Decision details

That Cabinet recognises the significant over spend forecast at Month 4 against the Authority’s revenue budget of £8.8m, which is primarily as a result of:

• £3.5m forecast over spend in Children’s services due to the increasing numbers of high cost placements and continued use of agency staff;

• £1.6m forecast over spend in Adults care services following a dramatic influx of clients requiring services post-pandemic, with some clients requiring more intense services due to delayed health care during the pandemic;

• £0.5m forecast over spend in Additional learning needs budgets due to the increasing cost and number of out of County placements;

• £1.3m forecast over spend in meeting the needs of the Homeless following national policy change initiatives and where inadequate funding has been provided;

• £0.5m forecast over spend in MonLife services as income levels are failing to meet targets in the areas of Leisure and Outdoor education;

• £2m forecast over spend in relation to the expected outcome of workforce pay negotiations which is expected to be significantly above the 3.5% budgeted.

Together with a number of other over and under spends summarised in paragraph 3.7 and detailed in appendix 1 to this report.

That Cabinet request that the Strategic leadership team immediately look to arrest the forecast over spend through a range of appropriate budget recovery measures as outlined in this report.

That Cabinet recognises the importance of a balanced outturn position being achieved for 2022/23, in that it safeguards the need to draw further upon any planned use of reserves and capital receipts and which will be required to assist in meeting the unprecedented financial challenges presenting over the medium term and where funding levels are expected to fall significantly short in meeting these challenges.

That Cabinet recognise the ongoing financial risks to the revenue budget of the outcome of ongoing pay negotiations, and the potential impact of the cost of living crisis on communities, and the associated financial impact this will have on the Council.

That Members note that the overall revenue budget continues to be subsidised by £2.65m of capital receipts which are being used to fund identified eligible expenditure under the flexible use of capital receipts directive.

That Members note the forecast 100% delivery of the budgeted mandated savings as detailed in appendix 2 and as approved by full Council previously.

Cabinet notes the extent of forecast movements in Schools reserve usage contained in table 4, and appendices 1 & 3 which highlight the possibility of a further six schools entering into a deficit reserve position by the end of the financial year.

Cabinet considers the forecast capital outturn spend of £85.6m as outlined in appendix 1 that currently indicates a forecast over spend of £209k, noting the continuing difficulty in delivering capital projects to their allocated budget in the current challenging economic environment.