Issue - meetings

Report of the Director of Finance and Public Value (DFP/23/99) on the budget monitoring position at month 6. This Report will follow.

RESOLVED

(a) that the month 6 budget monitoring forecast position be noted;

(b) that the ongoing significant work, in line with the Sustainable and Stronger Council plan, be noted to ensure the current projected overspend is brought back in balance by year end; and

(c) that the update on the Safety Valve Intervention programme further be noted.

(Councillors Aves, 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/23/99) presenting the Budget Monitoring position at Month 6.

The Report outlined the financial position and forecast at month 6 (to the end of September) of the financial year. In September 2023, Cabinet agreed to reduce all Directorate budgets by an apportioned share of £10 million to create a corresponding Safety Valve Support Reserve.

At month 6, £7.1 million of this £10 million had been identified as deliverable, with plans still being developed to meet the remaining £2.9 million, therefore the month 6 position included the current forecast level of delivery of this in year budget adjustment (detailed in full at section 2.2).

At month 6 it was estimated that budgets would overspend by £13.6 million, excluding the dedicated schools grant deficit. Whilst this was an increase of £4.3 million from the month 4 position, £2.9 million of this increase related to the new in year budget saving target (see 2.2).

The majority of Directorates had evidenced the ability to maintain a forecast balanced position, meet budgeted savings, and taking onboard the additional in year savings linked to the safety valve programme, demonstrating strong financial management. However, there were emerging risks within Children and Young People’s Futures with increasing numbers of complex placements and continued pressure associated with excessive agency costs. In response, the establishment of a cross council placement taskforce was seeking to address the issue at pace and there had been significant progress in stabilising management tiers and reducing agency levels.

The Dedicated Schools Grant projected deficit, relating to Special Educational Needs and Disabilities (SEND), was forecast to be £37.1 million, an increase of £547,000 from month 4.

The table at section 2 of the Report summarised the month 6 forecast position by directorate (excluding the DSG forecast overspend), and also the current forecast level of delivery of the apportioned share of £10m safety valve reserve.

In summary, Integrated Adult Social Care services were forecast to overspend by £911,000 (a reduction of £1.2million from month 4) and Children’s and Young People’s Futures services were forecasting an overspend of £9.3 million (an increase of £6.6 million from Month 4 and excluding the projected deficit of £37.1 million on SEND). A second round of discussions with the Department for Education (DfE) were underway as part of the Safety Valve Intervention programme.

Climate Change, Environment and Transport directorate were forecasting an underspend of £440,000, a reduction of £165,000 from month 4, Public Health, Communities and Prosperity were anticipated to outturn to budget and Corporate Services forecasting an overspend of £201,000, an increase of £305,000 from month 4.

Non-service items, which included capital financing charges, interest earned and business rates pooling gain, were currently forecasting an overspend of £3.6million, a reduction of £1.2 million from month 4, as a result of higher interest levels.

The approved capital programme for the  ...  view the full minutes text for item 417