Issue - meetings

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which outlined the forecast financial position of the Council at Quarter three 2023/24 based on the information known as at 31 December 2023. This report also provided an update on the work to mitigate and reduce the overspends and how this will be managed throughout the remainder of this financial year. The report set out the position for both revenue and capital and provides an analysis of the variances, both under and overspending.

Members discussed the paper and in response to questions it was noted that the Project Safety Valve (PSV) had been accepted by the Government but there were still targets for the Council to meet to stay on track. Councillor Lucy Smith advised that PSV discussions had been challenging but, now agreement had been reached, the Council could push forward with transformation plans to meet need while addressing financial controls. It was noted that PSV could come to a future scrutiny meeting for consideration.

With regards to a query regarding crossing patrols, it was noted that the overspend were most likely caused by staffing sickness and absence but specific data would be shared with Councillor Bernstein after the meeting. In response to a question regarding “SOBC” figures in the report, it was noted that this referred to a Strategic Outline Business Case and would relate to monies drawn down for feasibility studies and design work, but specific detail regarding the £1.83m figure could be shared with Councillor Mike Smith after the meeting.

Finally, it was noted that the £1.8m overspend in Operations budgets was a reflection of rising energy costs being absorbed by the directorate, and budget planning for the coming year was taking place later in the month starting from a zero budget position.

Decision:

Cabinet:

1.    Noted the improved forecast overspend of £9.462m, largely due to increased demand on services within the revenue budgets at Quarter two and the recovery action proposed;

2.    Noted the slight improvement in £18.555m deficit on the Dedicated Schools Grant (DSG) and the ongoing activity within the Project Safety Valve project (PSV); and

3.    Noted the increased delivery of savings to date of £16.384m with a forecast savings delivery of £20.646m within the challenging context of increased demand and inflationary cost increases. The intention is in the MTFS for 2024/25 that all savings will be delivered or replaced by something of an equal value by the departments.

Reasons for the decision:

To update Members on the Councils budgetary position and ensure the Council’s budgetary targets are achieved.

Other options considered and rejected:

None. This report is in accordance with the Council’s financial procedure regulations.