.5 million based on these quarter two forecasts and would need to be picked up corporately.

Many of the inflationary and demand pressures would continue into next year and together with the uncertainty over the financial settlement from the government, the Council would continue to be in a challenging position in terms of budget planning for 2025/26 and the MTFP position going forward.

It was pleasing to note that to 30 September 2024, £120.6 million of capital investment in the county had been delivered, £36 million more than the capital investment delivered to 30 September 2023. This was reflective of the Joint Administration delivering change on the ground despite the financial challenges faced, with new facilities for business, including the developments at NETPark, Sedgefield and South Church, alongside the significant regeneration of Bishop Auckland Highstreet, and improvements in our highways and transport infrastructure across the county, which would provide more and better jobs for our residents.

Councillor Hopgood fully expected total capital investment to surpass the £233 million of capital expenditure delivered last year, investment which dwarfed the previous record levels of capital investment delivered in any one year, both of which were in the Joint Administration’s first two years in charge of this Council and was clear evidence of an administration delivering on its promises and turning plans into action.

Resolved:

That the recommendations in the report be approved.