Agenda item

This report presents the financial monitoring information for the Authority as a whole for the financial year 2015/16 to the end of September 2015.

Councillor Andrew Furse expressed his concern that there had been significant overspend in Children and Community Services and underspend in Transport Services due to vacancy management. 

Councillor Dine Romero asked if the burden expected from the Care Act would come out of the revenue reserves.  Councillor Romero also questioned £0.5m in year savings from Public Health.

Councillor Charles Gerrish said that this report monitors how the Council has performed against the financial targets set in February 2015 through the Budget setting process. The Budget Management Scheme requires that the Cabinet consider the revenue and capital monitoring position four times per year.  Councillor Gerrish also said these were still early days to assess impact created by the Care Act.  The money put for this year revenue reserves couldbe used for Care Act issues in future years.  The issue of the Public Health would remain uncertain until the Government’s Spending Review is complete.  Children Services and Transport Services issues had been considered via joined up activities between services.

Councillor Charles Gerrish moved the recommendation.

Councillor Tim Warren seconded the motion. The report shows that the revenue outturn position was currently forecast with a slight underspend of £8,000 and it was pleasing to see the improvement over the last report which forecast an overspend of £835,000.  The Council’s financial position, along with its financial management arrangements and controls, were fundamental to continuing to plan and provide services in a managed way, particularly in light of the medium term financial challenge.  The revenue budget for 2015/16 includes delivery of £9.7m of savings and it was good to note completion during the period of some capital schemes including the Royal Victoria Skate Park, the Great Dell Walkway and a number of school improvements.

RESOLVED (unanimously) that the Cabinet agreed that:

1)  Strategic Directors should continue to work towards managing within budget in the current year for their respective service areas, and to manage below budget where possible by not committing unnecessary expenditure, through tight budgetary control.

2)  This year’s revenue budget position is noted.

3)  The capital expenditure position for the Council in the financial year to the end of September and the year-end projections are noted.

4)  The revenue virements listed for approval are agreed.

5)  The changes in the capital programme are noted.