Decision details

That Cabinet note the overall revenue budget deficit forecast at month 6 of £284k, a deterioration of £160k since the previous forecast.

That Cabinet note the forecast 87% delivery of the £12.3m budgeted service savings for the year, resulting in a £1.6m deficit that is needing to be managed as part of the overall revenue budget. The overall level of budgeted savings includes the additional in-year budget recovery action of £2.1m as recommended by Cabinet as part of the Month 5 report.

That Cabinet note the ongoing budgetary risks that remain inbuilt into the month 6 forecast, namely;

Ø  The volatility of demand for high-cost services, particularly in Adults & Childrens Social Care and Homelessness;

Ø  The risk of further non-delivery of the £12.3m of budgeted savings targets;

Ø  The severely limited reserve cover available to the Council;

Ø  The continued pressure on both UK and Welsh Government budgets, and wider challenging economic environment;

Ø  The potential shortfall in funding of the increased responsibilities transferred to Councils, particularly within Universal Free School Meals and Homelessness that have the potential to further impact forecasts if a suitable funding resolution is not achieved.

That Cabinet note that the negotiation of national pay agreements for Local Government employees has concluded, and that the outcome is in line with previous budget forecasts.

That Cabinet note the forecast draw on schools delegated balances as outlined in Appendix 1 of this report of £3.76m, with school balances forecast to reduce to £494k by the end of the financial year and with fifteen schools now forecast to be in a deficit balance.

That Cabinet note a forecast Capital budget underspend of £2.19m, alongside an indication of slippage in capital schemes of £9.2m. The £2.19m underspend is in relation to the Asset Investment Fund budget that is funded by borrowing and does not therefore represent a usable surplus budget.

That Cabinet approve the capital budget revisions as outlined in Appendix 3 as a result of additional unbudgeted grant allocations notified since the beginning of the year, and a required draw on Section 106 major maintenance sums to fund required works.