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Meeting: 12/01/2022 - Cabinet (Item 101)

101 Budget Monitoring (Month 8) and Target Budget and Service Targets 2022/2023 pdf icon PDF 184 KB

Report of the Director of Finance (DF/22/4) on the Budget Monitoring Position in the current financial year at Month 8 and giving an updated position on the Target Budget and Service Targets for 2022/2023, attached.

Additional documents:

Decision:

RESOLVED

 

(a) that the Month 8 budget monitoring forecast position be noted;

 

(b) that progress on the delivery of the Dedicated Schools Grant Management Plan be noted; and

 

(c) that the Provisional Settlement for 2022/23 also be noted.

Minutes:

(Councillors Biederman, Connett and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).

 

The Cabinet considered the Report of the Director of Finance (DF/22/4) on the Budget Monitoring Position in the current financial year at Month 8 and an updated position on the Target Budget and Service Targets for 2022/2023, 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 over £8.3 million, an increase of £1.3 million from month 6. The Dedicated Schools Grant projected deficit, relating to Special Educational Needs and Disabilities (SEND), was forecast to be £39.0 million. In line with Department of Education guidance this deficit would not be dealt with this financial year but carried forward to future years.

 

Adult Care and Health Services were forecast to overspend by just over £5.1 million, a reduction of £71,000 from month 6 and the position included £3.2 million of budgeted savings.

 

Children’s Services were forecasting an overspend of £9.1 million, an increase of £1.8 million from month 6 (not including the projected deficit of £39.1 million on Special Education Needs and Disabilities (SEND)).

 

Highways, Infrastructure Development and Waste was forecasting an underspend of £290,000 an improvement of £76,000 from month 6, the result of additional overheads being funded from the highways permitting scheme.

 

Communities, Public Health, Environment and Prosperity (COPHEP) were forecasting an underspend of £1.5 million and Corporate Services were forecasting an underspend of £671,000, and small reduction of £13,000 from month 6. Non-service items, which included capital financing charges and business rates pooling gain, were forecast to underspend by £3.5 million.

 

The approved capital programme was £216.7 million, including amounts brought forward from 2020/21, and other prior year approvals, of £46.2 million, and in year additions of £23.1 million. The year-end forecast at Month 8 was £184.4 million with slippage forecast at £32.3 million. The main areas of net slippage could be attributed to scheme variations and programme delays in Planning, Transportation and Environment, which reflected the complexity of the major schemes within this service area.

 

In response to the COVID-19 outbreak the Government had continued to put in place a number of grant funding streams to help support Local Authorities in responding to the pandemic and the Council was in direct receipt of pandemic related grants with a confirmed value of £50.7 million. In addition to the funds received this year the Authority was able to carry forward £25.6 million of funding received last year, mainly related to Contain Outbreak Management Funding, Test and Trace Funding and the Covid Support Grant.

 

The Report outlined that on the 16 December 2021, the Secretary of State for the Department for Levelling Up, Housing and Communities (DLUHC), Rt. Hon. Michael Gove MP, released a written statement to Parliament on the provisional Local Government Finance Settlement 2022/23 which was for one year only and based on the Spending  ...  view the full minutes text for item 101


Meeting: 08/12/2021 - Cabinet (Item 86)

86 Target Budget and Service Targets for 2022/2023 pdf icon PDF 142 KB

The Report of the Director of Finance on the Target Budget and Service Targets for 2022/2023 will follow.

 

Additional documents:

Decision:

RESOLVED

 

(a) that the expected timing of the Provisional Settlement be noted;

 

(b) that the revenue spending targets for 2022/23 as set out in paragraph 2 of the Report, be approved; and

 

(c) that the Capital Programme be determined by Cabinet on 11th February 2022.

Minutes:

(Councillors Biederman, Connett, Dewhirst and Hannaford attended in accordance with Standing Order 25(2) and spoke to this item).

 

The Cabinet considered the Report of the Director of Finance (DF/21/23) 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 relating to the Budget Targets for 2022/2023.

 

The Targets had been set out in paragraph 2 and represented an overall increase of £48.7 million or 8.4%.

 

The Provisional Local Government Finance Settlement had not been announced but was expected the week commencing 13th December. The exact date was not known but Members noted that an update on the Provisional Settlement would be provided at the January Cabinet meeting.

 

As previously reported, significant pressures continued to be experienced and the unprecedented set of circumstances faced by the Country had led to demand growth, cost base increases and acute labour shortages. Adult Care and Health and Children’s Services were continuing to experience in year operational pressures that were impacting financial performance.

 

It was proposed to further support time limited pressures, invest to save programmes and to provide these critical services with time to manage demand and transform further by utilising some of the Council’s reserves and this commitment and its implications would be detailed within the budget papers in January.

 

The Capital Programme for 2022/23 to 2026/27 would also be presented to Cabinet at the February Budget meeting.

 

The proposed targets were set out in the table below.

 

 

 

2021/22 Adjusted Budget *

Savings & additional Income

2022/23 Budget

Net change

 

 

 

 

Inflation & Pressures

 

 

 

 

 

 

£000

£000

£000

£000

 

£000

%

1

Adult Care & Health

283,294

47,875

(18,241)

312,928

 

29,634

10.5%

2

Childrens Services

159,036

28,787

(11,675)

176,148

 

17,112

10.8%

3

Communities, Public Health E&P

40,280

3,809

(2,846)

41,243

 

963

2.4%

4

Corporate Services

40,937

3,612

(2,830)

41,719

 

782

1.9%

5

Highways, Infrastructure D&W

57,124

3,349

(3,149)

57,324

 

200

0.4%

 

 

 

 

 

 

 

 

 

 

 

580,671

87,432

(38,741)

629,362

 

48,691

8.4%

 

 

 

 

 

 

 

 

 

 

* Adjusted for permanent virements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The matter having been debated and other relevant factors as set out in the Director of Finance’s Report and/or referred to above having been considered:

 

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

 

RESOLVED

 

(a) that the expected timing of the Provisional Settlement be noted;

 

(b) that the revenue spending targets for 2022/23 as set out in paragraph 2 of the Report, be approved; and

 

(c) that the Capital Programme be determined by Cabinet on 11th February 2022.



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