Issue - meetings

Financial Monitoring - Forecast position as at Q2

Meeting: 10/11/2022 - Cabinet (Item 3)

3 2022-23 Financial Monitoring - Forecast Position as at Quarter 2 pdf icon PDF 467 KB

This report provides Cabinet with an update on the Council’s financial performance.


Cabinet Portfolio Holder – Councillor Peter Butlin

Additional documents:


Councillor Peter Butlin (Deputy Leader and Portfolio Holder for Finance and Property) explained to Cabinet that the quarter two position was relatively straight forward for revenue as detailed in the report, savings were broadly on track and the £4.44m net overspend detailed in the report was due almost entirely to a £6.05m forecast overspend for Education services, the majority from inflationary and demand pressures in SEND and mainstream Home to School Transport.   Compared to quarter one, there was a large reduction (£1.4m) in the Adults underspend, bringing it back in line with expected budget.  Children Services had also seen a reduction in the previously reported underspend, shifting to a £0.29m overspend, which was still broadly on budget.  In respect of Capital, once unallocated capital funding was taken out, the quarter two programme sat at £114m compared to a current budget of £129.2m, with the main movements relating to project delays reprofiled into future years and programme additions.


In response to a query from Councillor Jerry Roodhouse about proposals for home to school transport, Councillor Kam Kaur noted that this was an area which cut across portfolio holder responsibilities and some work was required to understand how home to school transport would be delivered going forward.  She noted that it was important to ensure that the factors around public transport that might affect parental choice for school places were made clear to parents and work on this messaging was required.   In terms of the timing for introducing any changes to the policy, Monica Fogarty reiterated the importance of ensuring parents had all the information required when making their school choices since it would inevitably influence their decisions on which schools to apply for.  Therefore, once there was clarity on home to school transport proposals, the implications for the next admissions round would need to be considered.   Councillor Butlin noted that that a working party, associated with the Budget Working Group had been set up to consider the home to school transport policy.


With regard to a question from Councillor Feeney regarding SEND and Inclusion overspending, Councillor Kaur explained that the demand for Education, Health and Care Plans (ECHPs) had increased.  Work was taking place with schools to understand how the Council could assist the process and support parents.  She noted that the Panel was independent and the choice to appeal lay with parents. 




That Cabinet:


1.     Notes the adjusted forecast overspend of £4.439m (1.2%) that would need to be funded from the Directorate and General Risk Reserves at the end of 2022/23.


2.     Notes the forecast delivery of savings for 2022/23 of £9.406m, a shortfall of £0.838m (8.2%) against the target.


3.     Notes the forecast capital spend for 2022/23 of £114.048m.


4.     Approves the reprofiling of spend on the capital programme of £19.729m in 2022/23 into future years and note the carry forward of s278 contributions of £0.100m that is not directly controllable by the Council.