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Meeting: 10/01/2018 - Cabinet (Item 108)

108 Budget Monitoring: Month 8 pdf icon PDF 61 KB

Report of the County Treasurer (CT/18/01) on the Month 8 position in respect of the 2017/2018 budget, attached.

 

Additional documents:

Minutes:

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

 

The Cabinet considered the Report of the County Treasurer (CT/18/1) on the financial position at Month 8 and outlining areas of specific pressures on budgets, potential under and over-spendings in the current financial year and management action being taken where individual budget lines were experiencing pressures.

 

The Cabinet noted that, overall, the forecast for revenue spending at year-end now showed an underspend of £2.6 millions, a slight increase on the month 6 position.

 

The Cabinet noted that Adult Care and Health services was forecast to underspend £4.769 millions, which was an increase of £599,000 from the underspend reported at month 6, mainly due to an improvement in the locality operational position, additional staff vacancy savings and savings on contracts. The position took into account £522,000 of management action yet to be achieved.

 

Children’s Services were showing a forecast overspend of £3.335 millions, which was an increase on the month 6 position of £640,000, with children’s social care forecast to over spend by £2.4 millions and the placements budget forecast to overspend by £2.6 millions.   The key factors causing the cost pressures and the risks presented to the financial position had not changed from those previously reported at month 6.

 

Highways, Infrastructure Development and Waste were showing a small underspend of £212,000, however the risks to the position, such as extreme weather and waste disposal tonnages would be monitored throughout the year. Expected savings from the new arrangements with Skanska had been built into the budget and were being achieved and there was additional income received in respect of the Plymouth and Exeter energy from waste plants.

 

Corporate Services were forecast to break-even at the year end and Communities, Public Health, Environment and Prosperity (COPHEP) Services were showing a forecast overspend of £110,000 a slight improvement on month 6 of - £23,000, mainly due to staff savings.

 

The approved capital programme for the Council was £161.803 millions, with the year-end forecast of £139.268 millions, producing slippage of £22.534 millions. Significant areas of slippage had been identified in respect of Marsh Barton station, Tiverton Eastern Urban Extension, South Devon Highway, A361 Gornhay to M5 and Connecting Devon & Somerset.

 

In summary, Cabinet noted that the ongoing pressures in Children’s Services were concerning; not only in relation to the current year but the ongoing impact over the medium term. 

 

Whilst the forecast overall underspend of £2.6 millions was welcome; it had to be treated with caution as the remainder of the winter was still unknown and as an example the Council had incurred spending of approximately £250,000 on gritting operations over the last few weeks.

 

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 that the financial position and forecast for the Authority at  ...  view the full minutes text for item 108



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