Decision details

The Director of Resources and Deputy Chief Executive submitted a report seeking approval of a revised revenue budget for 2023/24.

Members were reminded that the original estimate for the current financial year was set in March 2023. At this time of year, the Council revised the estimates for the current financial year to predict the likely outturn.

The report noted that the:

·      Council had forecast earlier in the year that it was facing record levels of inflation at 10.1% in the 12 months to September 2022. In the 12 months to October 2023, the Consumer Price Index (CPI) had fallen to 4.6%, therefore, the revised estimates took into account the changes in inflation so far and made assumptions up to the end of March 2024.

·      The Council had been facing significantly higher utility costs for gas, electricity, and fuel, however, a decrease to the estimated costs of gas (-£75k) and electricity (-£26k), mainly due to a reduction in unit rates, had resulted in the movement from the original estimate totalling -£100k.

·      The Pay Award for 2023/24 had now been settled and, overall, the cost of the pay award was 6.5% which was around £170k above the 5% which had been allowed for.

·      The overall difference between the Revised and Original Estimate was a decrease in net expenditure of £166,810 or a decrease in net expenditure of £92,410 after allowing for transfers to and from earmarked reserves.

The report included detailed information on the variances.

RESOLVED THAT COMMITTEE:

Agree the revenue revised estimate for 2023/24.