Issue - meetings

RESOLVED:

That the report be noted, including the following:

1.         That the forecast revenue budget outturn for 2016/17 was £6.1m overspend, down from £15.0m last month, as set out in (paragraph 1 of the submitted report.

2.         That the forecast efficiencies and service reductions for 2016/17 were £62.9m, the same as last month, as set out in paragraph 45 of the submitted report.

3.         That the Section 151 Officer’s commentary and the Monitoring Officer’s Legal Implications commentary, as set out inparagraphs16 to 20 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 decision on this item may be called in by the Council Overview Board]

The Leader of the Council presented the budget monitoring report covering the period upto the 30 November 2016.

He said that in September, several significant financial risks crystallised resulting in an unprecedented forecast outturn of £22.4m overspend for this financial year.   However, by the end of October, the forecast outturn position had improved to £15.0m and by the end of November, it has improved again to £6.1m overspend, which was much better.   However, this year’s budget was still not balanced.  He said that there was still some way to go before a sustainable Medium Term Financial Plan was achieved.

He informed Cabinet that there were many reasons why the County Council needed to keep working to restore its financial position.  Not least among them, as again pointed out in the Section 151 Officer’s and the Monitoring Officer’s commentaries was the requirement of the Local Government Finance Act to ensure the County Council’s spending did not exceed its resources.

He advised Members that cost, demand and funding pressures had meant that there were overspends in Adult Social Care, Children’s Services and Schools & SEND (Special Education Needs & Disabilities) and that many of these pressures were preventing the Council from implementing its savings plans and contributed to the £20m shortfall against the £83m savings target for 2016/17.   These pressures were having a substantial and detrimental impact on the Council’s medium term financial position, which was not yet sustainable.

The Chief Executive and Director of Finance had agreed a series of actions with Service Directors to review all spending plans and consider all options for managing service demand more effectively and that, wherever sensible, the Cabinet would not agree further spending commitments until a balanced budget was assured and progress had been made towards a sustainable Medium Term Financial Plan.

He said that the improvement in November’s financial position was due to reducing the costs of the Council’s capital assets.   October’s improvement was from higher Investment Strategy income, lower interest charges and extra savings in Property and Orbis but it remained imperative that improvements were found across the board.

Given the gravity of our situation, it was vital Members and officers continued their actions to identify and implement ways to reduce the overspend in 2016/17 and address the issues affecting the Council’s financial sustainability for 2017/18 and subsequent years.

Finally, he urged the Cabinet and other leading Members to continue to bring the Council’s budget issues to the attention and understanding of Surrey’s MPs because the peak forecast £22.4m overspend closely matched the “shock” reduction in 2016/17 Revenue Support Grant which the Government had imposed upon the Council less than a year ago.

Other Cabinet Members were given the opportunity to highlight key points and issues from their positions.

RESOLVED:

That the report be noted, including the following:

1.       That the forecast revenue budget outturn for 2016/17 was £6.1m overspend, down from £15.0m last month, as set out in paragraph 1 of the submitted report.

2.       That the forecast efficiencies and service  ...  view the full minutes text for item 256