Agenda item

To receive a full overview of both the service delivery and performance & budget position across the Authority as at 31 July 2023.

Cabinet was provided an overview of both the service delivery performance and budget position across the Authority as at 31 July 2023.

The performance set out the key areas of service delivery, including the impacts in budget terms, with the budget forecast outturn position to 31 March 2024 for both revenue and capital.

The report detailed the current position in relation to schools finance, the Authority’s Investment Plan, developers’ contributions and treasury management. In addition, it provided details of additional revenue and capital grants received up until 31 July 2023 for Cabinets approval.

In terms of performance, service delivery overall across the Authority remained strong. The Authority continued to manage high levels of demand in several areas including Education, Health and Care Needs Plans, children in care, children in need, home care provision, residential and nursing care placements all of which had financial implications.

Key areas of strength were the delivery of the Our North Tyneside Plan 2021-2025 priorities such as the affordable homes programme and carbon net zero. The Ambition for North Tyneside Programme was progressing well with regeneration projects across the four areas of the borough.

Capital investment continued to deliver planned improvement works helping to maintain council homes at the decent homes standard. Council Tax and Business Rates collection also remained on track.

Since its last report, the number of children in care had increased from 362 in May to 376 in July. The Authority had an additional 64 children in need and an additional 46 children in care, compared to budgeted levels. The result of the additional children in care compared to May combined with the current mix of placements had driven a £1.093m worsening of the Children’s position, to a total forecasted pressure of £6.474m. All other services areas had seen their financial position improve that facilitated to mitigate the increase in Children’s resulting in an overall improvement of £0.389m to the position compared to May 2023.

The budget’s overall projection for 2023/24 was that the General Fund would outturn with a pressure of £11.311m and the Housing Revenue Account had a forecast underspend of £0.053m.

The report also set out the programme in place to manage and mitigate the 2023/24 budget pressures and form part of the 2024-2028 Medium Term Financial Plan.

Resolved that Cabinet

i.             Noted the update provided on the Performance of the Authority including updated data on the key pressures facing the Authority and progress against the Our North Tyneside Plan 2021-2025,

ii.            noted the forecast budget monitoring position for the General Fund, Housing Revenue Account (HRA), schools finance and Treasury Management together with the service delivery performance position across the Authority as at 31 July 2023 (sections 1.5.1, 1.5.2, 1.5.3 and 1.5.5 of the report),

iii.          noted the Authority’s Investment Plan spend of £19.264m to 31 July 2023 and the proposed financing of the Plan to the end of the year (section 1.5.4 of the report),

iv.          approved variations of £5.579m and reprogramming of £8.489m for 2023/24 within the 2023-2028 Investment Plan (section 1.5.4 of the report) and note the current position with Developers’ Contributions (section 1.5.6),

v.           approved the receipt of £1.066m new revenue grants (as outlined in section 1.5.7 of the report), and £0.775m of new capital grants to be applied in 2023/24 (as outlined in section 1.5.8 of the report), and

vi.          approved the budget setting timetable for the 2024/28 Medium Term Financial Plan (as outlined in Appendix 2 appended to the report).

(Reason for decision: It is important that Cabinet continues to monitor performance against the Budget, especially given the current level of financial pressures faced by the public sector).