Agenda item

Quarterly Budget Monitoring Report

[Report of the Interim Chief Finance Officer. To be introduced by the Cabinet Member for  Finance and Health.] Cabinet will  be provided with an update on the budget performance for the year to date and likely financial outturn position for 2017/18.


The Cabinet Member for Finance and Health introduced the report which set out the 2017/18 quarter 2 financial position for the Council; including the Revenue, Capital, Housing Revenue Account(HRA) and Dedicated Schools Grant(DSG) Budgets.


The Cabinet Member for Finance and Health summarised the quarter 2 position as follows:

·         An overspend of £6.6m General Fund

·         An underspend £200k on the HRA [ Housing Revenue Account]

·         Priority 1 budget position as a significant improvement with a fall in projected overspend of £1m

·         Priority 2 has a worsening budget position of £2m in the budget position which could lead to an overspend of up to £3,4m for this financial year.

·         Services projecting that 49% of 2017/18 of savings will be achieved – This was a worsening from 67% position reported in quarter 1 but still in line with assessment for the MTFS which had 67% of savings rated as amber or red.



In response to questions from Councillor Morris the following information was noted:


  • Cabinet Member for Children and Families provided assurance that the Children’s Service always ensure the safety of children is the priority when making or putting forward savings.


  • In respect of reported Children’s Centre under -occupancy, the Cabinet Member underlined that this was in reference to vacancies for childcare rather than use of the Children Centre by the community. This information was provided at the recent Children’s Scrutiny Panel and could be sent through to Councillor Morris. The Children’s service was working with Children’s centres to ensure that as many children that were eligible, are taking up the child care places.


  • The Priority X overspend, included the cost of corporate project management provision to Osborne Grove and section 7.27 explained the legacy issues around the under provision for staff salaries


  • In relation to the delivery of savings, officers would still need to assess risk around the savings but the finance team will work on having a greater grip to enable the delivery of savings and guard against double counting. The savings which were not achieved would be transferred to the 18/19 budget year and there will be consideration of alternative savings to replace some savings which were not deliverable.







1.    To note the Q2 forecast revenue outturn for the General Fund of £6.6m overspend, including corporate items. (Section 5, Table 1 and Appendix 1);


2.    To note the net HRA forecast position of £0.2m underspend. (Section 5, Table 2 and Appendix 2);



3.    To note the latest capital position with forecast capital expenditure of £101.59m in 2017/18. (Section 7, Table 4);


4.    To note the risks and mitigating actions identified in the report in the context of the Council’s on-going budget management responsibilities/savings, as detailed in Appendices 3 (a) (g);



5.    To note the measures in place to reduce overspend in service areas; and


6.    To approve and note the budget virements set out in Appendix 4 of this report.

Reason 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 2017/18 Quarter 1 budget monitoring financial report. As such, there are no alternative options.


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