Agenda item

Report of the Director of Finance (DF/22/37) outlining the Budget Monitoring position at Month 10, attached.

RESOLVED

(a) that the month 10 budget monitoring forecast position be noted; and

(b) that progress on the delivery of the Dedicated Schools Grant Management Plan also be noted.

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

The Cabinet considered the Report of the Director of Finance (DF/22/37) outlining the Budget Monitoring position at Month 10, 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.

At month 10 it was estimated that budgets would overspend by just over £5.8 million, a reduction of £2.5 million from month 8 and the Dedicated Schools Grant projected deficit, relating to Special Educational Needs and Disabilities (SEND), was forecast to be £39.9 million (to be carried to future years in line with Department of Education guidance).

Government had continued to provide a number of grant funding streams to help support Local Authorities during the pandemic. The confirmed additional funding the Council was expected to receive directly this financial year was currently £57.5 million, in addition to the £25.6 million carried forward from 2020/21.

Adult Care and Health services were forecast to overspend by just over £3.8 million, a reduction of £1.3 million from month 8.

Children’s services were forecasting an overspend of £8.8 million, a reduction of £300,000 from month 8, however, the figure did not include the projected deficit of £39.9 million on Special Education Needs and Disabilities (SEND). A management plan had been prepared and the Council continued to participate in the Safety Valve Intervention Programme with the Department for Education (DFE).

Highways, Infrastructure Development and Waste were forecasting an underspend of £450,000, an improvement of £160,000 from month 8. However, substantial clear-up costs resulting from storms Dudley and Eunice, were not yet finalised and the impact had not been included within the month 10 forecast.

Communities, Public Health, Environment and Prosperity (COPHEP) were forecasting an underspend of £2.6 million, an improvement of £1.1 million since month 8.

Non-service items, which included capital financing charges and business rates pooling gain, were forecast to underspend by £3.3 million.

The approved capital programme for the Council was £217.2 million. The year-end forecast was £174.7 million, producing forecast slippage of £42.5 million. The main areas of slippage could be attributed to variations and programme delays in Planning, Transportation and Environment, which reflected the complexity of the major schemes and also material and labour price increases were being experienced which were detrimentally impacting the delivery costs and tender prices being returned.

Corporate aged debt stood at £2.4 million, being just over 1.0% of the annual value of invoices, against the annual target of 1.9%.

The Cabinet noted it was positive that the forecast overspend had reduced since month 8 and the pressures within Adult Care and Health and Children’s services had continued to stabilise. Close monitoring would continue, and action would be taken where possible to manage pressures further before the end of the financial year. The continuing growth in demand for new Education and Health Care Plans within the Special Educational Needs and Disabilities services continued to be a concern but the commencement of the Safety Valve intervention would, it was hoped, provide the support necessary to bring the service back in to balance.

The matter having been debated and the other relevant factors set out in the Director of Finances Report and/or referred to above having been considered:

it was MOVED by Councillor Twiss, SECONDED by Councillor McInnes, and

RESOLVED

(a) that the month 10 budget monitoring forecast position be noted; and

(b) that progress on the delivery of the Dedicated Schools Grant Management Plan also be noted.