Agenda item

Purpose of the report: 

This report presents the revenue and capital budget monitoring up-date for January 2014 with projected year-end outturn.

Declarations of interest: None.

Witnesses:

Kevin Kilburn, Deputy Chief Finance Officer

Peter Martin, Deputy Leader of the Council

Key points raised during the discussion:

1.    The Vice-Chairman of the Committee gave a summary of the discussions of the Performance & Finance Sub-Group. A report of these discussions was tabled at the meeting, and is attached to these minutes. The Committee discussed the role of Family, Friends and Community Support, and it was recognised that a number of measures were being explored as to how this work would meet its challenging saving targets for 2014/15.

2.    The Committee explored concerns around the financial pressures faced by the Council as a result of the winter flooding. Discussions were ongoing, but one Member estimated there could be a pressure of £15 million in the capital budget for Highways & Infrastructure. The Bellwin scheme thresholds for emergency assistance related specifically to meeting revenue costs of response in respect of threats to life, health and property, and officers commented that these would be used to meet the cost of additional service demand across directorates as a result of the flooding.

3.    The Committee was informed that meeting the financial pressures created by the flood-recovery would consist of three possible options: an increase in support from central government, the re-prioritisation of the Medium Term Financial Plan or an increase in borrowing. It was recognised by the Committee that any increase in borrowing would have an impact on revenue costs. The Committee discussed the potential implication of a re-prioritisation of capital expenditure, and a number of concerns were expressed about the potential implications this might have on the delivery of Project Horizon. The Committee also commented that central government assurances had raised public expectation about how local government would meet the additional demand linked to the flooding.

Recommendations:

a)    That, as a matter of urgency, the Cabinet considers how the Council will fund the cost of repairs required as a result of the recent flooding in the County, including the option to approve additional capital borrowing in 2014/2015, with the interest payments arising from the loan in 2014/2015 and future years to be met from within the Highway & Infrastructure Directorate’s revenue budget.

Action by: Cabinet

b)    That the Cabinet accelerate the Family, Friends and Community Support programme from April 2014 to increase capacity using an Invest to Save bid to review open cases.

Action by: Cabinet

c)    That the effectiveness of voluntary sector grants be reviewed to ensure, where appropriate, these align with and support the objectives of the Family, Friends and Community Support programme.

Action by: Cabinet

d)    That initiatives which have the potential to increase value for money be discussed with providers.

Action by: Cabinet

e)    That efforts to recruit and retain qualified staff to unfilled social worker posts be redoubled.

Action by: Cabinet

f)     That the Committee receive a further report outlining the options explored in relation to meeting the financial pressures created by flood-recovery. This report will be brought to the meeting on 2 April 2014.

Action by: Deputy Chief Finance Officer

Actions/further information to be provided:

None.

Committee Next Steps:

None.