Agenda item

To consider a report from the Strategic Director for Finance and Customer Service.

Recommendations:

That Cabinet:

1.    Note the revenue outturn position. 

2.    Note the budgeted transfer to HRA reserves increased by £2.1m following the revenue and capital outturn positions.

3.    Note the carry forward of the combined schools balance of £2.992m in accordance with the Department for Education regulations.

4.    Note the reduced DSG deficit following receipt of Safety Valve funding, as set out in paragraph 2.14.

5.    Note the reserves position set out in paragraphs 2.51 to 2.62.

6.    Note the capital outturn and funding position as set out in paragraphs 2.63 to 2.92.

7.    Note the revised Capital Programme following year end 2022/23 as set out in paragraphs 2.93 to 2.97 and appendices 1 to 4 of this report.

The Assistant Director for Finance introduced the report, which contained a more detailed outline position report to that considered by the Committee at its previous meeting.

It was noted that the outturn position of £7.3m was an improvement on the projected overspend in February of approximately £8.3 - 8.5m.

As agreed previously by Council, the overspend would be covered by the use of reserves. It was noted that the financial position had improved significantly from September’s earlier projection of £18.2m overspend. Savings had been made across all directorates, however there had been a notable reduction in the cost to the Council of placements in Adult Social Care which had contributed to the savings.

A series of short-term temporary savings had been made to reduce the impact of inflation pressures in the 2022- 23 financial year. The bulk of the residual overspend related to those inflationary pressures and energy prices as outlined.

The report also covered the Dedicated School Grant (DSG) position which had significantly improved and the Council continued to work with the Department for Education’s Safety Valve Programme to reduce the deficit.

The Chair invited questions from Members of the Board and a discussion on the following issues ensued:

·       Further clarification was sought on what funding was available from the Home Office to support unaccompanied asylum-seeking children. A briefing would be circulated to the Board.

·       It was noted that Facilities Services were experiencing pressures as a result of rising food prices affecting school meals. Assurance was sought that this would not have a negative impact on the nutritional quality of the meals. The Strategic Director of Regeneration and Environment confirmed that the quality of food had not been affected, however it was outlined that inflationary pressures and supply chain issues had been challenging. It was noted that many Rotherham families may struggle to pay for school meals. Further details were provided on changes to suppliers.

·       Further details were requested in what mitigations were in place for families who may not qualify for free school meals but who may need support. It was outlined that consideration was given to the cost of meals to minimise the impact on families.

·       Clarification was sought on the slippage relating to replacement fire doors. It was outlined that over 1000 doors had been installed and the contractors had provided assurance that the programme would be completed within this current financial year. Work was being undertaken to engage with tenants and residents to address delays.

·       It was outlined that the underspend related to the Housing Revenue Account (HRA) related to circumstantial slippage in the capital programme.

·       It was noted that considerable effort had gone into reducing the overspend in the budget for Child and Young People’s Services over the recent years.

·       It was clarified that inflationary pressures and rising fuel costs had been assigned to Central Services rather than individual directorates.

·       Clarification was sought on the underspend related to Ward Housing Hubs. A response would be provided in writing.

·       Further details were sought on ward projects and if a full breakdown could be provided.

Resolved:

1)    That Cabinet be advised that the following recommendations be supported:

That Cabinet:

1.    Note the revenue outturn position. 

2.    Note the budgeted transfer to HRA reserves increased by £2.1m following the revenue and capital outturn positions.

3.    Note the carry forward of the combined schools balance of £2.992m in accordance with the Department for Education regulations.

4.    Note the reduced DSG deficit following receipt of Safety Valve funding, as set out in paragraph 2.14.

5.    Note the reserves position set out in paragraphs 2.51 to 2.62.

6.    Note the capital outturn and funding position as set out in paragraphs 2.63 to 2.92.

7.    Note the revised Capital Programme following year end 2022/23 as set out in paragraphs 2.93 to 2.97 and appendices 1 to 4 of this report.