Decision details

CAB 03/18 

November Revenue Budget Monitor

Options Considered/Reasons for Decision

The Chair of Cabinet presented the latest revenue budget monitor, reporting the forecast on the Council’s revenue budget at the end of November.

As was reported to Cabinet in November, the Council was seeing significant and unprecedented demand in social care and special education services, which was an issue for Councils across Wales, and the UK.   However Cabinet were asked to note that the position was being managed within the overall budget, and actions previously agreed by Cabinet had helped to keep this under control, for example the non-essential spend restrictions.

Since the last report the overall position had improved, and thanks were extended to senior managers and their teams for their work here to date. It was noted that, whilst there were inherent risks in these forecasts, not least in these demand-led areas, there were also opportunities for the position to improve further towards the end of the financial year, and senior members and officers would be keeping a close eye on this. 

As the report highlighted, a key focus was now on how to stabilise and manage the demands and lower the future costs pressures on these social care and education budgets.  It was recognised that this would take some time, so the authority must manage the risks in these areas in the meantime, whilst continuing to meet the needs of our most vulnerable residents.    

In commenting on the report, Cabinet Members highlighted the ongoing challenges associated with budget reductions and austerity measures, and the efforts being made to seek innovative, regional solutions to the issues being faced, particularly in the areas of high overspends.  This included repeated lobbying on this issue of Welsh and National Government representatives.  Members also noted the continuing professionalism of officers in managing complex budgets and business streams, and keeping the financial position under control in the face of significant challenges.

Decisions:

1.    To note the overall budget forecast position and key budget challenges.

2.    To note the use of the Council’s contingency budget to balance the current level of overspending, previously approved by Cabinet, which will be assessed each month on an ongoing basis.

3.    To note that a targeted non-essential spending restriction is already in place as reported previously and re-affirm the need for robust financial management and maximise savings on the non-essential spend restrictions, wherever possible.

4.    To note the level of undelivered savings and the risks associated with this.

5.    To note the forecast movements in reserves.

Consultation

Strategic Directors; Heads of Service; Budget Holders; Accountancy Staff.

Implemented By:  Cabinet Members, Head of Finance, Senior Leadership Team and Corporate Management Team.