Issue - meetings

The report brings together information on the Council’s key budget areas of salaries, major income streams and investment income.  The performance of the key budget areas, together with the approved variations to the revenue budget and areas identified through revenue budget monitoring are then summarised to provide an indicative overall budget position for the year.  The report also updates Members on capital expenditure and variations agreed in relation to the capital plan.

(Report of Director of Finance and Transformation)

The report provided information on the Council’s key budget areas of salaries, major income streams and investment income.  It also gave details of the variations agreed in relation to the revenue budget and areas identified through budget monitoring, summarised to provide an indicative overall budget position for the year which showed a net adverse variance of £375,250. 

An update was given on capital expenditure and variations agreed in relation to the capital plan.  The report also gave an update on the Savings and Transformation Strategy and funding gap.

It was noted that whilst the budget performance for the year was no cause for concern, over the medium term the position was worsening in respect of the projected funding gap.  It was therefore considered that each advisory board and committee should be requested to identify opportunities for savings and transformation contributions over the budget cycle.  To assist this process it was suggested that reports should identify whether services were mandatory or discretionary and the section on Financial and Value for Money Considerations be reinforced.

Following consideration by the Finance, Innovation and Property Advisory Board, the Cabinet Member for Finance, Innovation and Property resolved that:

(1)          it be noted that as at the end of August 2019, the projected overall outturn position is a net adverse variance of circa £375,250 after making an additional contribution to the revenue reserve for capital schemes of £466,000, when compared to the budget set in February 2019;

(2)          the worsening position in respect of the projected funding gap be noted together with the need over the coming months  to identify and implement opportunities to deliver at least this year’s savings and transformation contribution of £100,000 which, as things stand, would give a funding gap higher than at the start of the year; and

(3)          it be recommended to Cabinet that each Advisory Board and Committee should be requested to identify and bring forward opportunities for savings and transformation contributions during this financial year for inclusion in the Medium Term Financial Strategy and Savings and Transformation Strategy.

Decision Notice D190066MEM

The report of the Director of Finance and Transformation provided information on the Council’s key budget areas of salaries, major income streams and investment income.  It also gave details of the variations agreed in relation to the revenue budget and areas identified through budget monitoring, summarised to provide an indicative overall budget position for the year which showed a net adverse variance of £375,250.  An update was given on capital expenditure and variations agreed in relation to the capital plan.  The report also gave an update on the Savings and Transformation Strategy and funding gap.

It was noted that whilst the budget performance for the year was no cause for concern, over the medium term the position was worsening in respect of the projected funding gap.  It was therefore considered that each advisory board and committee should be requested to identify opportunities for savings and transformation contributions over the budget cycle.  To assist this process it was suggested that reports should identify whether services were mandatory or discretionary and the section on Financial and Value for Money Considerations be reinforced.

RECOMMENDED:  That

(1)          it be noted that as at the end of August 2019, the projected overall outturn position is a net adverse variance of circa £375,250 after making an additional contribution to the revenue reserve for capital schemes of £466,000, when compared to the budget set in February 2019;

(2)          the worsening position in respect of the projected funding gap be noted together with the need over the coming months  to identify and implement opportunities to deliver at least this year’s savings and transformation contribution of £100,000 which, as things stand, would give a funding gap higher than at the start of the year; and

(3)          it be recommended to Cabinet that each Advisory Board and Committee should be requested to identify and bring forward opportunities for savings and transformation contributions during this financial year for inclusion in the Medium Term Financial Strategy and Savings and Transformation Strategy.