Agenda item

That the current financial forecast and the ongoing work by departments to reduce the overspend be noted.

The Leader of Council introduced a report that updated the Cabinet on the latest quarter 2 forecast financial information for the 2016-17 year.

The Cabinet welcomed Neil Wilcox, the newly appointed Assistant Director Finance & Audit to his first Cabinet meeting.  It was noted that the finance report would in future be considered on a monthly basis by the Cabinet and the performance report would be quarterly.  Work was underway to redesign the performance report and it was anticipated that this was would come to the January Cabinet meeting.

The Assistant Director reported that the forecast overspend had increased to £1.6m since the most recent report to Cabinet.  In addition to the previously reported pressure of £1m on the Adult Social Care budget, an overspend of £423k was reported in Assets, Infrastructure and Regeneration arising from lower than budgeted asset acquisition income and £470k in the Highways and Environment Service due to the impact of homelessness pressures on temporary accommodation costs.  Work was ongoing to reduce the forecast overspend by year end and the Cabinet would consider further proposals to increase income through the strategic acquisitions fund later on the agenda.  The forecast net capital outturn was £73.5m against the total capital programme for the 2016/17 of £106.5m.  The Housing Revenue Account was showing a surplus of £0.4m.

Speaking under Rule 30, Councillor Anderson suggested that the annual budget forecast comparison chart in section 6.2 of the report be rebased to exclude historic children’s services budget information to enable a like for like comparison with previous years.  He expressed concern that the chart showed the level of overspend was still rising at Month 6 compared to previous years when it was generally reducing.  The Assistant Director commented that the overspend was below the level at the same stage in 2015/16 and that it was expected that the measures taken would bring start to reduce the overspend over the coming months.

At the conclusion of the discussion, the Cabinet agreed to note the report.

Resolved –  That the current financial forecast and the ongoing work by departments to reduce the overspend be noted.