A report from the Director of Finance is attached. (Key decision – reference number 4764)
(7.55 – 8.00 pm)
Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Director of Finance (No.164) setting out the Council’s revenue budget monitoring position based on information to the end of December 2018.
1. That after the application of capital receipts for transformation purposes of £4.2m; the revenue budget forecast reflected an outturn position of £4.1m overspend for 2018/19 which would be funded using the Council’s reserves. The key reasons for the improved position were noted, as outlined in paragraph 1.2 of the report.
2. That since 2010, the Council had saved £161m. Members noted the challenges for 2018/19 as detailed in paragraph 1.3 of the report.
3. That Table 1 of the report set out the forecast projected departmental outturn variances. Members further noted the management actions being taken, the key factors of the overspend and, the establishment of the Pressures Challenge Board, as outlined in paragraphs 4.4 – 4.6 of the report.
4. The departmental monitoring information, budget pressures and mitigating actions as set out in section 5 and the appendices of the report.
5. In response to a question raised, Members were advised on the availability of existing capital receipts of £4.2m for the current financial year.
Alternative Options Considered: Not applicable to this report.
DECISION: The Cabinet agreed to note
1. The financial backdrop to the Council’s budget position (described in paragraphs 3.1 to 3.9 of the report).
2. The £4.1m overspend revenue outturn projection and the use of £4.2m of capital receipts to support organisation transformation.
3. That Cabinet Members would continue to work with Executive Directors to implement action plans to reduce the forecast overspend in 2018/19 and implement savings.
Reason: To ensure that Members were aware of the projected budgetary position, including all major budget pressures and underspends which had contributed to the present monthly position and that were likely to affect the final outturn.
(Key decision – reference number 4764)