Issue - meetings

Cabinet Portfolio:                 Corporate Services and Finance

Strategic Directorate:           Finance and Customer Services

Consideration was given to the report which set out the financial position as at the end of July 2018 and was based on actual costs and income for the four months April to July, 2018 with forecasts for the remaining eight months of the financial year.

This report was part of a series of financial monitoring reports presented to the Cabinet for 2018/19, setting out the projected year-end revenue budget financial position in light of actual costs and income for the first four months of the financial year and included revenue forecasts, details of capital spending and the projected capital outturn position. 

The current revenue position after four months showed a forecast balanced revenue budget after taking account of the £10m budget contingency approved within the 2018/19 budget. Work continued to identify further savings to improve this position further by the financial year end. 

The report set out by Directorate, the summary forecast revenue outturn position after management actions which have already been quantified and implemented and these were highlighted.

However, to achieve this position a number of mitigating savings actions have been required and further spending reductions had to be identified and implemented across all Council services, in order to offset the impact of a range of cost and demand pressures impacting on the Council’s budgets.

The overspending against budget in Children’s and Young People’s Services Directorate was continuing in the current financial year  as a result of demand for services outstripping budget capacity. The number of children in care continued to increase this financial year.

The increased number of Looked after Children also placed significant pressure on Legal Services within the Finance and Customer Services Directorate. The current forecasted overspend for Legal Services was £1.230m. The Finance and Customer Services Directorate overall was forecasting to outturn within budget after putting into place a range of mitigating actions to compensate for the Legal Service forecast overspend. 

The Adult Care Services Directorate were forecasting an overall overspend of £6.221m. A combination of increased client numbers, the rising cost of care packages, and delays in delivery of savings plans have led to pressure on budgets across all client groups.  A recovery plan has been developed to address previously undelivered savings and project plans are currently being finalised with the expectation that further savings will be identified from this activity.

Regeneration and Environment Directorate was forecasting a balanced budget, although it was facing challenges from a combination of declining business from the school meals service and challenges with delivery of budget savings. 

Discussion ensued on the ability to balance the budget and maintain statutory services and whether there was any flexibility within the Capital Programme once funds had been allocated.  It was pointed out the Council had not reached the stage where it could not fulfil its legal responsibilities and that the Capital Programme was continually monitored for areas of slippage and different financial decision making.

Members also referred to the major pressures facing Regeneration and Environment Services and whether the reviews  ...  view the full minutes text for item 74

Report of the Strategic Director of Finance and Customer Services

Cabinet Member:     Councillor Alam

Commissioner:         Ney (in advisory role)

Recommendations:-

1.    That Cabinet note the forecast General Fund balanced budget position after use of the budget contingency.

2.    That Cabinet note that management actions continue to address areas of overspend, provide enhanced controls over all spend and to identify alternative and additional savings. 

3.    That Cabinet approve the alternative budget savings proposals for Regeneration and Environment, and Finance and Customer Services as referenced in paragraph 3.4.3 and 3.6.7.  

4.    That Cabinet note the updated Capital Programme.

Consideration was given to the report which set out the financial position as at the end of July, 2018 based on actual costs and income for the four months April to July, 2018 with a forecast for the remaining eight months of the financial year.

As at July 2018, the Council was expecting to deliver a balanced General Fund budget by the financial year-end, after taking account of the £10m budget contingency approved within the 2018/19 budget.

However, to achieve this position a number of mitigating savings actions and further spending reductions were required to be identified and implemented across all Council services, in order to offset the impact of a range of cost and demand pressures impacting on the Council’s budgets.

Cabinet Members outlined the current position for the two large areas of overspend and it was noted that for Children’s and Young People’s Services Directorate the overspending against budget was continuing in the current financial year  as a result of demand for services outstripping budget capacity. The number of children in care continued to increase this financial year and had reached 649 at the time of writing this report. The increased number of Looked after Children also placed significant pressure as did the number of young people requiring support from the Leaving Care Service following the increase of provision up to the age of twenty-five.

The targeted initiative “Right Child, Right Care” was profiled to result in a significant reduction in looked after children and a process to ensure that the young people were in the right placements for their needs.  There was also pressure within Early Help and whilst this was being reduced through effective vacancy management there still remained some pressure.  Challenges to potential efficiencies were continuing to take place.

The Adult Care Services Directorate was forecasting an overall overspend of £6.221m. A combination of increased client numbers, the rising cost of care packages, and delays in delivery of savings plans had led to pressure on budgets across all client groups.  A recovery plan had been developed to address previously undelivered savings and project plans were currently being finalised with the expectation that further savings would be identified from this activity.  The main reasons for the delayed delivery of savings were related to the complexity of new cases and the historical assessment practice across all cohorts in terms of over reliance on residential care and poor application of self directed support.

Mitigating actions to deliver a balanced budget position, after use of the budget contingency were outlined as part of the report.

Resolved:-  (1)  That the forecast General Fund balanced budget position after use of the budget contingency be noted.

(2)  That management actions continue to address areas of overspend, provide enhanced controls over all spend and identify alternative and additional savings. 

(3)  That the alternative budget savings proposals for Regeneration and Environment, and Finance and Customer Services as referenced in paragraph 3.4.4 and 3.6.7 be approved.

(4)  That the updated Capital Programme be noted.