Agenda item

Report FSD 16069

Members received a second budget monitoring report for 2016/17 based on expenditure and activity levels to the end of September 2016.

The monitoring report highlighted current projections of an overall net overspend of £7,377k on portfolio budgets.

Potential for a budget gap of over £20m in a further three to four years was highlighted unless significant financial savings could be made in the meantime; it was important to contain future cost pressures and identify savings early to mitigate the pressures.

Within Care Services officers monitored costs particularly closely. Work was continuing to reduce costs and projections were looking a little more positive e.g. Special Educational Needs (SEN). Although many budgets were volatile and demand driven, significant effort was being made to achieve savings with a number of work streams ongoing. It was particularly necessary to reduce costs in areas such as care services for adults and placement costs. It was also important to ensure sufficient resources in response to the OFSTED inspection of Children’s Services during the summer.  

The Leader thanked the Executive and Resources PDS Committee for its helpful scrutiny of the budget position on 23^rd November 2016. It was necessary to have a follow-up of the budget position in January and the Leader asked that all Directors be present at the Executive’s meeting on 11^th January 2017. Following the Chancellor’s Autumn Statement, the Leader also felt that it would be helpful for the Government to provide further detail (particularly in regard to social care costs faced by local authorities).

Cllr Fawthrop, Chairman of the Executive and Resources PDS Committee, sought re-assurance that the overspend currently projected would not materialise at year-end. It was necessary to respond positively to the OFSTED Inspection outcome of Children’s Services but it was also necessary to focus on staying within budget. Cllr Fawthrop was expectant of an improvement in view of a new Executive Director of Education, Care and Health Services being appointed.

The Leader referred to efficiency improvements being made within Care Services including those related to procurement. At the Executive’s January meeting it would be possible for the new Executive Director to outline his intentions to reduce costs. The Leader requested that Chief Officers attend Executive meetings to hear the views of Members directly.  

RESOLVED that:

(1)  the latest financial position be noted;

(2)  a projected net overspend on services of £7,377k be noted based on information at September 2016;

(3)  comments from the Education, Care and Health Services Department, the Director of Education and the Executive Director of Environment and Community Services be noted as detailed at sections 3.2 and 3.3 of Report FSD 16069;

(4)  a projected variation of Cr £3.4m in the Central Contingency be noted as detailed at section 3.4 of Report FSD 16069;

(5)  a projected reduction to the General Fund balance of £5.4m be noted as detailed at section 3.7 of Report FSD 16069;

(6)  a sum of £33k be released from Central contingency to cover the recent increase in employment tribunal work as detailed at paragraph 3.4.3 of Report FSD 16069;

(7)  a sum of £97k for the Youth Offending Service be released from Central Contingency as detailed at paragraph 3.4.4 of Report FSD 16069;

(8)  reports elsewhere on the agenda request the drawdown of a total of £1,574k from Central Contingency as set out at paragraph 3.4.2 of Report FSD 16069;

(9)  the carry forwards being requested for drawdown from Central Contingency totalling £97k (net) be noted as detailed at section 3.5 of Report FSD 16069; 

(10)  the Prior Year Adjustment of £69k as detailed at section 3.6 of Report FSD 16069 be noted;

(11)  the full year cost pressures of £4.8m as detailed at section 3.8 of Report FSD 16069 be noted; and

(12)  an additional £80k funding related to the New Homes Bonus had been transferred to the Investment Fund earmarked reserve as detailed at paragraph 3.12.1 of Report FSD 16069.