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Agenda item

2020/21 Revenue Financial Performance Quarter Two (EX3908)

Purpose: To report on the in-year financial performance of the Council’s revenue budgets.

Decision:

Resolved that the Quarter Two forecast of a £1.5m under spend be noted.

 

This decision is not subject to call in as:

 

·      Report is to note only

 

therefore it will be implemented immediately.

Minutes:

The Executive considered a report (Agenda Item 12) concerning the in-year financial performance of the Council’s revenue budgets as at Quarter Two of 2020/21.

The Quarter Two forecast was an underspend of £1.5m which was 1.1% of the Council’s 2020/21 net revenue budget of £131m. The two main services contributing to the underspend were Adult Social Care and Children & Family Services.

Councillor Ross Mackinnon apologised that the table on page 255 of the agenda under paragraph 5.2 had errors in the second column with the figures not being updated from Quarter One and he would ensure that it was corrected and circulated the following morning. However, the over and under spend figures for all directorates and the total were correct. The forecast under spend position at Quarter One had been £600k so it was noted that the forecast under spend had increased by around £900k. This was almost all from the People Directorate and in particular Adult Social Care. Deaths had been higher than the previous year although it was expected that there would be an increase in demand on the service in the second half of the year from clients in step down placements requiring longer term services. Children & Family Services had continued to see a fall in clients requiring placements and a fall in the number of Unaccompanied Asylum Seeking children which was not surprising given the reduction in route transport. Education were forecasting a £200k under spend arising from savings from Home to School Transport, external funding being received and successful trading income.

The total under spend forecast will inform the budget setting process along with decisions on Council Tax and the Adult Social Care precept for 2021/22. It was also noted that the under spend in the current year would not automatically transfer to the following year but the impact on next year’s budget would be considered. Covid funding from Government and the impact of the recently announced Local Government Settlement would also be considered.

Councillor Graham Bridgman referred to the under spend in Adult Social Care and the fact that the CCG had picked up the bill for hospital discharges for a period of about six months. However, that period of time was coming to an end and there were a number of individuals who were in step down beds having come out of hospital. This was literally a holding area for a decision to be made about their long term care with the possibility of them coming on to the authority’s books for long term service provision. Therefore the Adult Social Care model showed quite a steep rise in demand in the long term service provision. Consequently, there were other factors in the Adult Social Care number which would work their way through going forward.

Councillor Jeff Brooks noted that there had been a lot of movement in the forecast over the past 13 weeks. He understood that there was a considerable amount of volatility but he hoped that Officers would work on getting the forecasts to be tightr in their movement quarter on quarter. He also stated that there would be a risk reserve for Adult Social Care and if that was not required what sum would that potentially release into the under spend position.

Councillor Ross Mackinnon responded that Councillor Brooks was right about the numbers it was a big jump from quarter to quarter. In respect of the modelling Officers were continually trying to improve that and he felt that it was in a good place. This had been an unusual year and there had been diverging movement from the budget. Councillor Mackinnon also confirmed that he was part of the Budget Board discussions where the ASC model was closely monitored. In respect of the risk reserve Councillor Mackinnon stated that he was not in a position to discuss that at present and the decision would be made closer to the budget setting process. Councillor Brooks asked what the risk reserve figure was as he thought it was around £900k. Councillor Mackinnon confirmed that the figure was £850k. .

RESOLVED that the Quarter Two forecast of a £1.5m under spend be noted.

Other options considered:

None considered.

Supporting documents: