Issue - meetings

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Finance and Health.] Cabinet to consider the 2016/17 Quarter 1 financial position; including Revenue, Capital, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG).

The Cabinet Member for Finance and Health introduced the report which set out the projected financial position of the Council for 2016/17 as at quarter 1[April-June 2016]. The report covered significant operating and capital revenue variances and had been compiled on a forecast full year basis.

The Cabinet Member for Finance and Health drew attention to the significant budget pressures in the demand led areas of Adults, Children and Temporary Accommodation which were leading to a current forecast of £28m budget over spend for the Council. He continued to outline the ongoing measures to bring down the overspend including the work at the corporate centre to reduce spend in the organisation and further  highlighted the necessity to keep up the pace with the transformational activities in these demand led areas.

Actions to bring down spend would involve: managing demand at the ‘front door’ of Adult Services, reviewing care packages, continuing to focus on homelessness prevention, by  increasing the number of AST’s[ Assured Tenancies] including building modular housing. These types of interventions would help to reduce overspend in short, medium and long term.

Cabinet noted the difficult financial picture for all local authorities and the importance of focusing on reducing cost in the centre whilst also focusing on transformation activities for the demand led areas.

In response to questions from Cllr Engert, the Cabinet Member for Finance and Health set out the following:

·         The budget overspend figure was, as outlined, in the attached report.

·         Councillor Engert would receive a written response setting out the planned savings to be made from the reduction of agency and interim staff.

·         The envisaged revenue savings to be made in energy costs from adding LED bulbs to street lights had not been achieved as the implementation had not been completed at the required pace to make the saving.

RESOLVED

1.    That the Council’s 2016/17 Quarter 1 financial position in respect of revenue and capital expenditure be noted.

2.    To note the risks and mitigating actions identified in this report in the context of the Council’s on-going budget management responsibilities;

3.    To endorse the measures in place to reduce the overspend in service areas; and

4.    To approve the virements over £250k in Table 1 - Appendix 1 and note other virements;

Reasons for decision

A strong financial management framework, including oversight by Members and senior management, is an essential part of delivering the Council’s priorities and statutory duties.

Alternative options considered

This was the 2016/17 Quarter 1 Financial Report as such there were no alternative options.