Issue - meetings

Report of the Executive Director of Resources

The Cabinet considered a report of the Executive Director of Resources which provided the forecast outturn position for revenue and capital expenditure and the Council’s treasury management activity as at the end of December 2016.

Cabinet approved the City Council's revenue budget of £233.4m on the 23rd February 2016 and a Directorate Capital Programme of £123.2m.  The report submitted identified the position at the third quarter of 2016/17, to the end of December 2016

The headline revenue forecast for 2016/17 was an over spend of £4.8m. The Cabinet noted that the position had improved since Quarter 2 when it stood at £7.1m.  At the same point in 2015/16 there was a projected overspend of £3.3m.

Although the level of overspend had lessened since quarter 2, much of the movement had been the result of windfall income and movements in technical areas. Nevertheless, the pattern of budgetary control variations in previous years would indicate that the position would improve further towards the year-end and officers had been instructed to identify all appropriate ways of minimising the final overspend position.

The underlying expenditure pressures, overwhelmingly within adults and childrens social care, had continued at previous unsustainable levels.  Full account had been taken of the underlying budget position moving into 2017/18 within the Budget Setting report.

Capital spending was projected to be £81m for the year, a net decrease of £7.9m on the Quarter 2 position.  This decrease in the Capital Programme included £8.3m of expenditure that had been rescheduled into future years.

The Cabinet noted that the report had been considered by the Audit and Procurement Committee at their meeting on 20^th February 2017 and that they had requested the Cabinet to establish the Council’s current performance in relation to “Bed Blocking” (delayed transfers of care) in respect of Adult Social Care.  The Cabinet requested that officers prepare a report on this matter for consideration at future meetings of Cabinet and the Audit and Procurement Committee.

RESOLVED that the Cabinet:-

1.  Note the forecast revenue overspend at Quarter 3.

2.  Endorse the strategy set out in section 5.1 for dealing with the budgetary challenges in the current and future years.

3.  Approve the revised capital estimated outturn position for the year of £81m incorporating: £0.4m net increase in spending relating to approved/technical changes (Appendix 2) and £8.3m net rescheduling of expenditure into 2017/18 (Appendix 4).

4.  Having noted the comments of the Audit and Procurement Committee, request officers to submit a report on the Council’s current performance in relation to “Bed Blocking” (delayed transfers of care) in respect of Adult Social Care to future meetings of the Cabinet and the Audit and Procurement Committee.