Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

1.    That Cabinet note the forecast General Fund outturn position.

2.    That further actions that are identified to reduce the forecast level of expenditure be reported back to Cabinet.    

3.    That Cabinet note the updated position of the Capital Programme.

Consideration was given to the latest report which set out the financial position as at the end of September, 2018 and was based on actual costs and income for the first half of the financial year with forecasts for the remaining six months of 2018/19. Financial performance was a key element within the assessment of the Council’s overall performance framework, and essential for the achievement of the objectives within the Council’s Policy Agenda.

As at September 2018, the Council needed to identify a further £3.1m of cost reduction actions by financial year-end in order to achieve a balanced financial outturn, after taking account of the £10m budget contingency approved within the 2018/19 budget.

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 and had reached 655 at the time of writing this report. The forecast overspend on Children’s Services had now increased to £15.7m

Mitigating savings and actions identified to date were set out in Table 1 and described within the report.

The Chair of the Overview and Scrutiny Management Board confirmed this report had been considered at the meeting of the Board on 14^th November, 2018 who were fully supportive of the recommendations.  Further work would continue to monitor progress of the overspends in Children and Young People’s Services.

Cabinet Members noted the current position and the budget pressures facing the Council and the work taking place to meet the continuing demand.

Resolved:-  (1)  That the forecast General Fund outturn position be noted.

(2) That further actions identified to reduce the forecast level of expenditure be reported back to Cabinet.    

(3)  That the updated position of the Capital Programme be noted.