Councillor Muldowney presented the projected revenue outturn for 2024-25 at Quarter 1. Councillor Muldowney summarised that the Council faces a total net General Fund overspend of £2.1 million, with a projected service overspend of £3.1 million, despite transfers of £6.2 million from earmarked reserves.

Councillor Muldowney stated that to manage pressures associated to the homelessness crisis, the Place Directorate will be using £965,000 from the Covid Contain Outbreak Management Fund to offset a £1.9 million homelessness overspend. The Place Directorate also continues to face unprecedented costs associated to waste disposal. 

Councillor Muldowney noted that in Adult Social Care there is currently an underspend however the winter period could bring additional pressures, particularly around complex placements and hospital discharges. Children’s Services faces challenges with rising placement costs; to support this the directorate is working with ImPower to review these cases and manage these costs. Home to School Transport is being closely monitored as the new term begins. The Dedicated Schools Grant, particularly the High Needs Block, is under pressure due to increasing numbers of children with EHCPs.

Councillor Muldowney added that within Corporate Services options for the NATIS service are being reviewed and in Finance interim staff costs are being addressed with permanent recruitment underway. 

Councillor Muldowney confirmed that the £19.9 million savings target continues to be monitored. As of Quarter 1, 3% of this target is flagged as red and these areas are being actively addressed.

Councillor Muldowney thanked all those involved in preparing the report. The report is in a new format to provide greater transparency and detail and this is part of the shift in culture and better governance across the council.

There were no questions from the cabinet members. The Leader permitted a question from a non-executive member.

Councillor Speight queried if the reserves are actual money and the difference between reserves and earmarked reserves.

The Assistant Director of Financial Management and Procurement confirmed the figures in red are actual credits (actual money) sitting in reserves.

The Leader clarified that ear marked reserves are ear marked for a specific purpose, in the same was as a household puts money aside for a car or a holiday. The general reserves can be drawn on for anything.

The Leader thanked the Portfolio Holder and Directors for the work they had put into the report and stated that they have no alternative but to deliver on the budget. The Leader commented that between 2016-2022 only 1 million pounds of savings were identified and delivered and this is one of the reasons the Council is in the mess that it is in. The Leader passed on his gratitude to the Portfolio Holder and Directors for ensuring savings were delivered whilst doing as little damage to front line services as possible.

RESOLVED:

Cabinet noted the following:

2.1          The council’s service position and forecast overspend position as at quarter 1 of £3.070m.

2.2          That the service pressures highlighted, and the actions being taken to mitigate these, be noted, to resolve the overspend forecast against the current year budget, with a review of progress by the end of September 2024.

2.3          The capital programme and the anticipated General Fund Capital Programme slippage of £11.776m projected in the report.

2.4          This position will remain provisional while further financial review is carried out and will be presented in the next quarter report.

2.5          That the quarter 2 report will present a movement between quarters to demonstrate the direction of travel.

Reason for the decision: as outlined in this report

This decision is subject to call-in