Agenda item

This report presents the financial monitoring information for the Authority as a whole for the financial year 2018/19 to the end of December 2018.

Councillor Richard Samuel made an ad-hoc statement by expressing his disappointment in the report as he felt that there was even more overspend by the Council, and that it would be for the next administration to deal with this issue.

Councillor Charles Gerrish responded by saying that additional overspend was due to continued pressures on Children Services.  There were 168 children in care in March and 191 in December this year.  Councillor Gerrish also said that he would make no apology for spending for those in need.

Councillor Gerrish introduced the report by saying the Revenue budget outturn was currently forecast to be £3.2m over budget. This was an improvement of £0.9m compared to the £4.1m reported previously.  The areas over budget have continued to be mainly due to additional demand in Children’s Services £2.2m and a c£1m shortfall in income from Commercial Estate; in addition there has been some slippage in savings delivery which were part mitigated through service underspends and improved income performance.  The position within Children’s Services had in effect worsened as the figures shown include a transfer of £0.86m funding from Adult Social Care.  However, there were a number of mitigations that were currently being reviewed as well as a recruitment freeze and Managers have been requested to minimise spend wherever possible which would further  improve the year-end position.

The capital budget was currently showing an expected under budget position of £18.3m mainly due to slippage and re-phasing.

The Capital Programme now reflects the review that was completed in October 2018 and agreed as part of the previous budget monitoring report and £19.1m of projects were deferred or removed resulting in revenue saving of £0.6m.

The current forecast Council’s share of the year end Collection Fund position was:

•  Council Tax – Surplus of £0.719m (2017/18 Deficit £0.154m)

•  Business Rates – Deficit of £0.275m (2017/18 Deficit £1.473m)

Business rates collection has improved over the last quarter but still remains slightly lower than target and would continue to be monitored closely.

Council reserves would be required to mitigate the current position if the actions being put in place were not successful.  The current position would require use of £2.0m of the Budget Contingency Reserve (which was set up to mitigate budget risk) but the improved position would not require use of Un-earmarked Reserves.  Provision has been made within the 2019/20 budget to replenish the Budget Contingency Reserve.

Councillor Charles Gerrish moved the recommendations.

Councillor Vic Pritchard seconded the motion by saying that the figures were within the Budget.

Councillor Tim Warren said that the main pressures were within Children services due to an increase in number of children in care.

RESOLVED (unanimously) that the Cabinet agreed to:

1)  To note the 2018/19 forecast over budget of £3.21m (as at the end of December 2018) and the recovery plan actions outlined in Appendix 1;

2)  To note the mitigations that will be required shown in paragraph 5.6, if the over budget position cannot be reduced by the end of the financial year

3)  To note the capital year-end forecast detailed in paragraph 5.16 of this report;

4)  To note the revenue virements listed for information in Appendix 3(i);

5)  To note the changes in the capital programme including capital schemes that have been agreed for full approval under delegation listed in Appendix 4(i)

6)  To note the capital schemes listed in Annex 4(i) for removal / deferment from the current capital programme as approved at 18^th December Cabinet.