Decision details

(i)       note the cash position that has been achieved for the General Fund and HRA to the end of Quarter 2 as detailed in Appendix 1;

(ii)      note the Common Good financial performance to the end of Quarter 2 as detailed in Appendix 3;

(iii)      note that the General Fund full year forecast position remains very uncertain at this time and subject to the continued implementation of actions as per Appendix 2, and no further financial shocks, then a full year outturn position of ‘on budget’ is anticipated;

(iv)     note that financial resilience to mitigate the risks of overspending is underpinned by the resources available on the Council Balance Sheet and General Fund Reserves in particular. As at 31 March 2023 the uncommitted value of those reserves was £12m, the minimum that the Council Reserves Statement recommends and as approved by the Council;

(v)      note that the HRA full year forecast position, as detailed in Appendix 2, is on target to achieve the approved budget, but faces challenging cost pressures;

(vi)     note that the Council relies on the Integration Joint Board (IJB) achieving a balanced budget, and that the IJB retains reserves to mitigate unplanned additional costs arising during the year;

(vii)     note that the forecast for General Fund Capital budget is that it will be lower than its revised budget and Housing Capital expenditure while closer to budget is also expected to be lower than budgeted in 2023/24 as described in Appendix 2;

(viii)    note that earlier this month Cosla agreed to implement the pay award for nonteaching staff and this will be paid to staff in December. This will bring greater certainty to our financial forecasts as assumptions made and sums set aside for the pay award will now be able to be finalised, including the additional contribution the Council will have to make. The pay offer also relies on additional funding from Scottish Government, and all of these actuals and revised budgets will be included in the Quarter 3 forecasts, due to be reported to the Committee in January 2024; and

(ix)     to note that Aberdeen Football Club (AFC) are playing in the Viaplay Scottish League Cup final on 17 December 2023.  In the event that the team wins, the Committee agrees that there will be a celebration in the city, including a parade and civic event, and that, in conjunction with AFC, preparations should be made for this to take place; Instruct the Chief Officer - City Growth, following consultation with the Chief Officer - Finance, to make the necessary arrangements and to agree that the Council's share of the cost is funded from the Common Good; and Instruct the Chief Officer - Finance to include in the Q3 financial performance report details of the costs incurred.