Decision details

(Councillors Brazil, Leaver and Whitton attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the Director of Finance and Public Value (DFP/25/1), which presented the Budget Monitoring Position at Month 8, circulated prior to the meeting in accordance with regulation 7(4) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.

At Month 8 it was estimated that budgets would overspend by just under £3.9 million which was an improvement of £141,000 on the month 6 position. However, it was important to note that this excluded the Dedicated Schools Grant (DSG) deficit (outlined in full at 3.22 of the Report). Financial risks within Integrated Adult Social Care and Children and Young People’s Futures were still being experienced, but work continued to ensure the whole organisation was focused on achieving a break-even position by the end of the year.

Considerable work had been undertaken since spring 2024 to accelerate and deliver upon a range of Safety Valve and SEND service critical objectives and improvements. This included the launch of the Authority’s updated SEND Strategy, the rollout of early help pilot activity in North Devon, a range of support work around systems and statutory process improvements to assist and improve the handling of plan development, and agreement and cross organisational working around autism and other health related priorities. Progress continued around addressing the backlog of EHCP plans.

The DSG was forecasting an overspend of £51.6 million at month 8, an increase of £5.8 million from month 6.  The table at 3.1 of the Report summarised the Month 8 forecast position by directorate, excluding the Dedicated Schools Grant forecast.

                Integrated Adult Social Care services were forecast to overspend by £3.6 million, an increase of £2.5 million from month 6. Children and Young People’s Futures services were forecasting an overspend of £7.5 million, an increase of £212,000 from month 6 (not including the projected deficit on Dedicated Schools Grant (DSG) funded Special Education Needs and Disabilities (SEND)).

At Month 8, the Climate Change, Environment and Transport directorate was forecasting an underspend of £2.2 million, an increase of £160,000 from month 6. Public Health and Communities were forecasting an underspend of £2.1 million relating to vacancy management and delayed heritage projects. Performance and Partnerships were forecasting a small underspend of £48,000, and Corporate Services is forecasting an overspend of £1.8 million, a reduction of £100,000 from month 6.

The approved capital programme budget for the Council is £234.7 million in 2024/25. The year-end forecast was £190.3 million, or 81% of the programme, of which £159.9 million was externally funded. The variance to budget of £44.4 million included a current forecast of slippage of £38.6 million into subsequent years, mainly due to Major Schemes within the Climate Change, Environment and Transport Directorate.

The Capital Receipts position, which was an important element of the Council’s capital financing strategy, was outlined at paragraph 3.38.

Corporate debt stood at £7.01 million and earmarked reserves (excluding schools and non-schools carry forwards) stood at just under £101 million.  During 2024/25 earmarked reserves were expected to decrease by just over £26 million to just over £75 million.

The matter having been debated and the options and alternatives and other relevant factors (e.g. financial, sustainability and carbon impact, risk management, equality and legal considerations and alignment with the Council’s Strategic Plan) set out in the Director’s Report having been considered:

it was MOVED by Councillor Twiss, SECONDED by Councillor McInnes, and

RESOLVED

(a) that the Month 8 budget monitoring forecast position and the Safety Valve Intervention programme update be noted; 

(b) that the Budget movements to date as set out in Appendix 1 and the forecast reserves position also be noted; and

(c) that Council’s seeks further engagement with government on SEND provision