Report to:			Audit and Governance Committee
Date:			19 March 2024
Title:			Budget Book 2024/25
Portfolio Area:			Resources – Cllr C Edmonds
Wards Affected:			ALL
Urgent Decision:		N		Approval and clearance obtained:			Y
Author:	Pauline Henstock Carmen Bottrell				Role:	Head of Finance Practice Senior Accountant
Contact:	Email: pauline.henstock@swdevon.gov.uk Email: carmen.bottrell@swdevon.gov.uk

Recommendations:  

That the Audit and Governance Committee:

1. Notes the content of the Budget Book for 2024/25.

1. Executive summary

Following approval of the 2024/25 Budget at Council on 20 February attached at Appendix A is a copy of the detailed Budget Book for 2024/25. This sets out the Council’s Revenue Budget for the year into the four Directorates of Customer Service and Delivery, Place and Enterprise, Strategy & Governance and Strategic Finance.

2. Background

The Budget Book reflects the Revenue Budget for 2024/25 which was approved by Council on 20 February 2024.

The Budget Book compares the detailed Budget for 2023/24 against the Budget for 2024/25. Cost pressures and savings which were set out in Appendix A of the Medium Term Financial Strategy (MTFS) and agreed as part of the 2024/25 budget process are shown in the highlighted ‘24/25 MTFS Adjustments’ column, with a note underneath. A copy of the relevant MTFS appendix is shown in Appendix B of this report for information. This confirms that budget pressures amounting to £1,605,500 and savings and income generation of £705,000 were built into the 2024/25 base budget resulting in a net increase to the budget of £900,500. These movements in the base budget have been allocated to the relevant detailed lines in the 2024/25 budget book. For example, the income target for Treasury Management investment income has been increased by £400,000 for 2024/25, and this is shown in Cost Centre W6050 Interest and Investment Income.

The Budget Book shows any ’virements’ within 2023/24. A virement is where a budget is moved from one budget holder (and cost centre) to another, to better reflect where budget responsibility should be held. Virements always net to zero.

In addition various presentational changes have been made to the 2024/25 budget shown in the ‘other adjustments’ column in the Budget Book. This aligns budgets to reflect current income and expenditure arrangements. These adjustments net to zero overall, as they are purely presentational.

Finally, capital charges have been realigned in 2024/25 to reflect the current position. This is a notional charge which is offset by the reversal of depreciation and therefore has no impact on the overall budget position.

33. Implications

Implications	Relevant to proposals Y/N	Details and proposed measures to address
Legal/Governance	Y	The Council is legally required to set a Balanced Budget each financial year.
Financial Implications to include reference to value for money	Y	There are no direct financial implications as a result of this report. The Budget Book reflects the Revenue Budget for 2024/25 which was approved by Council on 20 February 2024. The annual budget setting process will ensure the Council has arrangements in place to secure economy, efficiency and effectiveness in its use of resources. On 5th December 2023, the Audit and Governance Committee considered an interim Auditor’s Annual Report from the Council’s external auditors, Grant Thornton. This gave commentary on the Council’s arrangements to secure economy, efficiency and effectiveness in its use of resources. The report stated that ‘The Council has demonstrated an appropriate understanding of its role in securing economy, efficiency and effectiveness in its use of resources. Our work has not identified any significant weaknesses in arrangements.’
Risk	Y	The Council’s budget book sets out the income and expenditure budgeted for each service area. A prudent level of reserves is held by the Council to mitigate against financial risk.
Supporting Council Plan	Y	The budget book report supports all of the themes within the Council’s Plan 2024-2028 and includes the detailed revenue budgets for the year 1 (2024/25) delivery plan.
Climate Change – Carbon / Biodiversity Impact	N	None directly arising from this report.
Comprehensive Impact Assessment Implications
Equality and Diversity	N	N/a
Safeguarding	N	N/a
Community Safety, Crime and Disorder	N	N/a
Health, Safety and Wellbeing	N	N/a
Other implications	N	None

Appendices

Appendix A – Budget Book 2024/25

Appendix B – Budget Pressures and Savings 2024/25

Approval and clearance of report

Process checklist	Completed
Portfolio Holder briefed	Yes
SLT Rep briefed	Yes
Relevant  Exec Director sign off (draft)	Yes
Data protection issues considered	Yes
If exempt information, public (part 1) report also drafted. (Committee/Scrutiny)	N/a