Decision details

That Cabinet recognises a net improvement of £1.62m since the previous revenue budget forecast that results in a forecast over spend at month 9 of £7.53m.

That Cabinet note that this is driven primarily by incorporating the budget recovery plan into forecasts at month 9, along with substantial unbudgeted grant funding notified in respect of Children’s services that is significantly offset by further costs within the service.

That Cabinet note that the overall revenue budget outturn as currently forecast would need to be subsidised by £3.4m of capital receipts which are being used to fund identified eligible expenditure under the flexible use of capital receipts directive.

That Cabinet notes the update to the budget recovery plan as outlined in table 3. This projects that a draw on revenue reserves of £6.06m will now be required to ensure a balanced outturn position is achieved; representing an increase of £1.06m in the contribution anticipated to support the budget recovery plan from month 6.

That Cabinet recognise:

· the implication of drawing on the level of useable revenue reserves to this degree in 2022/23,

· the usage also being proposed to assist the 2023/24 budget,

· the trend of budgetary over-spends in high cost service areas, and wider economic uncertainty.

That Cabinet note the financial risk represented by the current volatile environment in Adult’s and Children’s services and require the respective Chief Officers and the Responsible Financial Officer to continue to closely monitor and manage operational and financial performance to ensure that all possible remedial action is taken to constrain cost and that this is reported to the Cabinet Portfolio Holder regularly

That Cabinet require the Responsible Financial Officer to make consideration of strengthening the reporting of budget forecasts and savings progress during 2023/24.

Cabinet considers the forecast capital outturn spend of £61.8m as outlined in appendix 1 that currently indicates a forecast over spend of £183k, noting the continuing difficulty in delivering capital projects to their allocated budget in the current challenging economic environment.

That Cabinet note the forecast 100% delivery of the budgeted mandated savings as detailed in appendix 2 and as approved as part of the budget set by full Council.

Cabinet notes the extent of forecast movements in Schools reserve usage contained in table 6, and appendices 1 & 3 which highlight the possibility of a further nine schools entering a deficit reserve position by the end of the financial year.