Issue - meetings

A report from the Councillor Gold, Cabinet Member for Finance and Communities is attached.

Councillor Gold, Cabinet Member outlined the forecast financial position of the Council at the end of 2022/23 based on the information known at the end of the third quarter, 31st December 2022. The report set out the position for both revenue and capital and provides an analysis of the variances, both under and overspending.

Councillor Gold, Cabinet Member for Communities and Finance highlighted the forecast out turn position and forecast overspend at quarter 3 of £3.959m. Members were advised where budgets are overspending work is taking place to identify mitigating actions to bring budgets back into line. This is in line with the forecast at quarter 2 which was circa £4m after allowing for the pay award which has now been paid and the utilisation of the utilities reserve.

Therefore, it is imperative that Departments continue to look to bring forward savings proposals and mitigating actions to reduce expenditure and bring spend back into line but recognise this is more difficult to do as year-end approaches.  However, if the creation of the Children’s £2m reserve is approved as part of the 2023/24 budget this will allow the release of the balance of the childrens reserve currently held which will reduce the year end forecast deficit by £2m.

Highest areas of overspend are:

One Commissioning Organisation £1.4m

This has reduced from the forecast of £1.92m at quarter 2. The forecast overspend is due to slippage on savings delivery and increased demand, partially offset by underspends due to staff vacancies. The mitigation of the £0.7m of Persona savings continue to be a challenge and requires further work.

Children’s Services £6.452m

This is an increase from the £3.5m reported at quarter 2 and assumes the use of £1.5m of the reserve created at the end of 21/22.  The balance was due to be retained to fund the family safeguarding model into next year.  However, this could be released in year subject to the approval to recreate this reserve next year.

£4.784m up from £2.7m at quarter 2 of the overspend is within social care and safeguarding due to increased numbers and complexity of packages and the heavy reliance on agency workers and additional staffing costs. 

Education and Inclusion is also forecast to overspend by £2.117 with circa £1.5m of this being within SEN transport.

Operations Department £3.47m

A slight rise from the £3.15m at quarter 2 and £1.788m up from £1.6m this is due to inflationary pressures on fuel and energy costs.    It should be noted that the utilities reserve is held separately but this is only £1.5m across all Council services.

Members were then invited to ask questions.

·         Councillor Birchmore asked for clarification on the item “Engineers including Parking” table referring to 7D - Operations Directorate

Donna Ball, Executive Director advised this information can be shared following the meeting.

·         Councillor Vernon questioned if this reduction of income is due to loosing income from the flexi hall being built.

Donna Ball Executive Director of Operations advised this is not in the budget it  ...  view the full minutes text for item 7