Agenda item

The Head of Finance introduced the report and provided the Committee with a summary of the overall financial position following Quarter 1. Members were advised that there were 4 significant areas of overspend:

·        Out of area placements within Children’s Services;

·        Out of county placements for Education;

·        Community Care services within Adult Services;

·        Undelivered savings within the Streetscene budget.

Of these, the undelivered savings within the Streetscene budget was within the remit of the Committee for consideration. It was also highlighted that the use of the contingency budget to cover these overspends was significant. The Corporate Areas, which included Finance and People and Business change, were slightly underspent .

Members queried what processes and checks were in place to ensure that future savings were achieved. The Head of Finance could not comment on savings for this year, as the proposals were being developed for the Cabinet in due course.

Streetscene and City Services Budget

Invitees:

·        Strategic Director – Place

·        Senior Strategy Manager

·        Cabinet Member – Streetscene

The Cabinet Member provided an overview of the current situation within the Streetscene and City Services budget. It was outlined that there were a number of underlying issues within Streetscene services which needed to be addressed, and the budget needed to be reviewed and unpicked to establish an appropriate baseline for the future.  There had been an issue with sickness levels, which had an impact on the budget, particularly in light of the nature of the services being provided within this area.

The Strategic Director – Place explained that this work was ongoing, and several steps had been taken to address underlying issues, including addressing the complex recharging that was taking place between the services within Streetscene.  Further work was needed to unpick the budget and to fully address the cause of the budget pressures.  Members were advised of the absence of a long term Head of Service for this area over the previous years, which impacted upon the rate of the necessary changes.

Members’ questioned when the review of the budget would be completed, and whether this would continue to be an issue for the next financial year. Members were advised that this would be completed before the end of the financial year. 

The Cabinet Member advised the Committee that mitigations were being looked at, including looking are more effective ways of working and utilising income streams, such as car parking. 

Conclusion – Comments to the Cabinet

The Committee noted the overspend within the Streetscene budget and raised concerns of the need for this to be addressed, so as not to accumulate to an unmanageable level within the next quarters.

Members noted the explanations given by the Cabinet Member and the lead officer for the overspend, and acknowledged the actions being taken by the service area to reduce risk and impact of any further overspends.

The Committee suggested that should the budget position at quarter 2 remain overspent, that further written explanation is provided within the report on how this this being managed, and further detail of the mitigations being put in place to limit the impact of the un-delivered savings on the overall budget.

Law and Regulation Budget

Invitees:

·        Head of Law and Regulation

·        Strategic Director – Place

The Head of Law and Regulation indicated that there were inevitable fluctuations within the budget for this area, with small pockets of overspend, however the overall budget position was underspent. There had been a significant overspend in staffing costs to due to MTRP redundancy costs that did had not yielded a full years savings due to the timings of the budget approval, delaying implementation.

Members asked whether the £50,000 reduction in income for CCTV meant that this service had been reduced. Members were advised that there had been an assumed income from charging neighbouring authorities for CCTV within the budget that had not materialised. The budget had been managed by offsetting the reduced income elsewhere in the budget.  CCTV had not been reduced, and there had been an investment in the service for more modern equipment.

Members queried how this had been offset within the budget. The Head of Law and Regulation advised that it was a difficult process requiring the budget holder within Law and Regulation to tightly manage the budget – cutting back on certain supplies in the short term, holding post vacant where it does not pose an immediate risk.

Conclusion – Comments to the Cabinet

Members noted the budget position within Law and Regulation as currently holding a slight underspend. The Committee acknowledged the mitigations in place to manage pockets of overspend, namely the management of the budget holders within Law and Regulation to tightly manage the budget – cutting back on certain supplies in the short term, holding post vacant where it does not pose an immediate risk. It was noted that these measures would not be sustainable in the longer term, however noted that it was necessary to stay within budget at present.

People and Business Change Budget

Invitees:

·        Head of People and Business Change

·        Cabinet Member – Communities and Resources

The Head of People and Business Change outlined the current position within the budget for People and Business Change, with a slight underspend overall and a significant underspend on staffing. This was due to holding vacant posts to hold in year pressures to allow progress to be made in relation to the new performance management system, staff conference and the new development system – Clear Review.  The staff conference was an event for staff to communicate corporate messages within the Corporate Plan, and included a series of workshops for staff on the four themes within the Plan.  Members commended the innovative work being undertaken in this area.

Conclusion – Comments to the Cabinet

The Committee noted the budget position within Head of Peoples and Business Change as currently holding a slight underspend.

Regeneration, Investment and Housing

Invitees:

·        Cabinet Members – Regeneration and Housing

·        Head of Regeneration, Investment and Housing

·        Strategic Director – Place

The Cabinet Member outlined that current budget position within Regeneration, Housing and Investment with an overspend. Members were advised that the figures for the following quarter were likely to show a reduction in the overspend, due to mitigations being put in place within the quarter one, the impact of which would show by quarter 2.

Members queried why there had been an underspend in the budget for Mary Dunn Community Centre. Members were advised that one of the charges from NORSE was incorrect and had been adjusted, resulting in an underspend for the Mary Dunn Community Centre.  Councillor John Richards declared an interest as the Ward Member covering this area.

There would be an impact on services next year due to the Communities first funding withdrawal. Members were advised that there would be some funding available, but not the same as what had previously been available through Communities first. The Head of Regeneration, Investment and Housing assured Members that the impact of this was being considered and appropriate mitigations would be put in place.

Conclusion – Comments to the Cabinet

The Committee noted the budget position within Head of Peoples and Business Change as currently holding a overspend, and noted the actions being put in place to address to overspend within quarter 2.