Issue - meetings

This report provides details of the headline financial performance issues for 2011-12, covering the period 1 April 2010 to 30 June 2011.  It assesses performance against budgets and sets out progress on the Council’s savings programme and the position of the Council’s revenue reserves.

RESOLVED: (i)         That the current projected pressures of £4,288k be noted.

(ii)        That it be noted that strategies are being prepared to mitigate this position.

REASON:      In order to ensure that expenditure is kept within budget.

Members considered a report which provided details of the headline financial performance issues for the first quarter of the 2011-12 financial year, covering the period 1 April to 30 June 2011.

The net General Fund budget for 2011-12 was £123,900k, inclusive of £1,025k usage of reserves and balances.  Early forecasts indicated that the Council faced financial pressures of £4,288k, as outlined in Table 1, at paragraph 8 of the report.  Key pressures included:

·         Increasing demand for Independent Residential & Nursing Care in Adult Social Services

·         An increase above forecasts in the number of children in the care of the Council

·         A continued shortfall in Building and Development Control income

·         Delays in achieving cross-directorate savings in Communities & Neighbourhoods.

Further information on performance within directorates and measures being taken to mitigate the council-wide position was provided in paragraphs 12 to 26 of the report. 

On the Dedicated Schools Grant, there was a projected underspend of £306k against a budget of £106,642k, primarily due to lower than expected costs relating to SEN Out of City Placements.  An underspend of £82k was forecast against the current Housing Revenue Account balance of £9,543k, due to a decrease in the negative subsidy payment to central government.  Reserves on the General Fund were now close to the minimum level of £6.1m (5% of the net budget).

In response to questions from Members, Officers confirmed that progress was being made towards the required savings and delivery of a balanced budget, and that the budget pressures currently faced by the Council were similar to those at the same time last year.

RESOLVED: (i)         That the current projected pressures of £4,288k be noted.

(ii)        That it be noted that strategies are being prepared to mitigate this position.

REASON:      In order to ensure that expenditure is kept within budget.