Agenda item

Report of the County Treasurer (CT/19/35) on the budget monitoring position at Month 10, attached.     

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

The Cabinet considered the Report of the County Treasurer (CT/19/35) on the month 10 budget monitoring position, 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 forecast for the Authority at month 10 as a breakeven position for the year end, which was a reduction of £4.8 millions from month 8. This continued to assume that a request to carry forward £2.4 millions to next year’s Dedicated Schools Grant (DSG) would be agreed by the Devon Education Forum. It also reflected the impact of the corporate savings initiatives, confirmation of additional funding to support high needs pressures and a refund received from the national Business Rates Retention Scheme Levy Account.

In relation to Adult Care and Health Services, the service was forecast to underspend by £636,000, compared to Month 8 which had been forecasting an underspend of £385,000. Work associated with the additional allocation of £3.6 millions to support winter pressures was underway.

Children’s Services were showing a forecast overspend of £12 millions, which was an increase of £900,000 from month 8. £7.6 millions of the overspend was in Children’s Social Care with pressures within residential placements and the disabled children short breaks service as well as legal disbursements. The DSG was also forecast to overspend by £3.7 millions.

Highways, Infrastructure Development and Waste was forecasting an underspend of £3.0 millions at month 10, a £600,000 increase from month 8. As part of the corporate savings initiatives adopted in November 2018 a review of the capital programme took place to determine if increased capital works could enable revenue savings, which resulted in a forecast underspend of £2 millions within highways.

Communities, Public Health, Environment and Prosperity (COPHEP) were forecasting an underspend of £1.2 millions, compared to £762,000 at month 8.

In Corporate Services, the position was an underspend of £156,000 compared to a breakeven position at month 8. Pressures within County Solicitor’s and HR were being offset by forecast underspends within Digital Transformation and Business Support.

Non-service items were forecasting a £7.1 millions underspend, whereas at month 8 the position had been £2.8 millions.  The change was due, in the main, to further additional investment income from higher interest rates, an increase in capitalisation and the release of some non-ringfenced grants.

The approved capital programme for the Council was £150.6 millions with a year-end forecast of £125.9 millions. Slippage had increased by £3.6 millions since month 8 and was now forecast at £24.7 millions. The main areas of net slippage were attributed to scheme variations and programme delays in Adult Care and Health (£2.5 millions) and Planning and Transportation (£13.9 millions) which reflected the complexity of the major schemes within the service areas.

To summarise, the Cabinet noted the good news that the projection at month 10 was for a breakeven position. The savings initiatives continued to deliver reductions in revenue expenditure. The position had also benefited from confirmation of a refund from the national Business Rates Retention Scheme Levy Account as well as being able to release some nonearmarked grants to support a breakeven forecast position.

Like many other Local Authorities, the Council continued 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 DSG were increasing and continued to be cause for concern.

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

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

RESOLVED that the Month 10 budget monitoring forecast position be noted.