Issue - meetings

Purpose of the report:

To provide details of the draft budget and medium-term financial strategy for scrutiny.

Witnesses:

Becky Rush, Cabinet Member for Finance and Resources

Clare Curran, Cabinet Member for Children and Families

Denise Turner-Stewart, Cabinet Member for Education and Learning

Mark Nuti, Cabinet Member for Communities

Rachael Wardell, Executive Director for Children, Families and Lifelong Learning

Marie Snelling, Executive Director for Customer and Communities

Susan Wills, Assistant Director for Cultural Services and Registrations

Rachel Wigley, Director – Finance Insights and Performance

Daniel Peattie, Strategic Finance Business Partner – Children, Families and Lifelong Learning

Nikki O’Connor, Strategic Finance Business Partner – Improvement and TPP/Resources

Mark Hak-Sanders, Strategic Finance Business Partner – Corporate

Key points raised in the discussion:

1. The Cabinet Member for Finance and Resources explained that the council’s draft Budget for 2022/23 contained a gap of £19.5 million, including a £2.2 million gap in the Children, Families and Lifelong Learning (CFLL) Directorate and a £8.6 million gap in the High Needs Block. There was a focus on self-funding opportunities within the Capital Programme, as well as those which would deliver revenue savings in the future. 
2. The Strategic Finance Business Partner – Corporate explained that the budget setting process was underpinned by core planning assumptions developed under the PESTLE Framework (political, environmental, social, technological, legal and economic factors). Funding projections were based on expected council tax, business rate and government grant income. The Local Government Finance Settlement was expected later in the week, which would establish central government funding and provide clarity on the council’s funding position. Each directorate had been asked to identify efficiencies to contribute towards closing the gap for 2022/23 and the medium-term. The Capital Programme was described as being at the limit of what the council could afford. Consultation with residents and stakeholders on draft proposals and Equality Impact Assessments would conclude at the end of December. The final budget was to be presented to Cabinet in January 2022 and approved by Cabinet in February 2022.
3. The Strategic Finance Business Partner highlighted that the budget setting process was built around the Community Vision 2030 and the council’s priority objectives. The draft corporate budgetary position presented net pressures of £71.1 million, which was expected to be offset by an assumed funding increase of £2.4 million and efficiencies of £49.8 million, leaving a net gap of £19.5 million to close. The pressures were largely associated with pay and contract inflation and increased demand for services. Efficiencies which had been rated as red (achievable but challenging and/or complex to deliver) accounted for £11.1 million of the overall efficiencies, similar to the £10.8 million in the 2021/22 budget.
4. At month seven of 2021/22, an overspend of £17 million for the directorate budget envelope was forecast. The overspend was largely across Adult Social Care (£3 million), CFLL (£7.1 million), and the DSG High Needs Block offset (£8.8 million). These were offset largely by an underspend in Environment, Transport and Infrastructure due to an improvement in waste prices. The overall council position at the end of the 2021/22 financial year was expected to be balanced, with  ...  view the full minutes text for item 45