Issue - meetings

That the report be noted, including the following:

1.         The council forecasts an improved revenue position for 2014/15 of £7.9m underspend, up from £3.5m at 31 December 2014, as set out in Annex1, paragraph 3 of the submitted report. (This position includes the need to fund planned commitments that will continue beyond 2014/15)

2.         Services forecast achieving an improved position on efficiencies and service reductions by year end of £72.7m, as set out in Annex1, paragraph 70 of the submitted report.

3.         The council forecasts investing £202.3m through its capital programme in 2014/15, as set out in Annex1, paragraphs 74 and 75 of the submitted report.

4.       Services’ management actions to mitigate overspends, as set out throughout Annex1 of the submitted report, be noted.

Reasons for Decisions:

This report is presented to comply with the agreed policy of providing a monthly budget monitoring report to Cabinet for approval and action as necessary.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Leader of the Council presented the budget monitoring report for month ten of 2014/15, the period up to 31 January 2015 and said that the forecast revenue position was currently an underspend of £7.9m at year end, an improvement on December’s forecast outturn of £3.5m underspent.

He said that this was the fifth consecutive year the Council had delivered more than £60m of savings for the people of Surrey and that the Council continued to face demand growth and funding reductions.   As such, the financial strategy had four key drivers to ensure sound governance in managing the finances and to provide value for money.

These were:

(1)     To keep any additional call on the council taxpayer to a minimum

Currently, the end of year revenue forecast was for services to underspend by £7.9m and that this was the fifth consecutive year that the Council had a small underspend or a balanced budget. He said that the Chief Executive and Director of Finance would  continue to hold support sessions with Heads of Service to help maintain the rigour of services’ savings plans and to continue to report their progress at the Council’s all Member briefings.

(2)     To continuously drive the efficiency agenda

He reported that at the end of January, Services forecast delivering efficiencies of £72.7m against a target of £72.3m and of the £72.7m forecast efficiencies, 88% had either already been achieved or were on track.

(3)     To develop a funding strategy to reduce the Council’s reliance on council tax and government grant income.

He said that reducing reliance on government grants and council tax was key to balancing the budgets over the longer term and the Revolving Infrastructure and Investment Fund had already invested £6.4m this year and forecast delivering £0.5m net income.

(4)     To continue to maximise the Council’s investment in Surrey     

Finally, he said that the Council’s capital programme not only improved and maintained the Council’s services, it was also a way of investing in Surrey and generating income for the Council and that the reprofiled capital programme planned £780m investment for 2014-19, including £206m in 2014/15. The current forecast was to invest £195m in the Council’s mainstream capital programme, with £7.5m in long term investments.

He also confirmed that any carry forward requests from Services would be considered by Cabinet at their meeting in April.

Other Cabinet Members were invited to highlight the key points and issues from their portfolios, as set out in the Annex to the report.

The Cabinet Member for Schools and Learning was pleased to report that the Government had awarded Surrey County Council more than £41m in extra funding, as part of the Priority Schools Building Programme.

RESOLVED:

That the report be noted, including the following:

1.         The council forecasts an improved revenue position for 2014/15 of £7.9m underspend, up from £3.5m at 31 December 2014, as set out in Annex1, paragraph 3 of the submitted report. (This position includes the need to fund planned commitments that will continue beyond  ...  view the full minutes text for item 38