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Agenda item

Report of the County Treasurer (CT/19/2) on the budget monitoring position at Month 8, will follow.

 

Minutes:

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

 

The Cabinet considered the Report of the County Treasurer (CT/18/9) on the budget monitoring position at Month 8, 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 Cabinet Member for Resources Management highlighted that the total overspend at month 8 was forecast at £4.8 millions, a decrease of £3.3 millions from month 6. The position assumed a request to carry forward £2.4 millions to next years Dedicated Schools Grant (DSG), yet to be agreed by the Devon Education Forum and also reflected the impact of some of the corporate savings initiatives and confirmation of additional funding to support high needs pressures. 

 

Adult Care and Health Services were forecast to underspend by £385,000. At month 6 the Service was forecasting an underspend of £488,000. The position took into account £84,000 of management action yet to be delivered but considered achievable.

 

The Department of Health and Social Care had announced additional funding to support Adult Social Care in alleviating winter pressures and the Council received an additional allocation of £3.6 millions for 2018/19 and 2019/20. The position reported assumed the funding would be fully spent within the current financial year.  

 

Children’s Services were showing a forecast overspend of £11.1 millions, an increase of £1.2 millions from month 6, with, in the main, overspending on children’s social care (£7.3 millions). Pressure continued within residential placements but were also appearing across the disabled children short breaks service and from legal disbursements.

 

Highways, Infrastructure Development and Waste were also forecasting an underspend of £2.4 millions at month 8 against a break-even position in month 6. As part of the corporate savings initiatives adopted in November a review of the capital programme took place to determine if increased capital works could enable revenue savings. This review resulted in a forecast underspend of £2 millions within highways. 

 

Communities, Public Health, Environment and Prosperity (COPHEP) were showing a forecast underspend of £762,000 compared to a forecast overspend of £153,000 at month 6. The review of the capital programme to determine if capital works could enable savings had resulted in a forecast saving of £255,000.

 

Corporate Services were forecasting a breakeven position, pressures within County Solicitors and HR were being offset by forecast underspends within Digital Transformation and Business Support. 

 

Non-service items were forecast to underspend by £2.8 millions, mainly due to additional investment income and the capitalisation of revenue schemes.

 

The capital programme for the Council was £150.4 millions, with a year end forecast of £129.7 millions, of which £111.8 millions was externally funded, so slippage of £20.7 millions, in the main, could be attributed to scheme variations and programme delays in Adult Care & Health (£2.9 millions) and Planning and Transportation (£13.7 millions) which reflected the complexity of the major schemes within these service areas.

 

Like many other Local Authorities, the Council was continuing to grapple with high levels of demand for Children Services.  Residential Placements, although more stable than earlier in the year continued to be difficult to contain within the budget allocated and pressures against the high needs block of the dedicated schools grant were increasing.  The additional funding to support high needs pressures was confirmed in December, and although welcomed, had only managed cost increases and pressures within the area that had been experienced since month 6.

 

The savings initiatives developed by the Councils Leadership Group (reported in the Month 6 budget monitoring Report) were delivering reductions in revenue expenditure and had contributed to the reduction in the forecast overspend as detailed. These would continue to inform financial forecasts for the remainder of the year.

 

The matter having been debated and the options and/or alternatives and other relevant factors (e.g. financial, sustainability, carbon impact, risk management, equality and legal considerations and Public Health impact) set out in the County Treasurer’s Report and/or referred to above having been considered:

 

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

 

RESOLVED that the forecast overspend of £4.8 millions be noted.

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