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

Report of James Walton, Executive Director of Resources

RESOLVED:

A.           To note that at the end of Quarter 1 (30th June 2023), the expected level of savings delivery is £34.3m, representing more than the sum total of the last 3 years, and a level of delivery equal to that in recent years.  

B.           That savings not yet confirmed amount to £17m. 

C.          That demand-led services are forecasting significant overspending of £20.5m in the year, which is likely to continue into the coming year.  

D.          The result of those points (A-C above) is a current forecast of overspend of £37.590m 

E.           That it is assumed for planning purposes that  

a.           65% of the remaining savings will be delivered (total: £11.9m) and  

b.           short-term funding will be identified to enable sustainable demand management approaches to be implemented in social care services (total: £20.5m), and that necessary plans are prepared to enable this.  

F.           The resulting forecast at quarter 1 is therefore a likely overall overspend of £5.2m once key management actions are implemented. This will leave the General Fund balance at £21.8m, within the target range of £15m-£30m.

In presenting the Financial Monitoring report, the Portfolio Holder for Finance and Corporate Support said that performance in Quarter 1 had exceeded expectations and he thanked the finance team and officers for tirelessly working to achieve this result.  He acknowledged that there remained much to do, but reiterated that there was no indication of any imminent financial crisis.  He reported on the emergency planning exercises; stress testing of the plans and identified contingency arrangements in the event of unforeseen challenges, or under delivery on known challenges.

Responding to questions regarding outstanding savings required, what was meant by  ‘demand management’ and for reassurance and further detail moving forward,  he encouraged members to attend meetings of the newly established scrutiny task and finish groups which would be considering this information in detail.  Reports for periods 4, 5 and 6  would also be with members as soon as they were ready, ahead of the report on Quarter 2.

Referencing other Councils that had recently issued Section 114 notices, the Portfolio Holder and Leader reiterated that although difficult decisions lay ahead the Shropshire Plan was firmly established and would deliver the savings needed. 

RESOLVED:

A.    To note that at the end of Quarter 1 (30th June 2023), the expected level of savings delivery is £34.3m, representing more than the sum total of the last 3 years, and a level of delivery equal to that in recent years.  

B.              That savings not yet confirmed amount to £17m. 

C.              That demand-led services are forecasting significant overspending of £20.5m in the year, which is likely to continue into the coming year.  

D.              The result of those points (A-C above) is a current forecast of overspend of £37.590m 

E.              That it is assumed for planning purposes that  

a.               65% of the remaining savings will be delivered (total: £11.9m) and  

b.               short-term funding will be identified to enable sustainable demand management approaches to be implemented in social care services (total: £20.5m), and that necessary plans are prepared to enable this.  

F.              The resulting forecast at quarter 1 is therefore a likely overall overspend of £5.2m once key management actions are implemented. This will leave the General Fund balance at £21.8m, within the target range of £15m-£30m.