To receive a verbal report on the key points arising from the Period 7 Financial Monitoring.

The Executive Director for Resources presented the verbal report which had been requested at the previous committee meeting. Members were advised that period 7 is up to the end of October and detailed figures are now appearing as per the agreed timetable.

It was stated that £51.4m of budget savings were due to be delivered over the financial year which have been split into savings which have been achieved and those forecast to be delivered by the end of the year; the latter being £40.87m and of this figure, £35.5m has been delivered and is in the bank. Overall there is still around £7m of savings yet to be achieved.

Members were reminded that in addition to the unachieved savings, there were demand pressures particularly within the People directorate where demand cost and mitigation works are to take place over the next 12-18 months, which is in the region of £25-26m. With this being taken into account, and with potential mitigation would leave a potential £7m overspend by the end of the financial year. The Executive Director of Resources was keen to stress that this figure should not be relied upon until the Period 7 work had been completed.

Dissatisfaction was expressed that monthly written updates were not being provided as previously stated. The Executive Director for Resources clarified that monthly written updates are provided to members and staff via email with detailed reports being provided at the end of every quarter as the Council does not have the resource to produce them monthly. Members were reminded that they had been advised at the last meeting that the information would not be available in time for today’s meeting and it had been agreed that a verbal update was to be provided.

It was further stated that written reports should be provided to allow the committee to carry out their role within scrutiny. The Executive Director for Resources confirmed that final figures for period 7 would be available by the end of the week and would be circulated to members.

Members sought reassurance regarding the demand mitigation measures. Their attention was drawn to the Q2 report where further detailed information had been made available with regards to the ways in which these costs could be addressed, such as the use of external funding and earmarked reserves. Members were advised that further information was also being collated by the Transformation task and finish group such who were looking at mitigation techniques and the impact they will have on figures. 

It was confirmed that the savings that had already been made were year on year savings unless otherwise stated and that further information was contained within the financial strategy which was adopted in March 2023.

Members were advised that the figures which had been provided to members were based on projections and information provided by different service areas. Managers provided monthly updates which were key in a sometimes changeable situation due to demand pressures. Members noted that services must continue to be delivered, but it was about the way in which these services were paid for, especially when the services affected the most vulnerable residents. It was stated that the team were always open and available to have discussions on any areas of concern members had.

It was suggested that a members briefing be held on demand management to ensure members are aware of the measures being considered and their impact. The Scrutiny Manager advised that the Assistant Director for Transformation had set up a Teams site for the task and finish group and that this may contain some of the information which could be used for a members briefing.

Thanks were given to the Executive Director for Resources, the Assistant Director of Finance & ICT and the finance team who are under incredible pressure to deliver.

RECOMMENDED:

That members noted the verbal update.