Warwickshire County Council’s Cabinet today approved the report outlining the financial position of the organisation at the end of the 2022/23 financial year.
2022/23 was a challenging year financially for the Council, and it has continued to face increases in demand, particularly across its social care and home to school transport services. The year also saw the continued support of the Homes for Ukraine scheme, and further support of communities through the cost-of-living crisis.
The financial outturn position considered by Cabinet reflects these additional pressures resulting in a net revenue deficit of £3.858m, after adjusting for the planned use of reserves. At 1.1% of the total revenue budget it is well within the 2% variance in which the Council operates.
A second report received and approved by Cabinet showed that the Council’s investment portfolio had benefited from higher than usual returns due to increased interest rates and that the additional money earned had helped to partially offset some of the overspend.
Among the main points addressed by Cabinet were:
- noting the delivery of £9.579m (93.5%) savings in 2022/23, a shortfall of only £0.665m against the target and acknowledging the performance in achieving this against the backdrop of the unprecedented increase in costs;
- approving the drawdown of £8.544m from the Council’s reserves and investment funds to support the delivery of the Council Plan through 2023/24;
- having noted capital spend in 2022/23 being the highest in the Council’s history, Cabinet approved the reallocating £2.094m capital spend from 2022/23 into future years; and
- approving the retention of the £1.234m surplus in the Dedicated Schools Grant off-set reserve to safeguard against financial pressures that may be faced from increasing demand in the Council’s SEND services.
As well as noting the financial report and recommendations to mitigate against some of the risks of the forthcoming year, Cabinet also received a report detailing the Council’s treasury management and investment returns. High interest rates saw returns exceed forecasts. The additional income of just over £2.210m has bolster revenue funds that, it was agreed, will be used to and support the forthcoming delivery of the Council Plan.
Cllr Peter Butlin, portfolio holder for finance and property, said:
“Cabinet received two reports detailing very complex financial matters. Both showed a robust performance as we continued to deliver our services within a budget that had been set before anybody could have predicted the turbulence that affected the global economic climate.
“Keeping our deficit to the level it is has demonstrated the resilience and prudence of our planning and strength of our budget management. The Medium-Term Financial Strategy earmarked money towards supporting the delivery of the Council Plan, even in difficult financial times.
“Our financial resilience has enabled the whole Council to manage and mitigate significant pressures and maintain our financial sustainability while delivering Council Plan outcomes.
“The allocation of the additional income from the treasury investments has shown prudent investing as well as good financial management.
“It is a report that clearly demonstrated the Council’s effectiveness in managing its finances, reflecting positive and proactive financial management even in the most trying of times.”