Agenda item

RESOLVED:

That the report be noted, including the following:

1.         That services forecast a £1.1m revenue budget variance at year end, as set out in Annex 1, paragraph 1 of the submitted report.

2.         That services forecast to achieve £63.8m efficiencies and service reductions by year end, as set out in Annex 1, paragraph 28 of the submitted report.

3.         That the total forecast capital expenditure for 2015/16, including long term investments, be £183.2m, as set out in Annex 1, paragraph 38 of the submitted report.

4.         The quarter end positions for: balance sheet, earmarked reserves, debt and treasury management, as set out in Annex 1, paragraphs App 7 to App 22 of the submitted report.

5.         That a virement of £7.1m to reflect direct schools grant funding in relation to delays in academy conversions and updates on other direct school grants estimates, as set out in Annex 1 paragraphs 3 to 5 of the submitted report, be approved.

6.         That the use of Central Government Care Act new burdens funding by Adult Social Care to manage increased demand and new Care Act responsibilities that are causing pressure on the budget, as set out in Annex 1, paragraphs 10 and 11 of the submitted report be approved.

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 introduced the budget monitoring report for the second quarter of the 2015/16 financial year and stated that it continued to see the Council face intense pressure and hard choices as service demand increased and funding declines.

He highlighted that table 1 of the submitted report set out the current budget and all approved adjustments and that the impact was that the Council still needed to draw £3.7m from the Budget Equalisation Reserve to balance 2015/16. He went on to say that the majority of services forecast a balanced outturn or a small underspend.

He said the Council’s four key drivers to ensure sound governance in managing finances and providing value for money which include:

1.     Keep any additional call on the council taxpayer to a minimum

That the current forecast end of year revenue position was for an underspend of £1.1m and that he was confident Cabinet’s support for managers’ actions would make this the sixth consecutive year the Council had a small underspend or balanced outturn across the Council.

2.     Continuously drive the efficiency agenda

That at the end of September, services forecast delivering £63.8m efficiencies and of this, £31m had either already been implemented or was on track, £10m had some issues, £19m was additional in year or one off savings and £4m was considered to be at risk.

3.     Reduce the Council’s reliance on council tax and government grant income.

That reducing reliance on government grants and council tax was key to balancing the Council’s budgets over the longer term. The Revolving Infrastructure and Investment Fund was part of that strategy and forecasted investing another £19m by the year end.

4.     Continue to maximise our investment in Surrey        

That the Council’s £696m capital programme for 2015-20, not only improved and maintained services, it was also a way of investing in Surrey and generating income for the Council. The forecast capital programme was for £183m investment in 2015/16.

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

RESOLVED:

That the report be noted, including the following:

1.           That services forecast a £1.1m revenue budget variance at year end, as set out in Annex 1, paragraph 1 of the submitted report.

2.           That services forecast to achieve £63.8m efficiencies and service reductions by year end, as set out in Annex 1, paragraph 28 of the submitted report.

3.           That the total forecast capital expenditure for 2015/16, including long term investments, be £183.2m, as set out in Annex 1, paragraph 38 of the submitted report.

4.           The quarter end positions for: balance sheet, earmarked reserves, debt and treasury management, as set out in Annex 1, paragraphs App 7 to App 22 of the submitted report.

5.           That a virement of £7.1m to reflect direct schools grant funding in relation to delays in academy conversions and updates on other direct school grants estimates, as set out in Annex 1 paragraphs 3 to 5 of the submitted report, be approved.

6.           That the use of Central Government Care Act new burdens funding by Adult Social Care to manage increased demand and new Care Act responsibilities that are causing pressure on the budget, as set out in Annex 1, paragraphs 10 and 11 of the submitted report be approved.

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.