Issue - meetings

The report set out the overview of the financial Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2022/23 as at quarter 1.

This was the first budget monitoring report for the new financial year and came at a time when the Council was experiencing significant financial pressures due to the current economic situation and the high levels of inflation. 

The forecast Revenue outturn position for 2022/23 was an adverse variance of £3.8m, 1% of Portfolio budgets.  Appendix 1 provided detailed information on the revenue forecast outturn by Portfolio.  £19.2m of savings were incorporated into the approved 2022-23 Revenue budgets.

At this early point in the year, Portfolios were forecasting that the Capital Programme would be managed to the agreed budget level (with no forecast variance). However, the current exceptional level of inflation and the risk that shortages of building materials could further drive up prices and cause delays and slippage in the programme would have a significant impact on what could be delivered within the approved budget for the year.

RESOLVED –

(1)               That the report, including the risks and opportunities contained within it, be NOTED. 

(2)               That the drawdown of £1.5m from the “Mitigating Future Financial Risks” Reserve be APPROVED, to fund the unconsolidated element of the 2022/23 pay award as approved by the Senior Appointments & Pay Committee (SAPC). 
(Note: This can be funded from reserves as it is a one-off element and will not be incorporated into the base budget going forwards.)

The report set out the overview of the financial Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2022/23 as at quarter 1.

This was the first budget monitoring report for the new financial year and came at a time when the Council was experiencing significant financial pressures due to the current economic situation and the high levels of inflation. 

The forecast Revenue outturn position for 2022/23 was an adverse variance of £3.8m, 1% of Portfolio budgets.  Appendix 1 provided detailed information on the revenue forecast outturn by Portfolio.  £19.2m of savings were incorporated into the approved 2022-23 Revenue budgets.

At this early point in the year, Portfolios were forecasting that the Capital Programme would be managed to the agreed budget level (with no forecast variance). However, the current exceptional level of inflation and the risk that shortages of building materials could further drive up prices and cause delays and slippage in the programme would have a significant impact on what could be delivered within the approved budget for the year. It has been agreed that a moratorium would be put in place on uncommitted capital schemes (excluding rolling maintenance programmes) whilst an urgent review of the impact of inflation was carried out and the capital programme was re-prioritised via a Member and Officer Task and Finish group. Urgent sign off measures would be put in place to ensure that key schemes could commence before the review was complete.

The Cabinet discussed the issues around the current exceptional level of inflation.  David Skinner, the newly appointed Section 151 Officer, explained that the Council’s Medium Term Financial Plan (MTFP) was being updated in terms of revised inflation assumptions. The MTFP, as it develops over the next few months, would need to respond to any rise in inflation and suitable mitigations would need to be considered as part of the planning process.

RESOLVED –

(1)               That the report, including the risks and opportunities contained within it, be NOTED. 

(2)               That the drawdown of £1.5m from the “Mitigating Future Financial Risks” Reserve be APPROVED, to fund the unconsolidated element of the 2022/23 pay award as approved by the Senior Appointments & Pay Committee (SAPC). 
(Note: This can be funded from reserves as it is a one-off element and will not be incorporated into the base budget going forwards.)