Issue - meetings

Cabinet Member: Finance

Forward Plan Ref: 2022/217

Contact: Kathy Wilcox, Head of Financial Strategy, 07788 302163

Report by Director of Finance (CA7).

Note the report and agree any specific recommendations.

The Cabinet is RECOMMENDED to

a)                      note the report and annexes

b)                      agree the virements in Annex B-2a

c)                      note the virements in Annex B-2b

d)                      agree the use of a further £1.0m from the COVID-19 reserve to offset pressures in Children’s Services.

Recommendations approved.

Cabinet considered the fourth financial monitoring update for the 2022/23 financial year, based on information to the end of October 2022. Key issues, as well as risks relating to inflation, demand and other factors, plus areas of emerging pressure were explained in the report.

Councillor Calum Miller, Cabinet Member for Finance, summarised the report:

·       The updated overspend figure for Children’s Services was £14.5m.

·       That was somewhat offset by contingency drawdown and increased interest from treasury investments giving an overall overspend of £10.4m.

·       This led to a reduction in the General Balance to £25.6m which was below the recommended risk level.

·       The High Needs Block overspend was projected to be £17.5m by the end of the year due to gross government under-funding in this area.

·       The report gives more detail on this and outlines the actions in response.

·       £2.1m of the projected savings were at risk, mainly due to inflationary pressures.

Councillor Liz Brighouse, Cabinet Member for Children, Education & Young People’s Services, noted that the costs were also increasing significantly for Looked After Children.  There needed to be more scrutiny of the numbers coming through the MASH (Multi-Agency Safeguarding Hub).  She expected that some work will succeed in reducing the figures by the time it comes to setting next year’s budget.

The Chair emphasised that the same challenges were faced by local councils across the country due to underfunding by central government.

The recommendations were proposed by Councillor Miller, seconded by Councillor Phillips and agreed.

RESOLVED to:

a)                  note the report and annexes

b)                  agree the virements in Annex B-2a

c)                  note the virements in Annex B-2b

d)                  agree the use of a further £1.0m from the COVID-19 reserve to offset pressures in Children’s Services.