Agenda item

Resolved that the latest financial performance of the Council as at Quarter 3 of 2013/14 be noted.

This decision is not subject to call in as:

·      Report is to note only

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 6) concerning the latest financial performance of the Council as at Quarter 3.

Councillor Alan Law confirmed that the forecast revenue underspend for the 2013/14 financial year was £183k which was a movement of £444k from Quarter 2 when an overspend of £261k was reported.

In the Communities Directorate, Children’s Services were forecasting an overspend of £230k as a result of the level of Looked After Children and supported children. In order to address the increased projected overspend, expenditure across Children’s non-placement budgets and all Communities Services’ budgets was being reprofiled. Education Services was forecasting an underspend of £51k at year end which was an increase of £21k. This had been achieved through reductions in costs associated with Disabled Children’s Placements.

In Environment, Highways and Transport were forecasting a pressure of £290k which was mainly due to an increased forecast in the Emergencies budget as a result of the recent storms and flooding and this figure would only increase given the continuing problems with flooding.

In the Resources Directorate, Strategic Support were now forecasting an underspend position of £136k which was due to Public Health being able to fund the Domestic Abuse Co-ordinator post along with contributions towards Shopmobility and Relate all of which were delivering Public Health outcomes in the current year. Increased Land Charges income had continued to be reported as had unexpected income from Government for things such as IER and Community Right to Bid.

The Capital Programme for 2013/14 was 85% committed as at the end of December 2013. £0.8m of the Capital Programme was now expected to be re-profiled into 2014/15.

The report indicated that financial performance had been well managed despite a challenging economic climate.

Councillor Jeff Brooks noted that the underspend position continued to grow and he asked if any thought had been given as to how that underspend would be utilised in the final budget preparations. Councillor Law confirmed that a detailed answer to that question would be provided at the Council meeting on 4^th March 2014.

Councillor Royce Longton referred to paragraph 1.8 in Appendix 2b. He noted that the Culture and Environmental Protection Service was reporting an underspend of £204k despite pressures in Adventure Dolphin and a payment from Kennet School which had not been received. He asked how that underspend had been achieved and whether there had been service cuts as a consequence. Councillor Hilary Cole confirmed that she did not have that information to hand and would provide a written response.

RESOLVED that the report be noted.

Reason for the decision: To ensure that Members are fully aware of the financial position for the Council.

Other options considered: None.