Issue - meetings

Report of the Director of Finance and Public Value (DF/22/99) outlining the Budget Monitoring position at Month 6. This Report will follow.

RESOLVED

(a) that the Month 6 budget monitoring forecast and the very challenging financial position faced by the Council be noted;

(b) that the immediate action being taken to safeguard the financial sustainability of the Authority be supported;

(c) that the savings and additional income resulting from the Financial Sustainability Programme be noted;

(d) that the introduction of a new charge when novating contracts be agreed, with immediate effect;

(e) that changing the financing of the Special Educational Needs Capital Programme totalling £12.3 million from internal borrowing to external grant be approved; and

(f) that authority be given to change the financing of other capital projects totalling £8.7 million from internal borrowing to Capital Receipts.

(Councillors Biederman, Brazil, Dewhirst 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 (DF/22/99) outlining the Budget Monitoring position at Month 6.

The Report outlined the financial position and forecast for the Authority at Month 6 (to the end of September) of the financial year and it was estimated that budgets would overspend by £6.3 million, excluding the dedicated schools grant deficit.

This was made up of an underlying overspend of £32.8 million reduced by £26.5 million of Financial Sustainability Programme (FSP) proposed savings and income.

An inflationary pressure risk continued to be present which could result in increases to the forecast overspend if it could not continue to be contained. In addition, the Cost of Living Crisis and geopolitical situation had created huge financial pressures nationally and the Council was not immune from this.

Immediate action had been taken to safeguard the financial sustainability of the authority for the current financial year and work continued to identify further in-year cost containment measures, including the identification of services and projects in both revenue and capital that could be transformed, modernised, remodelled, funded differently, ceased, or postponed. At Month 6, £26.5 million of in-year savings and additional income had been identified.

The Dedicated Schools Grant projected deficit, relating to Special Educational Needs and Disabilities (SEND), was forecast to be £36.9 million, an increase of £3 million from Month 4. The outcome of the discussions with the Department for Education as part of the Safety Valve Intervention were still awaited.

The table at section 2.1 of the Report detailed the forecast outturn position by service area at month 6. The underlying overspend, column (c), detailed the forecast outturn position before the impact of the financial sustainability programme (FSP) being taken into consideration. The impact of the proposed FSP savings was shown in column (d) and the final Month 6 overspend or

underspend in column (e).

Integrated Adult Social Care were forecasting an overspend of £2.8 million and Children and Young People’s Futures an overspend of £17.4 million

and a further overspend of £36.9 million on Special Education Needs and Disabilities (SEND).

The remaining Directorates were forecasting an underspend of £6.2 million at Month 6. The underlying forecast position was a small underspend of £300,000. Additional savings identified as part of the FSP totalled £5.9 million.

Non-Service items, which included capital financing charges and business rates pooling gain were forecasting an underspend of £7.3 million. The underlying position was a forecast pressure of £4.8 million, predominantly the forecast impact of the 2022/23 pay award. The FSP had identified further savings of £12.2 million.

The Tactical Leadership Team (TLT) was continuing to identify, scope and develop proposals for consideration alongside monitoring and reviewing the overall progress and delivery of actions already underway. The Month 6 position reflected £28.6 million of proposed savings identified through the Financial Sustainability Programme and a high level summary by type of  ...  view the full minutes text for item 237