Issue - meetings

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Finance and Health.]Monitoring report on forecast spend against budget and consideration of any proposed budget virements.

The Cabinet Member for Finance and Health introduced the report which set out the 2016/17 Period 6 financial position; including Revenue, Capital, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG).

The Cabinet Member outlined the significant overspend of £22m in the budget with an improved position of £800k which was positive. However, demand led areas had significant pressures.

Although there was good progress in delivering savings the Council had seen a growth in demand and also challenges to the supply of temporary accommodation, outstripping capacity to keep the budget in line.

The report outlined the corporate actions being undertaken to reduce spend and the significant work underway to bring overspend down in demand areas.

In response to Cllr Engert’s questions the following information was noted:

·         Likely future consideration of re-profiling of the budget, but underlying principles   that had been agreed in the Medium Term Financial Plan in February 2015 such as focusing on growth and regeneration together with supporting independence, prevention and community resilience remain. These principals underpinned the proposed savings plans and remained significant to a future sustainable budget and should be continued even with the parameters change being seen.

·         Critical to provide support to all officers, including senior officers, to develop and ensure they have a capacity in a time of substantial change. The Chief Executive advised that the Corporate Leadership Group comprised of 26 senior managers and the senior leadership team members. They had been part of ongoing development  programme  which  had offered individual  coaching and development over the past 18 months .The Chief Executive was happy to share details of the programme with the outcomes and  benefits to the organisation with Councillor Engert.

RESOLVED

1.    To note the report and the Council’s 2016/17 Period 6 financial position in respect of revenue and capital expenditure;

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

3.    To approve an increase in the capital budgets of £6.3m as set out in section 6.8; and

4.    To approve the list of virements set out in Appendix1.

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 is the 2016/17 Period 6 Financial Report.  As such, there are no alternative options.