Agenda item

To receive the Financial Year 2023/2024 - Quarter One Revenue Budget Monitoring report of the Chief Executive, considered by Cabinet on 12 September 2023 as well as a report from the Financial Planning Task Group, following its meeting on 8 September 2023.

The Chairman noted that in the agenda was a report which set out the first quarterly revenue budget monitoring forecast for the financial year 2023/24 based on the position at the end of June 2023. It also provided an update on the Medium-Term Financial Strategy (MTFS) and budget gap for the financial year 2024/25 and beyond.

It was noted that the report had been considered by Financial Planning Task Group on 8 September and Cabinet on 12 September. A summary of the Task Group’s discussions was provided in a report in the agenda pack.

Cllr Nick Botterill, Cabinet Member for Finance, Development Control and Strategic Planning stated that overall, the current figures were good, with a deficit of around £311,000 for this financial year and 99.94% expenditure on budget; due to long term plans in place for the highest spending areas to produce positive results. It was acknowledged that though the position was positive, there were still risks, such as if several high needs children were to present themselves. It was however stated that the current situation should be celebrated in comparison to that of other councils.

The following comments were made by Andy Brown, Deputy Chief Executive and Section 151 Officer, who stated that as per the commentary within the report, the forecast was positive for Q1, however there was an awareness that it wouldn’t take much to take this off track, with warning signs such as inflation and the pay award higher than what was budgeted for, though action had been taken towards this. It was further outlined that action would have to be taken around the Dedicated Schools Grant as an annual deficit of £10million could accumulatively grow. It was additionally noted that, savings delivery was progressing well and into a high 80% level when compared to previously lower years.

Cllr Pip Ridout, Chair of the Financial Planning Task Group (FPTG), stated that this was a good news story and that the Council having been very prudent over past years was now in a stable position. Reference was drawn to the summary forecast of Q1, which drew attention to identified highs and lows, with a need for Select Committee Chairs to further monitor operational output against financial.

The following comments were received by Members of the Committee, including that the budget was in a positive position, however risks did exist such as the potential arrival of asylum seekers. Reference as also drawn to Safety Valve as an example of the need to be watchful of the budget. Emphasis was placed on the need to be aware of risks and for Select Committee Chairmen to look at ways to identify savings to ensure that the budget remained in in a positive place.

Reference was drawn to page 22 of the report, which highlighted that Cabinet was requested to approve a draw from reserves to fund activity, including £0.772mill towards Ukrainian Education Funding. It was clarified during the meeting that this money was going to be used solely for Ukrainian pupils in Wiltshire Schools.

Questions were also asked in relation to the savings table 14 and whether there were proposals in place to realise savings in year one, rather than in years two and three. It was discussed that where some areas were identified as being red, some of these issues related to timing and couldn’t be delivered this year but would rather be in the future. However, if savings could be made now then this would be conducted; for example, the proposed VAT on leisure following the HRMC tribunal case. Further information was also provided in relation to how the data had been presented for forecasting purposes and that overall, comfort could be taken from the savings table due to being in a better position than was hoped for at this stage.

Attention was drawn to the Living and Aging Well projected overspend and considering the pressures within this sector, whether savings could realistically be delivered. In response, the officer, stressed the importance of working with the market and that though there were pressures to manage providers and market risk, it wouldn’t mean savings would be unlikely to be achieved. It was also suggested that within the adult social care, a problem faced was the lack of workforce, with it suggested that the Council was working on schemes or going to education settings to encourage people to come into the sector. It was also noted that work was being conducted to identify how the Market Sustainability Improvement Fund could be allocated.

At the conclusion of discussion, it was,

Resolved:

The Overview and Scrutiny Management Committee agreed to note:

1.    The current revenue budget is forecast to overspend by £0.311m by the end of the financial year;

2.    The current forecast savings delivery performance for the year;

3.    The updated MTFS position and revised gap of £7.344m by 2025/26; and

4.    The report of the Financial Planning Task Group.