Issue - meetings

-           Strategic Director of Resources and Transformation to report.

Further to Minute No. 131 of the meeting of the Cabinet held on 4^th February, 2015, consideration was given to a report presented by Anne Ellis, Finance Manager, which provided details of progress on the delivery of the Revenue Budget for 2014/15 based on performance for the first nine months of this financial year.  It was currently forecast that the Council would overspend against its Budget by £2.103m (+1.0%); an improvement of £873k since the last report to Cabinet in December (October monitoring report). 

The current forecast outturn included the costs of implementing recommendations from the Jay report and the Ofsted Inspection to the extent known.  It was an evolving picture with the proposed restructure of Children’s Services currently out to consultation.  If recruitment to the final structure commenced during February or March, there were likely to be additional costs incurred which were not currently reflected within the report.  Costs which would be borne by the Council in respect of the Corporate Governance Inspection were still unknown; the Chief Executive had written to the Government asking for an estimation of the Inspection costs and a response awaited.

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

·                Continuing Health Care income pressures and demand pressures for Direct Payments within Older People and Physical and Sensory Disability clients

·                Additional costs of responding to the Jay report and Ofsted recommendations

The forecast outturn figure included in the report reflected staff cost savings for the staff who had left the Council during 2014/15 through Voluntary Early Retirement or Voluntary Severance together with the savings accrued through the moratorium on non-essential spend implemented on 2nd September, 2014, which would continue until the end of March, 2015.   

Continued close management of spend remained essential if the Council was to deliver a balanced outturn and preserve its successful track record in managing both its in year financial performance and its overall financial resilience.

It was hoped that the Council could deliver a balanced budget with the overspends being aligned.  The Council’s revenue reserves would have to fund any additional costs.

Resolved:-  That the current forecast outturn and the continuing financial challenge for the Council to deliver a balanced revenue budget for 2014/15 be noted.

-           Strategic Director of Resources and Transformation to report.

Councillor Hoddinott, Deputy Leader, introduced a report by the Strategic Director of Resources and Transformation which provided details of progress on the delivery of the Revenue Budget for 2014/15 based on performance for the first nine months of this financial year.  It was currently forecast that the Council would overspend against its Budget by £2.103m (+1.0%); an improvement of £873k since the last report to Cabinet in December (October monitoring report). 

The current forecast outturn excluded the costs of implementing recommendations from the Jay report and the Ofsted Inspection, and the costs which would be borne by the Council in respect of the Corporate Governance Inspection.

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.

·                Continuing Health Care income pressures and demand pressures for Direct Payments within Older People and Physical and Sensory Disability clients.

·                Additional costs of responding to the Jay report and Ofsted recommendations.

Resolved:-  That the current forecast outturn and the continuing financial challenge for the Council to deliver a balanced revenue budget for 2014/15 be noted.