Issue - meetings

A report from the Executive Director – Resources is attached. (Key decision – reference number 5016)

(Report No.125)

(7.20 – 7.25 pm)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources (No.125) setting out the Council’s revenue budget monitoring position based on information to the end of September 2019.

NOTED

1.    The forecast overspend was £8.9m. Using capital receipts of £3.2m, the revenue budget forecast reflected an outturn position of £5.7m overspend for 2019/20 which would be funded using the Council’s reserves, as detailed in the report. This was an increase of £1.8m on the £3.9m reported as at Quarter 1.

2.    Savings since 2010 were highlighted, and further savings in the current financial year and income were agreed and savings agreed from prior years. Delivering the savings and additional income generation was challenging and work continued on budget setting.

3.    Enfield continued to experience rising cost pressures, especially from adult and children’s social services, and continued increases in child numbers on SEN transport, and ongoing risk associated with Temporary Accommodation.

4.    The forecast position for the Dedicated Schools Grant was detailed in the report.

5.    The Housing Revenue Account was forecasting an overspend position of £0.1m for 2019/20 outturn.

6.    The departmental monitoring information, budget pressures and mitigating actions were set out in the report and its appendices.

7.    Attention was drawn to paragraph 3.11 of the report in respect of one-off funding announcements, which were welcomed, but there was a lack of multi year settlement.

8.    Enfield continued to lobby for fairer funding.

9.    The Council’s revenue expenditure against budget continued to be monitored closely, with regular reports, and realistic savings in a robust process.

10. Management action taken to reduce costs included reconvening the Pressures Challenge Board to review the most significant pressures.

11. Members noted the budget pressure in the Council company Independence & Well Being Ltd, and the company’s responsibilities as the Council’s provider of last resort and the need to continue to look after people.

Alternative Options Considered:  Not applicable to this report.

DECISION:  The Cabinet agreed to:

1.    Note the financial backdrop to the Council’s budget position (described in paragraphs 3.1 to 3.11 of the report).

2.    Note the £5.7m overspend revenue outturn projection and the use of £3.2m of capital receipts to support organisation transformation.

3.    Note that Cabinet Members would continue to work with Executive Directors to implement action plans to reduce the forecast overspend in 2019/20 and implement savings.

4.    Note £1.5m of the overspend in respect of IWE being met from Contingency as set out in paragraph 5.9 of the report.

5.    Note the position of the Dedicated Schools Grant (DSG) as set out in section 5.53 of the report.

6.    Note the position of the Housing Revenue Account (HRA) as set out in section 7 of the report.

7.    RECOMMENDED THAT COUNCIL approve the update to the planned flexible use of capital receipts for 2019/20 (paragraph 5.46 and Appendix I of the report).

Reason:  To ensure that Members were aware of the projected budgetary position, including all major budget pressures and underspends  ...  view the full minutes text for item 3