Agenda item

2019/20 Financial Monitoring as at the end of June 2019 - Revenue and Capital

Meeting of Cabinet, Thursday 12 September 2019 1.45 pm (Item 2(2))

Decision:

Resolved

That Cabinet:

a) Notes the forecast underspend of £6.298m for the 2019/20 financial year on the Council’s revenue budget.

b) Approves the net transfer of £3.000m from the adults social care underspend to reserves.

c) Approves the drawdown of the following earmarked reserves to support planned activity:

• £0.223m for the Special Educational Needs and Disabilities (SEND) demand management programme;

• £0.085m for the Warwickshire Bytes project

d) Notes the consolidation of existing transformation reserves to create a single transformation reserve to support the Corporate Transformation Programme.

e) Notes the forecast underspend on the capital programme of £17.752m.

f) Approves the addition to the capital programme of £0.997m for additional Hawkes Point refurbishment costs and note that this will be funded from revenue or from a contribution from property reserves.

g) Approves the carry forward of the underspend on the capital programme of £17.752m into the 2020/21 and future years capital programme and the changes to the cost and funding of schemes detailed in the report and in Annexes A to M.

Minutes:

Councillor Peter Butlin identified key elements of the report highlighting an overall forecast underspend of £6.298m. Cabinet was informed that whilst this headline figure was encouraging there are some areas where significant overspends are forecast. These include Education Services, Environment Services, Fire and Rescue, the Strategic Commissioner for Communities, Children and Families and the Strategic Commissioner for People.

Reserves are forecast to stand at £165.272m by the end of the financial year. Expenditure on the Capital Programme is expected to be lower than planned although the Hawkes Point project will see additional expenditure on roofing works.

Councillor Richard Chattaway questioned why after the first quarter of the financial year a significant underspend was being forecast. Whilst he welcomed the ambitious nature of the Capital Programme, Councillor Richard Chattaway questioned whether the organisation has sufficient capacity to deliver it. It may be necessary to look outside of the Council and secure expertise from elsewhere to provide support. In response to the issues around Hawkes Point Councillor Chattaway questioned whether the state of the roof should have been assessed earlier in the project.

Referencing paragraph 6.7 Councillor Keith Kondakor suggested that smaller capital transport schemes should be favoured over the large ones. He cited the removal of the Hinckley Road bridge in Nuneaton which was scheduled to be removed in 2018 but had not been carried out. Large road projects are contrary to the message around the climate change emergency debated and agreed at Council in July.

Councillor Jerry Roodhouse questioned the capacity of the council to take account of the infrastructure requirements of the district and borough council local plans. In addition, Councillor Roodhouse emphasised that the additional money for adult social care announced recently by government has been committed for one year only. Finally, Councillor Roodhouse emphasised the need to provide resources for the drug and alcohol service remembering the impact that substance misuse has on levels of domestic violence.

In response to members’ comments Councillor Jeff Clarke (Portfolio Holder for Transport and Planning noted that workforce reviews have been undertaken to optimise levels of support for capital projects. The Hinckley Road bridge is set to be removed in October of 2019 and other major road schemes are required to ensure that people can continue to move around the county.

On adult social care funding Councillor Les Caborn (Portfolio Holder for Adult Social Care and Health) assured the meeting that the positing adult social care funding was clear and being managed effectively.

The need for Capacity for the delivery of capital transport schemes was acknowledged by Councillor Peter Butlin who stated that the HS2 project had an impact on such capacity. Finally, Councillor Butlin reminded members that some major road schemes such as Stanks island in Warwick aim to improve road safety as well as reducing congestion.