Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2017/014

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Strategy & Monitoring) Tel: 07584 909518

Report by Director of Finance (CA6).

This is the first financial monitoring report for 2017/18 and focuses on the delivery of the 2017/18 budget based on projections at the end of May 2017.  Part 1 sets out the projections for revenue; part 2 includes the forecast position for reserves and balances; part 3 sets out the Capital Programme monitoring and update. 

The Cabinet is RECOMMENDED to:

(a)  note the report;

(b) approve the virement requests set out in Annex 2a;

(c)  note the Virements set out in Annex 2b;

(d) approve the use of the £6.3m improved Better Care Fund ring-fenced grant funding detailed in paragraph 32:

·         £1.2m Improving Flow

·         £1.7m Market Resilience

·         £0.6m Strategic Review of Home Support

·         £2.1m Additional Capacity

·         £0.7m balance to be allocated as required;

(e)  note the Treasury Management lending list at Annex 3;

(f)   approve the updated Capital Programme at Annex 7 and the associated changes to the programme in Annex 6c;

(g) delegate authority to the Director of Finance and Strategic Director for Communities, in consultation with the Leader of the Council to contractually commit to the construction of the Faringdon Community College two form entry expansion project, with a total budget of £6.290m; and

(h) approve the capital funding allocation of £1.04m for the A4155 Henley Road (Flowing Springs) embankment repair works.

Cabinet considered the first in a series of financial monitoring reports for 2017/18 and focused on the delivery of the 2017/18 budget based on projections at the end of May 2017.  Part 1 set out the projections for revenue; part 2 included the forecast position for reserves and balances; part 3 set out the Capital Programme monitoring and update. 

Councillor Jamila Begum Azad, local councillor for St Clements & Cowley Marsh highlighted the overspend in the Children, Education and Families (CEF) budget and particularly that relating to early intervention and also to home to school transport. Despite additional money demand continued to grow and she questioned how Cabinet would ensure that the early help needed was available. Councillor Begum Azad also referred to the significant increase in looked after children and highlighted out of county placements seeking assurances that children received the support they needed.

Councillor Helen Evans, Shadow Cabinet Member for Finance also highlighted the underspend overspend*  in CEF. She commented that this was not unexpected given that demand was growing nationally and queried why more money had not been budgeted. There was concern in the Labour Group that the Council would struggle to deliver the ambitious plans for change and queried whether the expected reductions were realistic and what would happen in the event of a shortfall. With regard to adult social care she noted the break even position which was in part due to the underspend in the Support at Home budget. She referred to the increase in the Better Care Funding and hoped that serious consideration would be given to bringing this element back in house. Councillor Evans also expressed Labour Group concern at the continuing underspend in the public health budget.

Cabinet Members responded to the points made noting that this was a very early stage in the year and that overspends and underspends at this point were usual. Cabinet  stressed its commitment to safeguarding issues and that everything possible would always be done to ensure the safety of the children of Oxfordshire. Cabinet noted that Councillor Hilary Hibbert-Biles had previously given the Labour Group a detailed note on the public health budget.

Councillor David Bartholomew, Cabinet Member for Finance introduced the contents of the report and moved the recommendations. He thanked Lorna Baxter and the financial team for their work highlighting the Council’s strong record in financial budgeting.

Cabinet’s attention was drawn in particular to recommendation (d) in the report relating to the Better Care Fund

RESOLVED:             to:

(a)  note the report;

(b)  approve the virement requests set out in Annex 2a;

(c)  note the Virements set out in Annex 2b;

(d)  approve the use of the £6.3m improved Better Care Fund ring-fenced grant funding detailed in paragraph 32:

·         £1.2m Improving Flow

·         £1.7m Market Resilience

·         £0.6m Strategic Review of Home Support

·         £2.1m Additional Capacity

·         £0.7m balance to be allocated as required;

(e)  note the Treasury Management lending list at Annex 3;

(f)   approve the updated Capital Programme at Annex 7 and the associated changes to the programme in Annex 6c;

(g)  delegate authority to the Director of Finance and Strategic Director for Communities, in consultation with the Leader of the Council to contractually commit to the construction of the Faringdon Community College two form entry expansion project, with a total budget of £6.290m; and

(h)  approve the capital funding allocation of £1.04m for the A4155 Henley Road (Flowing Springs) embankment repair works.

* Correction agreed 19 September 2017