Issue - meetings

To receive the report of the Chief Executive and Director – Finance and Procurement (S151 Officer).

Resolved:

Cabinet approves:

a)    A new reserve for £0.680m is requested to facilitate early support and adviser activity for schools and families in future years.

Cabinet notes:

b)    the current revenue budget is forecast to overspend by £0.861m by the end of the financial year.

c)    the current forecast savings delivery performance for the year.

d)    the forecast overspend on the HRA of £1.042m and the impact on the HRA reserve.

e)    The forecast overspend against Dedicated Schools Grant (DSG) budgets of £14.942m and the impact on the cumulative DSG deficit.

f)     The transfer from earmarked reserves;

i.               £0.121m from the Leisure reserve to fund Virtual Studios

ii.             £0.075m from Libraries reserve to fund Library pods and new windows

iii.            £0.050m for Q2 Enforcement Activity from the Business Plan Priority reserve

iv.            The use of £0.300m of earmarked reserves to enable Adults and Children’s Services to undertake a feasibility study of potential sites for accommodation

Reason for Decision:

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 for the financial year 2024/25 as at quarter two (30 September 2024), including delivery of approved savings for the year

Cllr Nick Botterill, Cabinet Member for Finance, Development Management, and Strategic Planning, presented a report which provided details of the revenue budget monitoring forecast position for the second quarter of the financial year 2024/25. This was based on the position at the end of September 2024, updated on the known significant changes in October 2024. It also provided an update on the Medium-Term Financial Strategy (MTFS) and budget gap for future years.

Cllr Botterill reported a net overspend for the year of £0.861m, a significant improvement from the previous £8.284m reported in the previous quarter. He noted that the position would need continued focus to ensure mitigation action delivered the required result for the rest of the year, and he had a high level of confidence that a balanced budget would be achieved.

The Leader noted the latest budget position and additional pressures such as an increase in minimum wage and employer National Insurance contributions and welcomed the ongoing action to achieve a balanced budget.

Cllr Graham Wright, Chairman of the Overview and Scrutiny Management Committee reported that the Committee would be considering the report in detail at their meeting on 27 November 2024. He also reported that the Financial Planning Task group met to consider the report on 15 November 2024 and considered issues relating to reducing the projected overspend, managing risk, Public Health budget, SEND transport and children in care. He indicated that the Task Group will suggest some areas that select committees might want to investigate further.

Cllr Gavin Grant, Vice-Chairman of the Financial Planning Task Group, confirmed that the Task Group met on 15 November to consider the report. He thanked Cllr Botterill and officers for attending the meeting and providing clarification on a number of matters raised by the Task Group. He referred specifically to the pressures the Council may face on the Safety Valve agreement and the impact of the Dedicated Schools Grant (DSG) deficit. He noted the need for an action plan to be in place to bring this back into a balanced budget.

The Leader reported that the new Government has recognised the issues in the DSG and had been heavily lobbied by the County Council Network. Additional funding has been made available for the SEN budget and there was an appetite to reform SEN although this would be a difficult process. He acknowledged that the figures in the Safety Valve agreement were challenging, and highlighted work was ongoing in relation to EHCP’s and this area required further support. Cllr Laura Mayes, Deputy Leader reported that the EHCP assessment process is reviewed regularly and the key element for schools is inclusion, which more and more schools are embracing, especially as this will be included as part of future Ofsted judgements.

Cllr Ian Thorn welcomed the reduction in net overspend for the year to £0.861m and congratulated Cllr Botterill and officers for their input in achieving this figure for current quarter. He commented on the Adult Services budget forecast overspend of £6.299m  ...  view the full minutes text for item 125