Issue - meetings

The Board considered a report of the Operational Director, Finance, which summarised the overall revenue and capital spending position at 30 June 2019.

            In overall terms, the revenue expenditure was £1.247m above the budget profile. It was reported that based on current spend patterns, projections showed that the Council would have a year-end outturn overspend position of £6.772m if no corrective action were taken. There were a number of departments where net overspend for the quarter exceeded the budget profile. The main budget pressure continued to be within the Children and Families Department, with a forecast outturn overspend in the region of £4.7m.

            Council approved budget savings proposals at its meeting in March 2019, for the current year’s budget. It was reported that the value of permanent savings was £4.432m, of which a number of savings proposals totalling £1.754m remained unallocated to specific budgets. The delay in implementation impacted detrimentally on the forecast position as set out in Appendix 1; Table A in the report listed the savings proposals still to be implemented.

            The Capital Programme had been revised to reflect a number of changes in spending profiles as schemes had developed; a list of those schemes  that had been revised were set out in the report. Capital spending at 30 June 2019 totalled £6.4m which was 98% of the planned spending at this stage. It was noted that this represented 17.3% of the total Capital Programme of £36.8m.

            The Council’s balance sheet was monitored regularly in accordance with the Reserves and Balances Strategy, which formed part of the Medium Term Financial Strategy. The key reserves and balances had been reviewed and considered prudent and appropriate at this stage in the financial year.

            RESOLVED: That

1)    all spending continues to be limited to the absolutely essential items;

2)    departments seek to implement as soon as possible the 2019/20 budget savings proposals listed in Table A, which were approved by Council in March 2019;

3)    Strategic Directors take appropriate action to ensure overall spending is contained as far as possible within their total operational budget by year-end; and

4)    Council be recommended to approve the revised Capital Programme, as set out in Appendix 2, attached to the report.