Issue - meetings

Consideration was given to the report presented by Stuart Booth, Director of Central Finance, which referred to the setting the 2011/12 Revenue Budget and how the Council had to manage an unprecedented level of savings (£30.3m) resulting from the withdrawal of Central Government funding and grant allocations

In meeting this significant financial challenge the Council, from the outset, indicated the Budget process must focus on the customers it served, the communities and businesses of Rotherham. This meant, as a first course of action, streamlining management and administration and reducing as far as possible back office costs. These were highlighted as a priority by the public as part of the ‘Money Matters’ budget consultation.  

The report, therefore, provided details of progress on the delivery of the Revenue Budget for 2011/12 based on performance for the first six months of the 2011/12 financial year and flagged up a potential overspend of £6.923m (3.20%). The main reasons for the variance were:-

·              The continuing service demand and cost pressures in looking after vulnerable children across the Borough, which are also being felt both nationally and locally by a large number of councils;

·              Additional, one-off property costs relating to the continued rationalisation of the Council’s asset portfolio as part of the efficiency drive to reduce operational costs; and

·              The extended timescale for realising the full forecast management and business support savings of £1.45m.

However, the report identified actions being taken by the Strategic Leadership Team to drive the Budget position towards a balanced position by the end of the financial year.

Discussion ensued and the following issues were raised and clarified:-

-                 The level of unprecedented savings and the difficulties facing the Council.

-                 Financial reporting and the links to performance management.

-                 The overall position and summary of the key areas and the areas making up the central services levy.

-                 Realistic savings on shared services.

-                 RBT revenue savings, the costs attached and the impact on the budget.

-                 Impact of the overspends on the Council’s priorities identified in the Medium Term Financial Strategy.

-                 Realisation of revenue targets and the actions/activities involved.

-                 Directorate budget monitoring and the actions being taken to balance budgets.

-                 Reasons for the overspends.

-                 Self Regulation Select Commission Sub-Group’s role in looking at overspends, particularly around Looked After Children.

Resolved:-  (1)  That the contents of the report be noted.

(2)  That the progress made to date in delivering the significant financial challenges presented in the Council’s Revenue Budget be noted.

(3)  That any further actions to be taken by Directorates so as to minimise the impact on the Council’s medium term financial position be determined.

-        Strategic Director of Finance to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Finance, which provided details of how in setting the 2011/12 Revenue Budget the Council had to manage an unprecedented level of savings (£30.3m) resulting from the withdrawal of Central Government funding and grant allocations.  In meeting this significant financial challenge the Council, from the outset, said that the Budget process must focus on the customers it served, the communities and businesses of Rotherham. This meant, as a first course of action, streamlining management and administration and reducing as far as possible back office costs. These were highlighted as a priority by the public in the ‘Money Matters’ budget consultation. 

This report, therefore, provided details of progress on the delivery of the Revenue Budget for 2011/12 based on performance for the first six months of the 2011/12 financial year and flagged up a potential overspend of £6.923m (3.20%). The main reasons for the variance were:-

·              The continuing service demand and cost pressures in looking after vulnerable children across the Borough, which were also being felt both nationally and locally by a large number of Councils.

·              Additional, one-off property costs relating to the continued rationalisation of the Council’s asset portfolio as part of the efficiency drive to reduce operational costs.

·              The extended timescale for realising the full forecast management and business support savings of £1.45m.

However, the report identified actions being taken by the Strategic Leadership Team to drive the Budget position towards a balanced position by the end of the financial year.

Management actions have been put in place to address some of the issues identified to date and work was being undertaken to identify further actions. As these took effect they would be monitored to enable the impact of the actions to be assessed. Careful scrutiny of expenditure and income across all services and close budget monitoring, therefore, remained essential. 

Resolved:-  (1)  That the contents of this report be noted.

(2)  That the progress made to date in delivering the significant financial challenges presented in the Council’s Revenue Budget be noted.

(3)  That any further actions be taken by Directorates so as to minimise the impact on the Council’s medium term financial position.