Budget Pressures 2022-23 and Medium-Term Financial Plan
This report is to follow.
Additional documents:
Decision:
(1) To note the emerging position against the 2022/23 budget and the impact on the Council’s finances in future years.
(2) To approve the high-level action plan set out in the report and to identify any further measures that should be taken.
(3) To instruct officers to undertake a comprehensive mid-year review of the 2022/23 budget and to present this, and a revised Medium Term Financial Plan, to Council at its meeting on 6 December 2022.
Reason(s):
To ensure councillors are aware of the emerging budget pressures.
Other options considered and rejected by the Executive:
None
Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:
None.
Minutes:
The Executive considered a high-level summary report that set out the emerging financial position against the approved 2022/23 budget and highlighted pressures on the Medium-Term Financial Plan (MTFP). Several factors had affected the Council’s budget since it was approved in February 2022, most of which had an adverse impact. The financial outturn in 2021/22 on the general fund and HRA was positive overall, however, there were some concerning cost pressures and income shortfalls that were likely to continue into future years. This, coupled with the significant inflationary pressure experienced since April, presented a very challenging position for the Council.
The Lead Councillor for Resources introduced the report which was described as a ‘work in progress’. Officers were projecting a net overspend on the general fund revenue account of £3.1 million. A significant proportion related to inflationary and cost of living pressures, most of which was utilities costs. Reports that the National Insurance increases had been withdrawn by Government was welcomed, although detail about any specific support for councils was still awaited.
The report also noted that officers were investigating a potential discrepancy in the staff cost budget which appeared to have originated during the transition period of phase 2 of the Future Guildford programme. This could materially impact both the general fund and the HRA in 2022/23 and future years.
A more detailed financial monitoring report would be considered by the Corporate Governance and Standards Committee on 29 September and comments arising would help inform the mid-year review of the MTFP. A similar exercise was required in 2021/22 and was successful as the overall position at year end was £138,000 under budget.
Consequently, the Executive
RESOLVED:
(1) To note the emerging position against the 2022/23 budget and the impact on the Council’s finances in future years.
(2) To approve the high-level action plan set out in the report and to identify any further measures that should be taken.
(3) To instruct officers to undertake a comprehensive mid-year review of the 2022/23 budget and to present this, and a revised Medium Term Financial Plan, to Council at its meeting on 6 December 2022.
Reason(s):
To ensure councillors are aware of the emerging budget pressures.