Issue - meetings

Cabinet Member: Finance

Forward Plan Ref: 2018/089

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

Report by Director of Finance (CA7).

The purpose of this report is to set out the forecast position of the revenue budgets as at the end of May 2018.  This report also includes an update on the Medium Term Financial Plan savings, reserves and balances.

The Cabinet is RECOMMENDED to:

(a)          note the report

(b)          approve the virements as set out in Annex 2a;

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

(d)         note the use of the £7.5m iBCF ringfenced grant funding in 2018/19 as set out in paragraph 15;

(e)         approve the transfer of the Troubled Families Payment by Results Grant Funding into the Government Initiatives Reserve for use by Children’s Services as set out in paragraph 19;

(f)           approve the transfer of £3.9m from the Budget Priorities Reserve to the Transformation Reserve as set out in paragraph 20;

(g)          approve the bad debt write-offs as set out in paragraph 27;

(h)          approve the fees and charges as set out in paragraph 33 and Annex 6.

Recommendations agreed.

Cabinet considered a report that set out the forecast position of the revenue budgets as at the end of May 2018.  The report also included an update on the Medium Term Financial Plan savings, reserves and balances.

Councillor Phillips, Shadow Cabinet Member for Finance, stated that whilst all appeared well, use had been made of unallocated contingency and she highlighted a number of high risk areas including lack of government funding for unaccompanied young asylum seekers, the Direct Support Grant, care packages and intermediate care beds. Councillor Phillips also drew attention to the continuing uncertainty around Carillion and concerns over the effectiveness of the Fit for the Future programme. Overall, she highlighted the lack of investment and the ongoing effect on service users.

Councillor Bartholomew, Cabinet Member for Finance responded to the points made commenting that it was difficult to reconcile comments on lack of investment and overspends. On risks the Council was demand led and that meant there would always be uncertainties. The risks were managed very closely. On asylum seekers the figures portrayed clearly the deficit in funding from the government and this flagged up the problem. Councillor Hudspeth, Leader of the Council, added that he had lobbied government on this issue several times.

Councillor Bartholomew introduced the contents of the report and moved the recommendations.

During discussion Cabinet commented that it was early in the year and that the early awareness of risk was appropriate.

RESOLVED:to:

(a)         note the report

(b)         approve the virements as set out in Annex 2a;

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

(d)         note the use of the £7.5m iBCF ringfenced grant funding in 2018/19 as set out in paragraph 15;

(e)         approve the transfer of the Troubled Families Payment by Results Grant Funding into the Government Initiatives Reserve for use by Children’s Services as set out in paragraph 19;

(f)           approve the transfer of £3.9m from the Budget Priorities Reserve to the Transformation Reserve as set out in paragraph 20;

(g)         approve the bad debt write-offs as set out in paragraph 27;

(h)         approve the fees and charges as set out in paragraph 33 and Annex 6.