Agenda item

Report of the Strategic Director of Finance and Customer Service

Recommendations:-

1.    That Cabinet:

i.      Note the forecast General Fund outturn position;

ii.    Note the actions being taken to reduce the forecast overspend;   

iii.   Note the updated capital programme 2018/19 to 2021/22;

iv.   Note the capital grant funded budget inclusions and variations as detailed within the updated Capital Programme.

v.    Approve the alternative budget savings proposals for the Regeneration and Environment directorate as referenced in Paragraph.2.4.4.

Consideration was given to the report which set out an improved financial position compared to that previously reported to Cabinet in February 2019. It was based on actual costs and income for 11 months of the financial year with forecasts for the final month 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. For that reason, this report was part of a series of monitoring reports for the current financial year which were brought forward to Cabinet on a regular basis.

In February 2019, the Council reported that it needed to identify a further £0.507m of cost reduction actions by the financial year-end in order to achieve a balanced budget.  The current revenue position after 11 months  showed an improved position on that previously reported, however £0.126m of cost reduction actions were still required by the 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.

This was a reduction of £0.381m in comparison to the £0.507m cost reductions reported in February, 2019. This was largely due to the improved forecasts for Assistant Chief Executive and Adult Care Services. 

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 forecast overspend on Children’s Services had remained broadly consistent with the last report at £15.704m

The number of Looked after Children hearings also placed significant pressure on Legal Services within the Finance and Customer Services Directorate, with the current forecast overspend for Legal Services standing at £1.253m. The Finance and Customer Services Directorate overall was forecasting to outturn within budget after putting into place a range of actions to mitigate the Legal Service forecast overspend. 

The Adult Care Services Directorate was on track to bring its overspend down to £5.399m. 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 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.

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, including transport and property savings.

Mitigating savings and actions identified to date were set out in detail as part of the report along with details of the capital grant funded budget inclusions and variations within the Capital Programme 2018/19 to 2021/22.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations.

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

(2)  That the actions being taken to reduce the forecast overspend be noted.

(3)  That the updated capital programme 2018/19 to 2021/22 be noted.

(4)  That the capital grant funded budget inclusions and variations as detailed within the updated Capital Programme be noted.

(5)  That the alternative budget savings proposals for the Regeneration and Environment Directorate as referenced in Paragraph.2.4.4 be approved.