Lead Member – Councillor D Minnery – Portfolio Holder for Finance

Report of the Head of Finance, Governance and Assurance [s151 Officer]

Contact: James Walton      Tel: 01743 258915

RESOLVED:

i)     That it be noted that at the end of Quarter 1 (30 June 2017), the full year revenue forecast is a potential overspend of £6.790m;

ii)    That the impact of this on the Council’s General Fund balance be considered.

iii)   That it be noted that a budget virement, as detailed in Appendix 2, that had taken place at period 3 to allocate pay award funding had not been distributed at budget setting, due to the value of the pay award not having been agreed at that time. 

The Portfolio Holder for Finance presented a report from the Head of Finance, Governance and Assurance [Section 151 Officer] setting out the projected revenue expenditure for the whole of 2018/19 as at Quarter 1, and set out the expenditure up to the end of period Quarter 1 for capital. He voiced disappointment in the projected overspend of £6.79M and stated that a thorough review of the base budget was needed alongside the work of the digital transformation.

A Member stated that he had grave concerns given the highest level of projected overspend being reported and the low level of Council reserves.  He queried whether the Council would be able to make ends meet and stated that the report heralded significant problems for the authority.  The Leader commented that the end of year figure would be improved and the Council would be able to balance its books over the next two to three years.

Another Member commented on the Council’s apparent inertia in making its savings and suggested that some of the savings identified were pure fantasy particularly those relating to Children’s Services; a service area that the public expected to be properly funded.  The Portfolio Holder for Children and Young People refuted the comments and drew attention to the realistic school transport savings and commented that pressures in other areas, particularly Looked After children, could not have been predicted.

The Leader stated that there were conversations to be had but gave assurances that Children’s Services and dealing with potholes in highways would not be neglected.  The Portfolio Holder for Finance commented on the need for accurate allocation of funding to ensure optimum value for money.

A Member commented on the ambitious returns anticipated from capital investments, digital transformation and the purchase of shopping centres.  The Leader was confident that targets could be met, and pressure would be maintained to keep to target although he accepted that sometimes delivery may take longer than first anticipated.  He concluded by re-iterating his earlier comments that the predicted overspend would be reduced.

RESOLVED:

i)     That it be noted that at the end of Quarter 1 (30 June 2017), the full year revenue forecast is a potential overspend of £6.790m;

ii)    That the impact of this on the Council’s General Fund balance be considered.

iii)   That it be noted that a budget virement, as detailed in Appendix 2, that had taken place at period 3 to allocate pay award funding had not been distributed at budget setting, due to the value of the pay award not having been agreed at that time.