6 Financial Monitoring Report 2022/23 PDF 191 KB
Cllr Lynden Stowe, Deputy Leader and Cabinet Member for Finance and Change, provided an update on the year-end forecast for the 2022/23 County Council’s Revenue and Capital Budgets
Having considered all of the information, Cabinet noted the report and
1. Note the forecast revenue year end position based on December 2022 (Period 9) forecasts for the 2022/23 financial year, which is an overspend of £4.874 million all of which relates to non-Covid-19 expenditure. The Covid-19 related expenditure and income outturn is forecast to be a balanced position.
2. Note delivery of the £6.772 million of savings against a target of £10.987 million in 2022/23 or 61.64% of target as detailed in Section B.
3. Note the forecast capital year end position as at the end of November 2022, forecast made in December 2022 (P9) of £132.756 million against the current budget of £150.974 million.
4. Approve the £1.209 million increase to the capital programme as detailed in Section C.
Cllr Lynden Stowe, Deputy Leader and Cabinet Member for Finance and Change, provided an update on the year-end forecast for the 2022/23 County Council’s Revenue and Capital Budgets and reported a forecast revenue year end position for the 2022/23 financial year, (based on December 2022 forecasts), as forecasting an overspend of £4.874 million, (non-covid related expenditure). Cllr Stowe confirmed good progress in achieving a balanced position, (covid-related expenditure and income outturn), by the end of the 2022/23 financial year.
Cllr Stowe reported a £14.494 million forecast overspend in the Children and Families Budget, reduced to £10.64 million following the application of a one-off unallocated Covid Grant of £3.854 million. The overspend in the Children and Families Budget was partially offset by the £6.553 million underspend in the Technical & Countywide Budget. It was acknowledged that the overspend in the Children and Families Budget continued to be a concern, impacted on from the increasing numbers of children in care and the cost of placements due to limited market availability, both of which constituted national issues. Social care staffing and disability services budgets were also showing over-spends.
To address the significant over-spend position in the Children & Families Budget, Cllr Stowe announced that the senior leadership team had established a budget working group, with further impetus provided by the Financial Recovery Oversight Group. The work of the two groups to align with the council’s Financial Recovery Strategy and Improvement Strategy by focussing on early intervention and aim to avoid the need for costly social care.
The Dedicated Schools Grant (DSG) was forecast to overspend by £28.456 million in 2022/23, including a deficit carry forward of £20.8 million, (high-needs), and an in-year deficit budget, (high needs), of £6.347 million. The county position reflected the national position. Cllr Stowe stated that the High Needs Strategy was in the implementation phase, with revised top-up banding systems being consulted on; a review and redesign of care pathways taking place, in addition to the setting up of digital systems to improve processes. This work supported the Department for Education programme of reviewing Local Authority expenditure from striving to deliver better value. The review to further assess local processes and plans and carry out data analysis. The analysis to identify cost implications and budget pressures, and consider what additional actions can be taken to resolve the deficit position from the application of improvement and management plans.
Cllr Stowe reported £6.772 million savings at the end of Quarter 2, (61.64% of the annual target), with a further £2.131 million savings forecast to be delivered by the end of the 2023 financial year, against a target of £10.987 million. A total of £2.520 million was forecast at risk of being delivered by the end of 2022/23, representing 22.93% of the annual target.
Cabinet noted the forecast outturn position for 2022/23 at £132.756 million, (against a budget of £150.974 million). This represented a forecast in-year slippage of £18.218 million.
Cllr Stowe proposed an increase to the overall capital programme of £1.209 ... view the full minutes text for item 6