Issue - meetings

A report outlining the forecast financial position of the organisation at the end of 2024/25, based on information known at the end of the third quarter.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader and Portfolio Holder for Finance and Property) presented this report, which outlined the forecast financial position of the organisation at the end of 2024/25, based on the information known at the end of the third quarter.  He advised the meeting that there were headline overspends of 39.4m, however, taking account of funding and reserves already set aside, the net residual overspend was £6.6m which was an improvement on the overspends seen at quarter 2.  This reduction in overspend was the result of the Financial Recovery Plan which has 4 strands outlined in paragraph 2.4

Councillor Butlin stated that the Dedicated Schools Grant (DSG) deficit remained a concern with a forecast overspend of £44.4m, taking the forecast cumulative DSG High Needs Block deficit to £84.7m and the Council would need to use the statutory override to cover what had not been provided for (£27.2m).  Special educational needs and disabilities (SEND) remained a budget pressure for which a national solution was required.  Other budget pressures highlighted were the continued increase in volume and demand in both Adult and Children’s social care, market failure in terms of excessive costs for placements and lack of capacity, and home to school transport. Councillor Butlin concluded by drawing attention to the sections of the report relating to savings forecast and capital. 

In response to a question from Councillor Holland, Councillor Butlin explained the statutory override as a type of overdraft allowed by government.  Councillor Seccombe noted that funding for SEND was complex and reiterated that a national review of funding and the legislation was required.

Councillor Sarah Boad asked when figures relating to the A46 Stoneleigh Junction scheme would be known and Councillor Butlin advised negotiations with the contractors were still ongoing.

Resolved:

That Cabinet:

1.     Notes the forecast net service overspend of £6.567m (1.6%) that would need to be funded from reserves at the end of 2024/25;

2.     Notes the forecast delivery of savings for 2024/25 of £9.803m (61%), and the consequent shortfall against the target;

3.     Notes the forecast controllable capital spend for 2024/25 of £169.172m;

4.     Notes and approves the movement in the forecast spend on the capital programme of £13.447m from 2024/25 into future years;

5.     Notes the new S106 developer funding that is being utilised within the capital programme; and

6.     Approves the transfer of £0.472m from the Schools Absence Insurance Equalisation Reserve to the Schools Liability Reserve as detailed in Section 7 of the report.