Agenda item

Report of the Strategic Director of Finance and Customer Services

Cabinet Member:     Councillor Alam

Commissioner:         Ney (in advisory role)

Recommendations:

1.    That the current forecast overspend for 2017/18 of £3.4m be noted.

2.    That it be noted that management actions continue to be developed to address areas of overspend and to identify alternative and additional savings to mitigate shortfalls in achieving planned savings in 2017/18.

3.    That it be noted that a detailed Dedicated Schools Grant (DSG) Recovery Strategy which will transfer £3m in 2017/18 to reduce the forecast High Needs Block deficit and mitigate the in-year pressure through a series of measures has been set in place.    

4.    That the current forecast outturn position on the approved Capital Programme for 2017/18 and 2018-2022 be noted.

Consideration was given to the report which set out the financial position for the Revenue and Capital Budgets at the end of July 2017 and was based on actual costs and income for the first four months of 2017/18 and forecasted for the remainder of the financial year.

As at July 2017 the Council had a forecast overspend on the General Fund of £3.4m. The majority of the £24m budget savings approved within the 2017/18 budget were being achieved. £11.9m of those savings were Directorate budget savings, however, in addition to those budget savings, Directorates also have to achieve £5.4m of budget savings in 2017/18 which were agreed in previous budgets. Total Directorate savings for 2017/18 were, therefore, £17.3m. The current position was that around £5.2m of those total savings were at risk of not being achieved in this financial year in the manner approved by Council when the 2017/18 was set (and were reflected in the current overspend projection along with the impact of mitigating actions).

A significant in-year pressure of £6.460m on the Dedicated Schools Grant (DSG) High Needs Block continues.   A recovery strategy set in place last year would, however, resolve £3m of the deficit and mitigate the in-year pressure through a series of measures including: a revised Special School funding model; a review of high cost out of authority education provision with a view to reducing cost and moving children back into Rotherham provision where possible; and a review of inclusion services provided by the Council.  Whilst this pressure did not directly affect the Council’s financial position at this time it was imperative that the recovery strategy is implemented which clearly set out how this position would be resolved and to avoid any risk to the Council in the future.

Control over spending was critical to maintaining a robust Medium Term Financial Strategy and avoiding unplanned spending impact on the Council’s reserves. All Services continue to develop mitigating actions and alternative savings to compensate for financial pressures and delays in delivering the full amount of savings. The financial impact of the mitigating actions that have been identified and implemented to date were reflected in the current forecast outturn. 

The July revenue full year forecast for Children’s and Young People’s Services was £2.592m over budget. The service continued to face a range of pressures. Further actions to mitigate the budget pressures were being developed by the Service.

It was confirmed, in relation to a query raised, that support was available for victims of child sexual exploitation, but that Government intervention for a statutory review of funding for those at risk of significant harm was still awaited.

It was also noted the HRA forecast outturn and budgeted use of reserves would now be less than planned, but a revision position would be submitted to the Cabinet in due course.

Resolved:-  (1)  That the current forecast overspend for 2017/18 of £3.4m be noted.

(2)  That the management actions continuing to be developed to address areas of overspend be noted and any alternative and additional savings to mitigate shortfalls in achieving planned savings in 2017/18 be identified.

(3)  That a detailed Dedicated Schools Grant (DSG) Recovery Strategy which will transfer £3m in 2017/18 to reduce the forecast High Needs Block deficit and mitigate the in-year pressure through a series of measures has been set in place be noted.

(4)  That the current forecast outturn position on the approved Capital Programme for 2017/18 and 2018-2022 be noted.