Agenda item

Report FSD14060

Members considered the second budget monitoring position for 2014/15 based on expenditure and activity levels to July 2014.  Approval was sought inter-alia for the release of sums from Central Contingency and to a number of carry-forward requests. Member views were also sought on the amount of monies that should be set aside as an earmarked reserve for the “Parallel Fund”.

With a projected net overspend on services (of £4,351k) the Leader highlighted the importance of revenue expenditure being contained within budget and for action to be taken by Portfolio Holders and officers to ensure this happens. The Leader emphasised that the projected overspend position needed to be addressed within the next six weeks. 

Portfolio Holders provided brief commentary on the budget position for their Portfolios including details of specific challenges.

The Portfolio Holder for Resources highlighted that there were now several instances of unfunded new burdens placed on the Council and hoped that details were being passed to local MPs. He also asked for a report on progress with Invest to Save measures. Additionally, with pressure building on operational housing, the Portfolio Holder suggested that unallocated s106 receipts for housing be used towards the pressures. The Portfolio Holder for Renewal and Recreation suggested that any invest to save commentary identify how much has been paid back.

On new burdens – particularly the impact of welfare reforms - it was explained that the Department for Work and Pensions would say there is no impact on local authorities. On invest to save, there had been previous discussions at PDS Committees and a report would be brought back to the Executive. For s106 monies earmarked for housing, a more flexible use of the funding now enabled it to be used for short term housing; the Renewal and Recreation Portfolio Holder indicated that some s106 funding had already been used to purchase some properties. 

Concerning monies to be set aside as an earmarked reserve for the “Parallel Fund” it was agreed that a sum of £2.7m should be set aside by way of a one-off lump sum.

RESOLVED that:

(1) the latest financial position be noted along with a projected net overspend on services of £4,351k based on information at July 2014;

(2) the full year cost pressures of £5.5m as detailed at section 3.9 of Report FSD14060 be noted;

(3) a projected reduction to the General Fund balance of £3.8m to £16.2m be noted as detailed at paragraph 3.8 of Report FSD14060;

(4) comments from the Director of Transformation and Regeneration, the Director of Education, Care and Health Services and the Director of Environment and Community Services as detailed at sections 3.2 ,3.3 and 3.4 of Report FSD14060 be noted;

(5) funding of £66k be released from Central Contingency for Welfare Reform as detailed at paragraph 3.5.2 of Report FSD14060;

(6) funding of £36k be released from Central Contingency for Staying Put as detailed at paragraph 3.5.3 of Report FSD14060;

(7) all carry forward requests at paragraphs 3.6.1 - 3.6.7 of Report FSD14060 be agreed;

(8) changes in allocation of Government Grant funding for 2014/15 as detailed at section 3.7 of Report FSD14060 be noted; and

(9) a one-off lump sum of £2.7m be set aside as an earmarked reserve for the “Parallel Fund”.