Issue - items at meetings - Revenue Budget Monitoring 2014/15 (report not ready)

Further to Minute No. 24 of the meeting of the Cabinet held on 6^th August, 2014, consideration was given to a report presented by Stuart Booth, Director of Financial Services, which provided details of progress on the delivery of the Revenue Budget for 2014/15 based on performance for the first three months of the financial year. It was currently forecast that the Council would overspend against its Budget by £6.752M (+3.2%).

When the 2014/15 Budget was set, there had been recognition that there was the potential for this to be a challenging year with the need to manage service demands very closely and that the level of balances reflected this potential increase in financial risk in the system.

The main reasons for the forecast overspend were:-

· The continuing service demand and cost pressures for safeguarding vulnerable children across the Borough.

· Cost pressures arising from some schools converting to academies.

· Income pressures within Environment and Development Services and ICT.

· Demand pressures for Direct Payments within Older People and Physical and Sensory Disability clients.

· Additional, property costs from the continued rationalisation of the Council’s buildings as part of the efficiency drive to reduce operational costs.

· Some savings targets were currently pending delivery in full in 2014/15.

Cabinet had agreed the implementation of the opportunity for staff to apply for Voluntary Severance/Voluntary Early Retirement and where this could be supported these savings would help to reduce the in-year financial pressure and also contribute to closing the budget funding gap for 2015/16 and beyond.

As the current forecast outturn was significantly different to budget, Cabinet was asked to support the implementation of the same successful three stage strategy (Section 7.4 of this report) used in 2013/14 to bring spend in line with budget by the end of 2014/15.

The above actions would mitigate the current level of forecast overspend and assist the Council to deliver a balanced outturn and preserve its successful track record in managing both its in year financial performance and its overall financial resilience.

The Select Commission was advised of the forecasted over and underspends for each which were set out in detail as part of the report.

A discussion and answer session ensued and the following issues were raised and subsequently clarified:-

· What, if any, financial measures had the Council put in place following publication of the Jay report? Provision needed to be made in relation to implementing the recommendations, providing support for victims and potential claims: -

o The Local Authority was preparing a response to the potential challenges and the Audit Committee would also have a role in this to ensure good financial management;

o The Leader had identified £120,000 to provide therapeutic services to victims of child sexual exploitation. This had been funded within existing resources and did not represent a budget pressure;

o The Jay report emphasised the multi-agency nature of the workforce. It followed that there would be a multi-agency financial response;

o The Self-Regulation Select Committee welcomed the Chief Executive providing further information ... view the full minutes text for item 25

- Director of Finance to report.

Councillor Wyatt, Cabinet Member for Finance, introduced a report by the Director of Finance which provided details of progress on the delivery of the Revenue Budget for 2014/15 based on performance for the first three months of the financial year. It was currently forecast that the Council would overspend against its Budget by £6.752m (+3.2%).

Members would recall that when the 2014/15 Budget was set there was recognition that there was the potential for this to be a challenging year with the need to manage service demands very closely and that the level of balances reflected this potential increase in financial risk in the system.