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 for 2017/18.

Councillor Graham Jones reported that the current financial forecast was an overspend of £870k against a net revenue budget of £117.4m. This overspend was solely attributable to the Communities Directorate (Adult Social Care). However, Councillor Graham Jones added that this was a very early stage of the financial year and the financial situation was likely to change during the course of 2017/18. The Adult Social Care budget was demand led but a number of remedial actions were being implemented to improve upon the position.

Councillor Graham Jones continued by stating that the Council had performed well in terms of managing its budget over a number of years despite the significant pressures that had been felt.

Councillor Rick Jones explained that pressures in Adult Social Care had proved considerably greater than originally budgeted. Contributing factors included inflationary cost increases and a greater level of complexity of clients needs, in particular clients with learning disabilities.

Councillor Rick Jones continued by reiterating that the service was working to reduce the overspend by year end, this included ways to best manage demand for services and a joint funding approach with health colleagues.

Councillor Lee Dillon gave thanks for these details. He referred to the point made in the report that Adult Social Care pressures were being reduced through one-off underspends against non-commissioning budgets and Councillor Dillon asked for further detail on these.

In response, Councillor Rick Jones explained that this formed part of the mitigation measures to improve the forecast. The non-commissioning budgets related to Continuing Healthcare funding, S106 monies and negotiations with acute hospitals around reducing costs associated with Delayed Transfers of Care (DToC).

Councillor Dillon noted that a payment from Kennet School for Kennet Leisure Centre of £43k was still in dispute and this pressure had been carried forward year on year since Kennet School became an Academy. He requested an update on resolving this dispute.

Councillor Hilary Cole acknowledged that this had been a frustrating long term issue. Officers continued to progress payment with the school, but it had proved a difficult issue to resolve. The fact that the use of the leisure centre was shared between school and public use had complicated the issue and added to delays in determining responsibility for costs.

However, the Council remained determined to recoup this cost and Officers were working hard to resolve the dispute.

Councillor Dillon further noted that the redevelopment of the London Road Industrial Estate (LRIE) had been delayed and the project was expected to restart later in 2017/18. He queried when work was expected to start and whether any in-year savings had been identified as a result of the delay.

Nick Carter explained that timescales for the LRIE could not be confirmed until the potential appeal against last year’s legal judgement on the scheme had been resolved and advice on this was awaited from the courts. The capital funding for the project would be carried forward in full and utilised once the redevelopment was able to commence.

RESOLVED that the latest financial performance of the Council be noted.

Other options considered: n/a – factual report for information.