[Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]
This will report will provide an update on the Quarter 1 budget monitoring and will seek approval for any budget changes required to respond to the changing financial scenario and the delivery of the MTFS.
Minutes:
The Cabinet Member for Finance and Strategic Regeneration introduced the report which covered the Council’s financial position at Quarter 1 (Period 3) of the 2020/21 financial year, include General Fund Revenue, Capital, Housing Revenue Account and Dedicated Schools Grant budgets. The Cabinet Member drew the Cabinet’s attention particularly to paragraphs 1.3, 1.4, 2.2, 4.1, 5.1, 6.11, 7, 9 and 10. He added that it was critical to maintain strong financial management in the current economic climate and pandemic.
The Cabinet Member highlighted the continued and increasing pressure that the Council were facing from underfunding of the High Needs Block of the DSG since the Government’s expansion of the age for Education, Health and Care Plan (EHCP) eligibility. The Council, like many other authorities across the country, had been left in a position where, despite best efforts, were unable to meet the needs of these young people within the budget that had been allocated. The Cabinet Member underlined that the additional funds provided for 2020/21 to date in no way went far enough and do not provide the sustainable solution that these young people and their families needed as was evidenced by the forecast £4.5m overspend included in the report.
The outcome of the Government’s SEND review was still waiting publication and in the interim the Cabinet Member emphasised the need for the Council to continue to vocally lobby for additional resources.
RESOLVED
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. This is made more critically important than ever as a result of the severe financial duress placed on the Council by the Covid-19 crisis.
COVID-19 affects everything local authorities do – as community leaders, public health authorities, education authorities, employers, partners, and service deliverers. The Leader, Cabinet and its officers continue to need to focus on responding to the crisis while ensuring normal critical services are provided.
Alternative Options Considered
The report of the management of the Council’s financial resources is a key part of the role of the Director of Finance (Section 151 Officer) in helping members to exercise their role and no other options have therefore been considered.
Supporting documents: