Agenda item

This report presents the financial monitoring information for the Authority as a whole for the financial year 2016/17 to the end of July 2016.

The Cabinet agrees that:

1)  Strategic Directors should continue to work towards managing within budget in the current year for their respective service areas and develop an action plan of how this will be achieved, including not committing any unnecessary expenditure and stringent budgetary control.

2)  This year’s revenue budget position as shown in Appendix 2 is noted.

3)  The capital expenditure position for the Council in the financial year to the end of July and the year end projections detailed in Appendix 3 of this report are noted.

4)  The revenue virements listed for approval in Appendix 4(i) are agreed.

5)  The changes in the capital programme listed in Appendix 5(i) are noted.

Councillor Robin Moss asked the following questions: was the Council up to date with Sirona and other health providers within Adult Social Care and Health area; clarification on use of Adult Social Care and Health reserves; and, details on capital spending in improving services and revenue.

Councillor Paul Crossley asked about the progress on Bath Quays.

Councillor Charles Gerrish responded to questions from Councillors Moss and Crossley by saying that; the report would incorporate any external issues within Adult Social Care and Health budget; use of Adult Social Care and Health reserves was always within the budget; and, the Council was half way into the Bath Quays South project, with the residential part in waiting to be resolved within planning services.

Councillor Charles Gerrish said that the report was presented as part of the reporting of financial management and budgetary control required by the Council.  Councillor Gerrish also said that for revenue budgets which were forecast to be overspent, the Divisional Directors would be expected to seek compensating savings to try and bring budgets back to balance. The report had highlighted any significant areas of forecast over and under spends in revenue budgets and outlines the Council’s current revenue financial position for the 2016/17 financial year to the end of July 2016 by Cabinet Portfolio.  The current forecast outturn position is for an overspend of £2,219,000, which equates to 0.72% of gross budgeted spend (excluding Schools).  There had been an overspend forecast at this stage in each of the past four financial years.  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.  Close monitoring of the financial situation had provided information on new risks and pressures in service areas, and appropriate management actions were then identified and agreed to manage and mitigate those risks.

Councillor Gerrish moved the recommendations.

Councillor Paul Myers seconded the motion by saying that, like many others across the country, this Council would be facing a tough financial situation.  This year, in addition to the financial pressures prepared for, the Council would be also faced with a number of new challenges, such as increases in the cost of managing Housing Benefit and Welfare Reform.  Despite all these pressures, this Council remains committed to helping our most vulnerable residents.  The Cabinet would continue to monitor Council expenditure very closely, and if pressures continue into mid-year the Cabinet would take action to bring the budget back into line at the year-end.

RESOLVED (unanimously) 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 develop an action plan of how this will be achieved, including not committing any unnecessary expenditure and stringent 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 July 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.

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