Agenda item

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 on all but essential spending.

(3) That further revenue budget monitoring progress reports be submitted to meetings of the Cabinet Members with delegated powers on a monthly basis to address any overspends and also to this Select Commission during the remainder of this financial year.