Issue - meetings

Report of the Strategic Director of Finance and Customer Services

Cabinet Member:     Councillor Alam

Commissioner:         Myers (in advisory role)

Recommendations:

That Cabinet:

·           Notes the current 2016/17 forecast overspend of £343k after management actions, use of in-year capital receipts, capitalisation of highways spend and the allocation of additional in year budget. (Paragraph 3.1)

·           Notes and endorses the specific actions being implemented to challenge planned spend between now and the end of March to reduce the forecast overspend and minimise the call on reserves. (Paragraph 2.7)

·           Recommend any additional actions which could be implemented to help manage down the current forecast overspend.

·           Notes that a detailed Dedicated Schools Grant (DSG) High Needs Sufficiency Strategy and Financial Plan to address the remaining deficit and future level of service provision will now be discussed and consulted upon at the 8^th March 2017 Schools Forum meeting. (Paragraph 3.14)

Consideration was given to the report which set out the financial position for the Revenue Budget at the end of December, 2016 and was based on actual costs and income for the first nine months of the financial year and forecasted costs and income for the remaining three months of 2016/17.

The revenue position, before adjusting for the additional budget allocation approved by Council on 7^th December, 2016 showed a forecast overspend of £10.391m after currently identified management actions. The additional in-year budget approval had reduced the forecast overspend down to £2.543m. The forecast overspend had increased by £768k since the November report.

It was currently anticipated that around £1.0m of the forecast overspend could be funded from in-year capital receipts and a further £1.2m of spend in relation to Highways could be capitalised. Therefore, based on the current forecast, this would reduce the potential call on reserves to £343k.

The additional budget approval had to be funded and the extent to which in-year revenue spend across the whole Council could not be reduced, would inevitably impact the Council’s reserves.

The December Council report approved additional in-year funding to address pressures, predominantly in Children’s Services (£7.848m) and £608k for new investments for Adults, Children’s and Corporate Services which would enable the delivery of significant savings in future years. The report also approved additional funding for 2017/18 of £11.005m which had been built into the Medium Term Financial Strategy and specific budget plans for next year.    

Appendix 1 to this report showed the detailed reasons for forecast revenue under and over spends by Directorate after management actions which have/were already being implemented.

Resolved:-

Revenue

(1)  That the current 2016/17 forecast overspend of £343k after management actions, use of in-year capital receipts, capitalisation of highways spend and the allocation of additional in year budget. (Paragraph 3.1) be noted.

(2)  That the specific actions being implemented to challenge planned spend between now and the end of March to reduce the forecast overspend and minimise the call on reserves. (Paragraph 2.7) be noted and endorsed.

(3)  That any additional actions be recommended which could be implemented to help manage down the current forecast overspend.

(4)  That a detailed Dedicated Schools Grant (DSG) High Needs Sufficiency Strategy and Financial Plan to address the remaining deficit and future level of service provision be noted, which would now be discussed and consulted upon at the 10^th March, 2017 Schools Forum meeting. (Paragraph 3.14).