Agenda item

(a)  That the reported underlying financial position of the Council, including the Slough Children’s Services Trust (SCST), as at the third quarter of the year be noted;

(b)  That the management actions being undertaken by the officers to reduce the budget pressures be noted;

(c)  That the potential impact on the Council’s general reserves and associated implications for the Council based on the latest financial projections, be noted; and

(d)  That the virements and write offs as requested in Section 9 and 10 of the report be approved.

The Service Lead Finance introduced a report that provided an update on the financial position of the Council’s revenue account for the third quarter of the 2019-20 financial year to the end of December 2019.

The forecast year end position for Council run services at the end of the third quarter was an overspend of £1.102m, an increase of £0.909m since the previous quarter.  The reasons included the DSO not meeting income targets and reduced income from bus lane enforcement.  Taking into account the exposure to financial risk from Slough Children’s Services Trust’s position, the potential budget overspend was £2.254m, which was a significant reduction on the second quarter.  The Council, Trust and Department for Education continued to work together to address the financial issues.  In response to a question, it was noted that the £4.3m provision for SCST advanced payment had been removed from the monitoring report as it would only have crystallised if the company had fallen into insolvency during the financial year.  As a result of the work undertaken the stabilise the finances this risk had now reduced and it was not considered likely, although there remained a risk in the next financial year.

Lead Members discussed the actions being taken to reduce the overspend and Directors summarised the key issues in their respective service areas.  The Service Lead stated that the aim was to balance the budget for Council run services by year end.

The Housing Revenue Account was on track to deliver the planned net budget deficit of £2.871m in 2019/20.

Approval was sought for the virement and write off requests detailed in sections 9 and 10 of the report.  These were agreed.  At the conclusion of the discussion, the report was noted.

Resolved –

(a)  That the reported underlying financial position of the Council, including the Slough Children’s Services Trust (SCST), as at the third quarter of the year be noted;

(b)  That the management actions being undertaken by the officers to reduce the budget pressures be noted;

(c)  That the potential impact on the Council’s general reserves and associated implications for the Council based on the latest financial projections, be noted; and

(d)  That the virements and write offs as requested in Section 9 and 10 of the report be approved.