Agenda item

To receive a report presenting details of the Council’s financial performance for 2024/25.

Executive Councillor: B Mickelburgh.

The Cabinet has:

(a)  considered and commented on the revenue financial performance for the financial year 2024/25 Quarter 1, as detailed in Appendix 1 and summarised in paragraph 3.2 of the report now submitted;

(b)  considered and commented on the capital financial performance for 2024/25 Quarter 1, as detailed in Appendix 2 and summarised in paragraph 3.3 of the report now submitted; and

(c)  considered and commented on the prudential and treasury management indicators for 2024/25 Quarter 1, as detailed in Appendix 3 of the report now submitted.

The Cabinet received and noted a report by the Chief Finance Officer (a copy of which is appended in the Minute Book) presenting details of the Council’s financial performance for 2024/25.

The Chief Finance Officer reported that at the end of quarter 1, there was a revenue forecast underspend of £444,000 and a capital forecast underspend of £1,218,000. She then went on to report that these underspends were attributed to a number of factors including the Bank of England base rate changes, higher than anticipated green waste subscription income, reduced utility costs at Pathfinder House and Eastfield House and increased rental costs at Pheonix Court. However, some of these were offset by increased costs such as National Insurance. The Cabinet were advised that the Internal Drainage Board levy continued to increase and currently was £50,000 over budget. This had now been included in the Medium-Term Financial Strategy. Other areas of note in respect of overspends relating to the revenue budget included the establishment of a Community Health and Wealth Delivery Fund, the budget associated with the Customer Transformation Director service and business continuity improvements.

Having regard to the capital forecast, Executive Members noted that the rephasing of the budget largely related to underspends at Hinchingbrooke Country Park and ICT projects together with overspends relating to the Community Infrastructure Levy and Salix projects.

The Financial and Treasury Accountant then delivered an overview of the Council’s treasury management position covering the economic position at the end of quarter 1, interest rate forecasts, Annual Investment Strategy, borrowing and compliance with treasury and prudential limits.

Having been advised by the Executive Councillor for Finance and Resources that the Local Government Association had set up a special interest group to tackle the issue with Internal Drainage Boards, the Cabinet’s attention was then drawn to the views of the Overview and Scrutiny Panel (Performance & Growth) which were received and noted. In terms of the former, the Chief Executive advised that the issue was one which had been recognised and that a quarterly meeting had been set up for the District’s Internal Drainage Board Members to come together and share intelligence and that there was a pressing need to plan for capital investment. Members were also advised that a site visit to St Germans Pumping Station at Kings Lynn would also be arranged for Members.

Other matters that were discussed and responded to at the meeting included the reasons for the increase in the number of working age Council Tax Support claimants and the Council’s investment property statistics.

Having expressed their thanks to Officers for presenting the report and in acknowledging the challenges and unavoidable pressures which remained within the Medium-Term Financial Strategy, the Cabinet

RESOLVED

(a)  to consider and comment on the revenue financial performance for the financial year 2024/25 Quarter 1, as detailed in Appendix 1 and summarised in paragraph 3.2 of the report now submitted;

(b)  to consider and comment on the capital financial performance for 2024/25 Quarter 1, as detailed in Appendix 2 and summarised in paragraph 3.3 of the report now submitted; and

(c)  to consider and comment on the prudential and treasury management indicators for 2024/25 Quarter 1, as detailed in Appendix 3 of the report now submitted.