Agenda item

RESOLVED: That the report be noted.

3.1          Selwyn Thompson, (Budgets and Efficiencies Group Manager) spoke to the Committee and highlighted the following key points:

·         The Financial forecast to end of January 2015 was showing a projected £9.1 million overspend on the Council’s revenue budget. The projections excluded the costs of staff redundancy from the recent voluntary severance scheme.

·         The current projection represented a reduction of £0.4 million compared to the end of year projection forecast in December.

·         The most significant cost pressure was the projected overspend of £8.5 million in Children and Young People’s Services.

·         Within this area, clients with “no recourse to public funds” created a significant cost pressure as did the placement budget for Looked After Children and the Children Leaving Care Budget.

·         The Community Services Directorate was forecasting an underspend of 1.3 million. Within this there was an overspend on adult services but underspends within the public health and cultural and community development services sections

·         Customer Services Directorate was showing a £3.1 million projected overspend and the costs arising from temporary Bed and Breakfast accommodation was a significant and increasing pressure.

·         Resources and Regeneration Directorate had shown a consistent underspend of £800,000. Regeneration and Asset Management remained the main spending pressure in this department.  

·         The Housing Revenue Account was projecting a surplus of £0.8 million.

·         The Collection fund for council tax collected was 1.1% lower than previously profiled but the team were focused on achieving the overall target of 96% by year end.

·         As of 31^st January 2015, capital expenditure stood at 62% of the revised annual budget.

3.2           In response to questions from the Committee, officers provided the following information:

·         The financial pressures were likely to increase year on year and concerns were raised regarding future financial reconciliation. The Council would continue to work hard to reduce the funding pressures from those with “No Recourse to Public Funds” but the solutions were predicted to take time to materialise. A reduction in spend of £3.0 million by the end of the next financial year was predicted.

·         The introduction of the Corporate Expenditure Panel (CEP) had had a positive impact on the budget management culture within the Council and in many instances budget holders were no longer making requests for spending approvals. The impact, however, could not be measured in terms of reduced spend.

·         The homelessness prevention work, including discharge into the private rental sector and the work and to increase supply of properties would reduce the costs associated with temporary Bed and Breakfast accommodation but the savings would also take time to come through.

·         The reduction in expenditure in Community Services was beneficial to the Council overall as it reduced the overall Council budget overspend.

·         The commissioning contract for domiciliary care was due for renewal in 2015. At that time the inclusion of travel time as well as the London Living Wage provision would be explicit to avoid ambiguity.

·         Pressures within the Dedicated Schools Grant area were being addressed in the current financial year by using the underspend from the uptake of nursery places for 2 year olds. The Schools Forum had agreed to reduce the level of top up funding for pupils with Special Educational Needs in 2015/16 in order to eliminate the projected overspend of £2.1 million for that financial year.

3.3         RESOLVED: That the report be noted.