Agenda item

Further to Minute No. 138 of the meeting of the Cabinet held on 18^th December, 2013, consideration was given to a report presented by Pete Hudson, Chief Finance Manager, concerning the funding reductions implemented by the coalition Government since 2011 which have required the Council to make savings of over £70 million, including £20.2 million of savings which the Council must deliver during the 2013/14 financial year in order to achieve a balanced outturn budget.

The submitted report provided details of progress on the delivery of the Revenue Budget for 2013/14, based on performance for the first seven months of the financial year. It was currently forecast that the Council would overspend against its budget by £4.625 million (+2.1%).  The main reasons for the forecast overspending were:-

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

·                Income pressures within Environment and Development Services.

·                Continuing Health Care income pressures within Adult and Children’s Services.

·                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.

·                Some savings targets were currently pending delivery in full during 2013/14.

The moratorium on all except ‘essential’ spend had been in place since 16^th October, 2013, and was starting to see a slow down in spend as had been experienced in previous years when a spending moratorium had been imposed.  Services were also exploring opportunities to maximise the flexible use of grant funding whilst ensuring grant conditions were complied with.  Further, the recent opening of the offer for staff to apply for Voluntary Early Retirement/Voluntary Severance (VER/VS) would also generate savings which would contribute to both reducing the in-year pressure and potentially contribute to closing the 2014/15 budget gap.

Monthly budget monitoring reports would not be submitted to Cabinet to enable close monitoring of progress towards delivering a balanced outturn.

It was also noted that meetings had taken place with the Clinical Commissioning Group regarding concerns over access to and timely payment of Continuing Health Care income for clients with Continuing Health Care needs.  An action plan had been developed and updates submitted to a series of future meetings between early December and the end of the financial year.

Discussion ensued and the following issues were raised and subsequently clarified:-

·                Current position and up-to-date information on the budget.

·                Moratorium of spend and whether this included staff recruitment and sick leave cover.

·                Suitability of candidates for the Director of Safeguarding position.

·                Reasons for increased agency staff usage in Children and Young People’s Services and Environment and Development Services and the good practice exhibited in other Directorates of the Council.

·                Procurement processes for agency staff ensuring value for money.

·                Spotlight review of agency and consultancy usage to be added to the Work Programme for 2014/15.

·                Council tax collection rates and current collection rates for business rates.

·                Overspend on independent sector residential and nursing care and the delivery of expected savings.

Resolved:-  (1) That the report be received and its contents noted.

(2)  That the current forecast outturn and significant financial challenge presented for the Council to deliver a balanced revenue budget for 2013/14 be noted.

(3)  That the Cabinet’s approval of the proposed strategy to bring spending in line with budget by 31^st March, 2014, be noted.

(4)  That information be provided on the status of the recruitment for the post of Director of Safeguarding and the current business rate target for collection.