Issue - meetings

Consideration was given to a report presented by Councillor Akhtar, Deputy Leader, which detailed the forecast outturn for the Council based on expenditure and income to 30^th September 2012.

It was currently forecast that the Council would overspend against its Budget by £4.715 million (+2.2%). The main reasons for the forecast overspend related to:-

(i) the continuing service demand and cost pressures in looking after vulnerable children across the Borough;

(ii) 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

(iii) full year effect staff savings not being delivered in 2012/13, where staff have left the Council on voluntary severance or early retirement during the course of the year.

The Select Commission noted that continued, concerted management action would be required over the remaining period of this financial year to ensure that the Council was able to preserve its successful track record in managing both its in-year financial performance and its overall financial resilience in the face of such significant and swift Government funding cuts.

Further information was provided on the spending against budget by each of the Directorates in turn.

The Select Commission particularly noted the progress made on reducing the overspend, assisted by an Invest to Save Bid, in Children and Young People’s Services, despite the continued pressures related to looking after children.

Discussion ensued on the management of spend in line with the Council’s budget position and the following issues were raised and clarified:-

·              The increase in numbers for out of authority residential care.

·              Historical data on children coming into care and whether the numbers have increased due to the economic position and the demand on reduced resources.

·              The need for the budget pressures in Children and Young People’s Services to be monitored on a very frequent basis.

·              Cost avoidance through effective multi-agency management actions and decision-making through enhanced support packages.

·              Potential pressures on winter maintenance if the region should face a period of “bad” weather.

·              Clarification on underspends and overspends.

·              Pressures within Waste Services and the impact of budget reductions in services.

·              Forecasted underspend in Neighbourhoods and Adult Services and whether it was thought this would continue up to the end of the municipal year.

·              Service demands and management actions to deliver the approved budget.

·              Revenue budget monitoring reports should be submitted to each of the delegated powers meetings for Cabinet Members on a formal and frequent basis and this should be minuted accordingly.

·              The need for clear definitions of what was and was not “essential” spend.

·              Further reports to Cabinet on what the projected position would be as of December.

Resolved:- (1) That the report be received and its contents noted.

(2) That the Self Regulation Select Commission notes:-

(a) the progress made to date in delivering the significant financial challenges presented in the Council’s revenue budget;  and

(b) the action to bring projected spending into line with Budget limits, including a freeze  ...  view the full minutes text for item 40

-        Strategic Director of Resources to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Resources which stated that in setting the 2012/13 Revenue Budget, as a result of Coalition Government funding cuts, the Council had had to deliver savings in excess of £40M up to March, 2012 and in 2012/13 having to manage further savings proposals of £20.4M.  It did this by ensuring the budget process focused on the customers the Council served, the communities and businesses of Rotherham. Consequently, as a first course of action, management and administration and back office costs were streamlined.

The report provided details of progress on the delivery of the Revenue Budget for 2012/13 based on performance for the first six months of the 2012/13 financial year.  It was currently forecast that the Council would overspend against its Budget by £4.715M.  The main reasons for the forecast overspend were:-

·              The continuing service demand and cost pressures in looking after vulnerable children across the Borough

·              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.

·              Full year effect of staff savings not being delivered in 2012/13 where staff had left the Council on voluntary severance or early retirement during the course of the year. 

Continued management action would be required over the remaining periods of the financial year to ensure that the Council was able to preserve its successful track record in managing both its in-year financial performance and its overall financial resilience in the face of such significant and swift Government funding cuts.

Resolved:- (1)  That the progress made to date in delivering the significant financial challenges presented in the Council’s Revenue Budget be noted.

(2)  That action to bring projected spend in line with Budget limits, including a freeze on all but essential spend, be supported.

(3)  That further progress reports be submitted during the remainder of the financial year.