The purpose of the report was to set out the forecast revenue and capital budget positions as at period 9 for 2023/24 and to give an overall financial update.

The commentary of the report does not attempt to cover all budgetary changes but draws attention to the key factors affecting net expenditure differences.

The General Fund is forecasting a balanced budget, this means the income generated covers the council’s expenditure. The result of a balanced budget is the general fund working balance will remain unchanged.

The Housing Revenue Account (HRA) is currently forecasting a surplus position of £756k. The main cause of this underspend is due to utility bills falling. We are predicting an underspend of £632k for premises related costs, £423k specifically for utility bills. If this £756k underspend materialises it will increase the HRA’s working balance or stored in to reserves to pay for future developments. The director of Housing and CLT are exploring ways to prioritise some urgent works in 2023/24 to reduce this underspend by 31st March 2024.

The overall capital programme is forecast to underspend by £40.7mil. £20mil of this is due to the delays around the regeneration fund. The total underspend will be considered as slippage into next year's programme.

The current financial backdrop poses further financial risks to the Council’s budget. It should be noted that the Local Government Association has issued a statement “The lack of funding for local services in the Autumn Statement has left councils facing a growing financial crisis and 1 in 5 council leaders & CEO are very or fairly likely to issue a section 114 in this or next financial year”. This statement can be found on LGA website: www.local.gov.uk.

For Brentwood, there are further financial risks to pay inflation forecasts as well as cost pressures from the current high rates of inflation. The high inflation rates, increasing bank rates and national living wage pressure will have further impact onto the ongoing budgets.

Whilst the Council is not anticipating the need to reduce any services, the financial position will have to be monitored over the year and will make the MTFS for 2024/25 and beyond even more of a challenge.

Cllr Barrett thanked the work of the officers.

The motion was MOVED by Cllr Kendall and SECONDED by Cllr Laplain. A vote was taken by a show of hands and was RESOLVED UNANIMOUSLY:

R1: The recommendation is for the report to be noted.

REASONS FOR RECOMMENDATIONS

Financial monitoring of the budget throughout the year complies with the duties under the Local Government Act 2003, the Housing Act 1985, the Local Government and Housing Act 1989 and the Local Government Finance Act 1992 and subsequent legislation.