Agenda item

To receive a report from the Chief Executive and Deputy Chief Executive.

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report which provided details of the revenue budget monitoring forecast for the third quarter of the financial year 2023/24, based on the position at the end of December 2023.

It was explained that the forecast revenue underspend for at the end of the third quarter had risen to £0.634m as a result of setting realistic income targets and control of expenditure. Overspend in People services had increased, mostly due to the continuing rise in the cost of care packages and SEND transport.

Cllr Botterill drew attention to the significant pressure on council finances arising from the dedicated schools grant (DSG) and increases in activity across high needs block budgets, driven by demand for statutory support for vulnerable children. Through work in the High Needs Sustainability Programme through aligned with the requirements of the Safety Valve programme, the council was further developing its DSG Management
Plan in order to reach a sustainable position, but this would require major work to cover forecast expenditure of over £97m.

The Leader stated that the Cabinet would continue to lobby government regarding the pressures arising from the high needs block.

Cllr Pip Ridout, Chairman of the Financial Planning Task Group, stated the report showed a food financial position, and that the Task Group continued to examine proposed savings and risks including staff pay, inflation and cost of living.

Cllr Gordon King welcomed the report making the council’s financial position and potential risks clear.

Cllr Martin Smith sought additional details relating to reported underspend in highways and transport. It was stated there was seasonal work, and others had invoices which would come in later, which would see the spending position regularise by the end of the financial year.

At the conclusion of discussion, it was then,

Resolved:

That Cabinet approves:

a)    The transfer of £0.068m from the Feasibility earmarked reserve to fund a feasibility study for the Super Bus Network;

b)   The transfer of £0.250m budget from the overachievement of income in Leisure operations to Libraries to address the £0.182m staffing overspend and increase the book fund by £0.068m;

c)    The transfer of £0.130m in 2023/24 from the Libraries and Leisure Programmes reserve to contribute to the Holiday Activity Food Programme;

d)   The gain in income Business Rates in 2023/24 of £8.666m be transferred into a new High Needs reserve;

e)    The transfer from the Collection Fund Volatility reserve, as follows:

                  i.        £6m to the General Fund reserve;

                ii.        £6m to the Insurance reserve;

               iii.        £2.572m to the High Needs Reserves.

f)     The transfer of £2.007m balance of the Latent Demand reserve to the Transformation reserve;

g)   The movement in DSG reserve as tabled in table 12 bringing the total DSG reserve to a £56.247m deficit position.

That Cabinet Notes:

h)   The current revenue budget is forecast to underspend by £0.634m by the end of the financial year; 

i)     The current forecast savings delivery performance for the year. 

Reason

To inform effective decision making and ensure sound financial management as part of the Councils overall control environment.

To inform Cabinet on the forecast revenue financial position of the Council as at quarter three (31 December 2023), including delivery of approved savings for the year.