Agenda item

With reference to article 8 of the minute of the previous meeting of 5 November 2024, the Committee had before it a report by the Director of Corporate Services, which provided the financial position of the Council as at Quarter 3 (31 December 2024) and the full year forecast position for the financial year 2024/25, including:-

·       General Fund and Housing Revenue Account (HRA) and capital accounts; and associated Balance Sheet; and

·       Common Good revenue account and Balance Sheet.

The report recommended:-

that the Committee –

(a)      note the cash position that has been achieved for the General Fund and HRA to the end of Quarter 3 as detailed in Appendix 1;

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

(c)      note that the General Fund full year forecast position remains on track to achieve a full year outturn of ‘on budget’ although there are a range of financial risks that exist for the financial year, including the financial position of the Aberdeen City Integration Joint Board (IJB). Continuing action and controls, as outlined in Appendix 2 will remain in place for the remainder of the financial year;

(d)      approve the use of the ‘Resilience’ earmarked reserve to fund the Council’s £4m share of the deficit that is forecast for the IJB, after use of the available IJB reserves, at the end of the financial year;

(e)      note that the Council maintains financial resilience with the resources available on the Council Balance Sheet, the General Fund Reserves in particular. As at 31 March 2024 the uncommitted value of those reserves was £12m, the minimum that the Council Reserves Statement recommends and as approved by the Council;

(f)       note that the HRA full year forecast position, as detailed in Appendix 2, is forecasting a deficit of £4.6m at this time and continues to face challenging cost pressures as outlined in Appendix 2 and the HRA Budget Report 2024/25; and

(g)      note that the forecast for General Fund Capital budget has been updated to include approved in-year virements. Housing Capital expenditure is currently forecast to be on budget for 2024/25.

The Convener, seconded by Councillor Greig, moved:-

that the Committee approve the recommendations contained within the report.

Councillor Malik, seconded by Councillor Watson, moved as an amendment:-

that the Committee –

(1)    note recommendations 2.1, 2.2, 2.3, 2.5, 2.6 and 2.7 of the report;

(2)    agree it is unacceptable for the Council to find itself in a position where the IJB has overspent, and the Council will be obligated to bail them out. Notes the IJB forecast position reported in the Quarter 1 Financial Performance Report, which was presented to the Finance & Resources Committee in August 2024.  The report set the expectation that IJB will be managed, and Council will not be called on for additional resources at year end; 

(3)    agree serious questions must be asked regarding Councillor Cooke’s competence to remain as Convener of the IJB, given the disaster of his financial management of the IJB; and

(4)    due to the assurances received within the Quarter 2 report and with so little weeks left in the financial year, the Council has been left exposed to a deficit not of its own making. Agree that the IJB gets its finances in order and calls upon the Chief Officer - Finance to bring forward a note in the Quarter 4 report highlighting why the Council did not pick up this deficit until it was too late.

On a division, there voted:- for the motion (5) – the Convener and Councillors Allard, Cooke, Greig and Radley; for the amendment (4) – Councillors Brooks, Farquhar, Malik and Watson.

The Committee resolved:-

to adopt the motion.