Agenda item

(CSP: MEC & MEC1)

Purpose: To inform Members of the latest financial performance of the Council.

Resolved that the latest financial performance of the Council 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) which informed Members of the latest financial performance of the Council.

At Quarter Three, the forecast revenue position was an overspend of £0.6m, which was an increase of £0.1m from Quarter Two. However, the overspend position had decreased significantly from Month 8 and this was as expected due to the recruitment freeze and a reduction in expenditure across the Council.

The Communities Directorate was forecasting an overspend of £0.9m at Quarter Three, which was a similar position to that at Quarter Two. The overspend was primarily the result of a £1.3m pressure within Children and Family Services, forecast overspends within Education of £0.4m and Prevention & Developing Community Resilience £0.1m, offset by savings within Adult Social Care and Care Commissioning, Housing & Safeguarding of £0.9m split approximately equally. The Directorate was looking to mitigate this forecast overspend position further and was reviewing all spending plans to see what could be delivered in the remainder of the financial year.

The Environment Directorate was forecasting an underspend of £305k compared to a £373k underspend at Quarter Two. This was primarily due to additional income from parking and development control and a saving in winter service costs. There had however been a reduction in income mainly due to the slippage of the planning application for the Sandleford Development and the associated fee.

The Resources Directorate was forecasting an overspend of £13k, compared to a £50k overspend at Quarter Two. There were a number of forecast changes by Service, mainly reductions in Customer Service and ICT offsetting increases within HR and Legal.

Of the £5.9m savings programme for 2015/16, £806k (14%) of initiatives were being reported as red (9% Q2), none were being reported as amber (1% Q2) and £5.1m (86%) green. The level of red savings was higher than in previous years which might be an indication that savings were getting harder to deliver year on year.

Councillor Alan Macro enquired whether the increase in the forecasted expenditure on agency staff in Children’s Services was a result of the failure of the Social Work Academy, commenting that use of agency staff was a concern due to the discontinuity it led to for service users. Councillor Lynne Doherty advised that the academy was working and expenditure on agency staff had decreased overall since quarter one, however there had been a slowdown in that decrease since the last quarter was reported. The Council was still working hard to improve recruitment and retention of social workers.

Councillor Macro also asked for the reason that expenditure on Discretionary Housing Payments had decreased. Councillor Hillary Cole advised that there was a lack of demand for the funds, despite making people aware of their availability.

Councillor Macro expressed that he was disappointed to learn that a delay in the implementation of the Youth Services restructure was causing further budgetary pressure. Councillor Doherty advised that full in-year savings could not be achieved due to redundancies and notice periods that were required.

Councillor Macro finally asked if the Council was doing enough to promote the Disabled Facilities Grant as there was a large underspend forecasted of £400k. Councillor Cole responded that the Council did what it could to promote the grant, including frontline staff making people aware of it, but there was a lack of demand. Councillor Croft congratulated the officers that coordinated the grant, explaining that a couple in his Ward had been able to stay in their home following adaptations to their bathroom. Councillor Croft urged all Members to remember the Disabled Facilities Grant when faced with enquiries from their residents and urged them to talk to the very helpful officers, to whom he gave his thanks.

Councillor Lee Dillon asked what works at Four Houses Corner were planned which justified a spend of £400k from the Disabled Facilities Grant. Councillor Cole replied that the detail was complex and she would provide a written answer.

Councillor Dillon enquired what pressures were leading to an overspend in the Special Educational Needs Home To School Transport budget. Councillor Dominic Boeck responded that there was more demand on the service and officers were looking for savings within the service to offset the spending.

Councillor Dillon asked what the increases in spending on Human Resources and Legal Services were. Councillor James Fredrickson advised that demand pressures were currently putting pressure on the budgets in those areas, which had always been subject to fluctuations but the increase in spending was very small in the context of the whole service budgets.

RESOLVED that latest financial position of the Council be noted.

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

Other options considered: None