Agenda item

RESOLVED:

1.    That the Council’s overall revenue and capital budget positions as at 30 September 2018 be noted.

2.    That the changes to the structure of the Children, Families & Learning directorate be noted.

3.    That Farnham Road rail bridge be added to the capital programme.

4.    That the £1.8m capital virements to transfer funds to Local Enterprise Partnerships budgets (paragraph 68) be approved.

5.    That the Leader writes a letter to the Secretary of State for Education, Damian Hinds, setting out how unhappy the Council was with having to hand over public assets to academies as well as any excess funds.  On top of this the Council retained the deficits for those forced into conversion and the question as to why this should continue would be put.  A copy of this letter would also be sent to Lord Porter of the Local Government Association.

Reason for Decision:

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 Corporate Overview Select Committee]

The Leader introduced the report that set out the Council’s financial position as at 30 September 2018, the end of period six.  The forecast revenue position was for an underspend against the budget of £4m, which would reduce the need to use reserves to support this year’s budget to £17m.  This was substantially due to the success of management actions to reduce expenditure by £24m this year as part of the Council’s £40m in-year cost reduction programme.  He also reported that the capital programme was on track, with a small forecast in-year underspend.

The Leader went on to say that the council was still facing some significant spending pressures, especially in the area of Special Educational Needs & Disabilities.  Continued exceptional demand for these services was leading to an overspend of £15m against this budget.  However, through the success of the in-year management actions the Council had achieved enough to off-set these pressures.  This was not to be complacent as many of these savings would not continue into future years and the Council remained focused on ensuring that it had a sustainable budget.  This would enhance the financial resilience and put the Council in a better position to face the challenges and deal with the funding uncertainties and service pressures of future years and ensure Surrey’s residents have sustainable local services.

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

There was some discussion around Schools planning and leadership projecting a +£0.5m pressure for two sponsored academy conversions that were likely to have deficits.  The Cabinet Member for All-Age Learning explained that where a school was forced to convert was when the Council had to pick up the deficit and not for schools that converted of their own accord.  The Leader offered to write a letter to the Secretary of State for Education, Damian Hinds, setting out how unhappy the Council was with having to hand over public assets to academies as well as any excess funds.  On top of this the Council retained the deficits for those forced into conversion and the question as to why this should continue would be put.  A copy of this letter would also be sent to Lord Porter of the Local Government Association.

RESOLVED:

1.    That the Council’s overall revenue and capital budget positions as at 30 September 2018 be noted.

2. That the changes to the structure of the Children, Families & Learning directorate be noted.
3. That Farnham Road rail bridge be added to the capital programme.
4. That the £1.8m capital virements to transfer funds to Local Enterprise Partnerships budgets be approved.

5.    That the Leader writes a letter to the Secretary of State for Education, Damian Hinds, setting out how unhappy the Council was with having to hand over public assets to academies as well as any excess funds.  On top of this the Council retained the deficits for those forced into conversion and the question as to why this should continue would be put.  A copy of this letter would also be sent to Lord Porter of the Local Government Association.

Reason for Decision:

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.

Mr Colin Kemp left the room for less than a minute during discussion of this item.