Issue - meetings

Report of the Director of Finance and Public Value (DFP/23/77) presenting the Budget Monitoring position at Month 4, attached.

RESOLVED

(a) that the month 4 budget monitoring forecast position is noted;

(b) that the update on the Safety Valve Intervention programme also is noted;

(c) that an in year virement from service budgets of £10 million, as detailed in section 8 of the report, is agreed; and

(d) that a Safety Valve Support reserve is created and a contribution to it of £10 million is made in year.

(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 (DFP/23/77) presenting the Budget Monitoring position at Month 4, 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 Report outlined the financial position and forecast at month 4 (to the end of July) of the financial year and it was estimated that budgets would overspend by £9.3 million, excluding the Dedicated Schools Grant (DSG) deficit (the DSG projected deficit, relating to Special Educational Needs and Disabilities (SEND), was forecast to be £36.6 million).

The table at section 4 of the Report summarised the month 4 forecast position by directorate (excluding the DSG forecast overspend), but in summary,

Integrated Adult Social Care services were forecast to overspend by £2.2 million, Children’s and Young People’s Futures services were forecasting an overspend of £2.7 million (excluding £36.6 million on SEND), Climate Change, Environment and Transport directorate were forecasting a small underspend of £275,000 generated by staffing and other operational savings within the planning service.

Public Health, Communities and Prosperity were anticipated to outturn to budget and Corporate Services forecasting an underspend of £104,000.

Non-service items, which included capital financing charges, interest earned and business rates pooling gain, were currently forecasting an overspend of £4.8 million, reflecting assumptions around final pay awards and the non-delivery of transformation and best value savings.

The approved capital programme for the Council was £245.6 million, which incorporated amounts brought forward from 2022/23 of £54.7 million and approved in-year changes totalling a net of £17.8 million. The year-end forecast was £210.6 million of which £183.5 million was externally funded and slippage was forecast at £35.0 million.

Corporate debt stood at £4.1 million, being just under 2% of the annual value of invoices, against the annual target of 1.9%. The balance of debt owed would continue to be pursued with the use of legal action where appropriate to do so.

Work was ongoing for all services to achieve in year balance against the budgets agreed by Council in February. Early discussions with the DfE had indicated that any agreement reached in the safety valve programme would require a local contribution from the Authority to fund part of the accumulated deficit. It was therefore recommended that an in-year contribution of £10 million to reserves was made and establish a Safety Valve Support Reserve. This would be achieved by reducing all Directorate budgets by an apportioned share of the £10 million required.

The Cabinet noted it was early in the financial year and much would inevitably change as the year progressed. The current forecast position of £9.3 million carried much risk but work continued across the Council to manage the challenges being faced.

The matter having been debated and the other relevant factors set out in the Director’s Report having been considered:

it was MOVED  ...  view the full minutes text for item 378