Report of the County Treasurer (CT/20/08) on the budget monitoring position at month 8, attached.
(Councillors Connett and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).
The Cabinet considered the Report of the County Treasurer (CT/20/08) on the budget monitoring position at month 8 (to the end of November 2019), 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.
The Cabinet noted that the total projected overspend at month 8 was £3.4 millions, a £1.9 millions reduction from the £5.3 millions forecast at month 6.
In relation to Adult Care and Health Services, the service was forecast to overspend by £6.8 millions, £137,000 worse than month 6. The position included £749,000 of management actions yet to be delivered but which were still considered achievable.
For Children’s Services, the forecast was an overspending of £6.6 millions. However, this did not include projected funding shortfall of £21.5 millions on SEND as explained in sections 3.7 to 3.9 of the Report.
In Highways, Infrastructure Development and Waste, the service was forecasting an underspend of £515,000 at month 8, an increase of £113,000 from month 6.
For other Services, Communities, Public Health, Environment and Prosperity (COPHEP) was forecasting an underspend of £482,000 an increase of £478,000 from month 6, and Corporate Services forecasting an overspend of £2.3 millions, a similar position to month 6.
Non- service items were forecast to underspend by £11.4 millions which would be achieved by not making the planned £3 millions transfer to the budget management reserve or the planned £5 millions contribution to the service transformation reserve in the current year.
The approved capital programme for the Council was £150.2 millions and the year-end forecast was £120.5 millions, producing forecast slippage of £29.7 millions. The main areas of slippage could be attributed to variations and programme delays in Planning and Transportation, £23.4 millions net slippage, reflecting the complexity of the major schemes within the service.
In summary, the projected overspend had reduced by £1.9 millions from month 6 which was welcomed, although Adult and Children’s Social Care continued to experience ongoing pressure along with the School’s Transport service. The funding shortfall within the Dedicated School’s Grant SEND High Needs Block continued to be a significant concern for this year and into the future.
The matter having been debated and the options and/or alternatives and other relevant factors (e.g. financial, sustainability (including carbon impact), risk management, equality and legal considerations and Public Health impact) set out in the County Treasurers Report and/or referred to above having been considered:
it was MOVED by Councillor Hart, SECONDED by Councillor McInnes, and
RESOLVED that the Month 8 budget monitoring forecast position be noted.