Lead Member – Councillor Gwilym Butler – Portfolio Holder for Finance and Corporate Resources

Report of James Walton – Executive Director of Resources – To Follow

RESOLVED:

That Members:

A.    Noted that at the end of Quarter 2 (30th September 2022), the full year revenue forecast is a potential overspend of between £4.138m and £17.506m, with best estimates indicating an overall overspend of £10.998m;

B.    Considered the detrimental impact of this on the Council’s General Fund balance and mitigating actions urgently required to avoid this.

The Portfolio Holder for Finance and Corporate Resources presented the report which provided an estimate of the Council’s year end position based on information over the period 1st April 2022 to 30th September 2022. Members noted that the projected financial position at Quarter 2 is still demonstrating a challenging position with ongoing cost pressures in Adult Social Care and Children’s Social Care alongside the impact of inflation.

Concerns were raised regarding the level of reserves and that savings previously identified were not being achieved in the Place Directorate. A request was made for further information to be provided on overspends and unachieved savings in the Place Directorate and it was confirmed the request would be passed to the Executive Director of Place.

Further concerns were raised that overspend may not be entirely linked to inflation as it was felt a large amount of the overspend related to adult and children’s care where savings had been reported due to a reduction in staffing.

Queries on reserves, where they were held and how they were used to balance service areas were received. The Executive Director of Resources gave an update on the level of reserves and how they can be used. He advised members that the team were seeking longer term solutions to address pressures being faced.

Members were also concerned regarding the number of vacancies including apprentices. Members were advised that, on speaking with businesses, this was a national issue; however WM Employers were looking at ways to make apprenticeships more appealing.

RESOLVED:

That Members:

A.    Noted that at the end of Quarter 2 (30th September 2022), the full year revenue forecast is a potential overspend of between £4.138m and £17.506m, with best estimates indicating an overall overspend of £10.998m;

B.    Considered the detrimental impact of this on the Council’s General Fund balance and mitigating actions urgently required to avoid this.