Agenda item

RESOLVED:

1.       That the forecast revenue budget for 2016/17 is a -£1.5m underspend
(as set out in Annex, paragraph 1 of the submitted report) be noted.

2.       That the forecast efficiencies and service reductions for 2016/17 is £83.5m
(as set out in Annex, paragraph 19 of the submitted report) be noted.

3.       That the quarter end positions for: balance sheet, earmarked reserves, debt and treasury management (as set out in Annex, Appendix paragraphs App 8 to App 22 of the submitted report) be noted.

4.       That -£55.4m capital expenditure from 2016/17 be re-profiled into the remainder of the 2016-21 capital programme (Annex, paragraph 24 of the submitted report).

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 Leader of the Council presented the budget monitoring report for the first quarter of the 2016/17 financial year, that covered the period up to 30 June 2016. He said that overall, a forecast of £1.5m underspend was expected and that services were forecasting a balanced outturn but it was still early in the financial year and where necessary, services were developing plans to ensure they achieved a balanced outturn.

He stated that achieving these savings was important to ensure the Council maintained a balanced budget in 2016/17 and achieved a sustainable financial position in future years.

With regard to revenue, Members were informed that the current forecast end of year revenue position was for an £1.5m underspend which would make this the seventh consecutive year that there would be a small underspend or balanced outturn across the Council. He did however highlight that Adult Social Care had identified a risk of £1.1m overspend but that the Adult Social Care leadership team was taking a rigorous approach to mitigating this risk.

On efficiencies, the Leader informed Members that at the end of June, services forecast delivering all of their £83.5m efficiencies. He stressed the importance of achieving these efficiencies to ensure the Council maintained a balanced budget this year and financial sustainability in the future. He went on to say that of the £83.5m forecast efficiencies, £36m had either already been implemented or was on track, £33m had some issues, and £14m was considered to be at risk.

To summarise, the Leader explained on the capital summary that the capital programme for 2016-21 was £638m and this would, improve and maintain services, invest in Surrey and generate income for the Council. He explained that £55m from 2016/17 would be re-profiled into the 2016-21 programme due to costs being lower, the impact of a new free school on the school places programme and rescheduled estimates of need. He also considered that reducing reliance on government grants and council tax was key to balancing the budgets over the longer term and that the Revolving Infrastructure and Investment Fund was part of this strategy. He finished by saying that the Council forecast making nearly £90m longer term investments in this financial year.

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

RESOLVED:

1.       That the forecast revenue budget for 2016/17 is a -£1.5m underspend (as set out in Annex, paragraph 1 of the submitted report) be noted.

2.       That the forecast efficiencies and service reductions for 2016/17 is £83.5m
(as set out in Annex, paragraph 19 of the submitted report) be noted.

3.       That the quarter end positions for: balance sheet, earmarked reserves, debt and treasury management (as set out in Annex, Appendix paragraphs App 8 to App 22 of the submitted report) be noted.

4.       That -£55.4m capital expenditure from 2016/17 be re-profiled into the remainder of the 2016-21 capital programme (Annex, paragraph 24 of the submitted report).

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 Cabinet Associate for Adult Social Care, Wellbeing and Independence left the meeting at 3.05pm]