Issue - meetings

Report of the County Treasurer (CT/16/92) on the position at Month 6, attached.

(Councillors Brazil, Connett, Julian and Westlake attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the County Treasurer (CT/16/92) on the financial position at Month 6 outlining those areas of  specific pressures on budgets, potential under- and over-spendings in the current financial year and on management action being taken where individual budget lines were experiencing such pressures.  

The Cabinet noted that, overall, the forecast for revenue spending at year-end showed a  projected overspend of £7,000,000. This was a small reduction over the previous reported forecast with the main pressures continuing to be in the areas of Adult Social Care and in Children’s Social Work and Child Protection, for the reasons previously advised (Minute 72   refers).  While acknowledging that the projected overspend at year-end had reduced slightly as a result of management action and noting planned savings strategies outlined in the County Treasurer’s Report, Members were nonetheless advised that there appeared little prospect of full recovery by the year-end.  While the projected overspend could be offset by using centrally held budgets as also posited in the Report now before Cabinet, that would not however address the potential impact of spending pressures in future years and it was also suggested that it might prove necessary to consider whether other actions such as the cessation of spending in specific Service areas, vacancy management (including use of consultants) or spending embargos would be necessary to manage spending in the remaining six months of the financial year.

The matter having been debated and the options and/or alternatives and other relevant factors set out in the County Treasurer’s Report and/or referred to above having been considered

It was MOVED by Councillor Clatworthy, SECONDED by Councillor Hart, and

RESOLVED

(a) that the position based on Month 6 be noted;

(b) that acknowledging the limited capacity to fund the current projected overspend from Reserves or centrally held budgets, the Leader of the Council and the Chief Executive consider and determine what direct actions, such as spending embargoes, non-automatic replacement of vacant posts and consultants and/or any freeze on service spending,  should be implemented before the next Monitoring Report (Month 8)  to Cabinet.