Agenda item

(CPT13)

Purpose:  To inform Members of the Council’s latest financial position.

Resolved that the report be noted.

This decision is not subject to call in as the report is to note only.

(Councillor David Rendel declared a personal interest in Agenda Item 7 by virtue of the fact that his mother resided in a NHS care home and health/social care costs might be raised as part of this item. As his interest was personal and not prejudicial he determined to take part in the debate and vote on the matter).

(Councillor Graham Jones declared a personal interest in Agenda Item 7 by virtue of the fact that his business was a contractor to the NHS and health/social care costs might be raised as part of this item. As his interest was personal and not prejudicial he determined to take part in the debate and vote on the matter).

(Councillor Alan Law declared a personal interest in Agenda Item 7 by virtue of the fact that he was a Governor of the Royal Berkshire NHS Foundation Trust and health/social care costs might be raised as part of this item. As his interest was personal and not prejudicial he determined to take part in the debate and vote on the matter).

(Councillor Joe Mooney declared a personal interest in Agenda Item 7 by virtue of the fact that he was a Governor of Berkshire Healthcare Foundation Trust and health/social care costs might be raised as part of this item. As his interest was personal and not prejudicial he determined to take part in the debate and vote on the matter).

The Executive considered a report (Agenda Item 7) concerning the latest financial position of the Council as at Quarter 2 of 2011/12. Councillor Keith Chopping in introducing the report stated that the forecast revenue overspend for the 2011/12 financial year was £443k. This was one third of one percent of the net budget. There were significant pressures in Adult Social Care and this service was currently forecasting an overspend of £1,705k. The other Council services, and respective directorates, were all forecasting close to, or below, a breakeven position for the end of the financial year. This, together with a recruitment freeze, had kept the forecast overspend to a minimum level.

This report would be considered by the Resource Management Working Group and Councillor Chopping confirmed that the Council was working diligently to address the overspend and was on track to deliver a balanced budget.

The Council’s Capital Programme had 18% of the remaining budget to be committed as at Month 6.

Councillor David Rendel noted that the level of overspend reported seemed to be moving up and down at a rapid rate and therefore it was difficult to ascertain whether the budgets had been well managed. However, Councillor Rendel stated that the report presented to the Executive was in respect of Month 6 figures and he felt that it would be helpful to have an update on the Month 7 or 8 position. Councillor Keith Chopping responded that he had been required to report the Month 6 position and that was what he had done.

Councillor Rendel asked what the level of reserves was expected to be as there appeared to be some inaccuracies in the figures. Councillor Chopping confirmed that there had been an error in the report and if the Council achieved a balanced budget at year end then the reserves would increase to £7.3m.

It was queried why the Discretionary Housing Payments (DHP) figure had not been budgeted for at the beginning of the year along with the non-achievement of income in Youth Services. Andy Walker confirmed that an assessment on the budget which would be required had been based on historical data and it was necessary at times to revisit assumptions which had been made. Andy Walker confirmed that he would provide a written answer for Councillor Rendel on the non-achievement of income in Youth Services.

It was noted that the Council was cutting back on the Connexions Service which Councillor Rendel was sorry to see as he felt that the service they provided in getting young people into work was particularly important. It was confirmed that the Connexions Service would be retained to deal with vulnerable young people, however, it was now the responsibility of schools to provide careers advice.

Councillor Rendel referred to page 40 of the agenda and noted that Older Persons and Physical Disability budgets were forecast to be £400k overspent as a result of changes in service delivery to meet the Day Centre closures and the increased use of Personal Budgets. Councillor Rendel thought that the Day Centre closures and the introduction of Personal Budgets had been expected to achieve savings rather than produce an overspend. Again Andy Walker explained that a number of assumptions had been made in respect of the closure of the Day Centres and the move to Personal Budgets. This issue was currently being revisited and estimates would need to be revised in that area. Councillor Rendel also queried whether the Council were going to take up the capitalisation option on redundancy costs. Councillor Chopping confirmed that the Council had not yet made a decision on whether or not it would take advantage of the capitalisation of redundancy costs. However, this option would only be possible for 20-25% of the costs.

Councillor Keith Woodhams asked how the savings on Home to School transport had been achieved. It was confirmed that demand for Home to School Transport had fallen and contracts had been renegotiated, particularly in the SEN area.

RESOLVED that the report be noted.

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

Other options considered: None.