Agenda item

The Committee received a budget monitoring update at Quarter 3 as set out in the agenda pack at pages 25-48 of the agenda pack. The Cabinet Member for Finance and Health introduced the report.

The Cabinet Member advised that there was an overall improving position from Quarter 2 to Quarter 3. Adult Social Services, Children’s Services and Temporary Accommodation remained the three areas of concern; with Adults reporting an improved position and Children’s reporting a significantly worsening position in Quarter 3. The increased overspend in Children’s Services was attributed to increased LAC numbers as well as the increasing costs of residential placements. The Cabinet Member highlighted that there had been some double counting involved in the Adult Social Services savings in the MTFS, this was previously reported to the Committee at the meeting of 29^th January. 

The following points were noted in response to the discussion of the report:

a.    In response to a question about confidence that the next round of savings would be met, the Cabinet Member acknowledged that no additional savings had been requested in Priority 1 in the latest MTFS in recognition that only 21% of pre-agreed savings being met. Instead, those savings had been rolled forward with a contingency built into the budget. The Cabinet Member advised that a different model of savings had been adopted in the MTFS for Priority 2, with a focus on demand reduction approaches. The Cabinet Member commented  that the budget position for the 2018/19 financial year was in a much improved from 2017/18.

b.    The Committee sought reassurances on how long reserves could be used to alleviate the structural overspend within the overall budget. In response,  the Cabinet Member advised that the latest MTFS contained a £15m General Fund reserve. In order to maintain that reserve, the Council would have to find around £7-8m in 2019/20 as well as implementing all of the savings identified for that financial year. The Committee noted that a budget resilience reserve had been created to protect the General Fund reserve.  The Cabinet Member advised that ultimately, the Council’s financial sustainability was dependent upon increasing Council Tax and Business Rates receipts.

c.    The Committee sought assurances around the significant underspend in the capital budget and queried what assurances could be given that slippages would not take place in further years. The Cabinet Member advised that the majority of significant slippages related to regeneration and development projects, which the Council had less control over than some of its other functions. The Cabinet Member commented that he was unable to give any assurances about slippages in further years and advised that this would be impacted by changes in the wider economic climate as well as the priorities of the incoming administration. 

d.    The Cabinet Member agreed to come back to the Committee with details of the procurement issues in appointing contractors to the disabled facilities grant framework. (Action: Cllr Arthur).

e.    The Cabinet Member and Deputy Section 151 Officer agreed to email the Chair of the Housing and Regeneration Panel with further information in relation to Scheme 429 Strategic Acquisitions.  (Action: Cllr Arthur & Jon Warlow).

f.     In relation to a query about the allocation of one-off versus permanent revenue and capital virements, the Deputy Section 151 Officer agreed to speak to the Chair of the Adults and Health Panel outside of the meeting. (Action: Jon Warlow).

g.    The Deputy Section 151 Officer suggested that the Committee could email him directly if they wished with any questions on future budget monitoring reports, in order to ensure he had the required information at future meetings.