Agenda item

That the report be noted including the following:

1.      The Council forecasts an improved revenue position for 2014/15 of £3.5m underspend, up from £2.7m at 30 November 2014, as set out in Annex 1, paragraph 3 of the submitted report. (This forecast includes the need to fund planned commitments that will continue beyond 2014/15).

2.      Services forecast achieving efficiencies and service reductions by year end of £69.0m, as set out in Annex 1, paragraph 67 of the submitted report.

3.      The Council forecasts investing £202m through its capital programme in 2014/15, as set out in Annex 1, paragraphs 71 and 72 of the submitted report.

4.      The quarter end balance sheet, as at 31 December 2014, and movements in earmarked reserves and debt outstanding, as set out in Annex 1 paragraphs 74 to 78 of the submitted report, be noted.

5.    Services’ management actions to mitigate overspends, as set out in Annex 1 of the submitted report, be noted.

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 decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Leader of the Council presented the budget monitoring report for month nine of 2014/15, the period up to 31 December 2014 and said that the forecast revenue position was an underspend of £3.5m at year end, an improvement on November’s forecast outturn of £2.7m underspend.

He also said that the forecast for achieving efficiencies for the Council was £69.0m and this was the fifth consecutive year that more than £60m of savings had been delivered for Surrey residents. The overall level of risk for efficiencies’ projects had improved again during December, with only 2% of the efficiencies’ projects now facing severe challenges to implementation.

He reminded Members that the financial strategy had four key drivers which ensured sound governance in managing finances and providing value for money for the Council.

These were:

(1)     To keep any additional call on the council taxpayer to a minimum

·      Currently, the end of year revenue forecast was for services to underspend by £3.5m. Also, that the Chief Executive and Director of Finance would continue to hold support sessions with Heads of Service to help maintain the rigour of services’ savings plans and they would continue to report progress at the Council’s all Member briefings.

(2)    To continuously drive the efficiency agenda

·      He reported that at the end of November, services forecast delivering efficiencies of £69.0m against a target of £72.3m and this was a £1.0m reduction on the position last month. Of these £69.0m forecast efficiencies, 85% have either already been achieved or are on track, 12% have some issues and less than 3% were considered to be at risk.

(3)    To develop a funding strategy to reduce the council’s reliance on council tax and government grant income.

·      He said that reducing reliance on government grants and council tax was key to balancing the Council’s budgets over the longer term and the Revolving Infrastructure and Investment Fund had already invested £6.0m this year and forecast delivering £0.5m net income.

(4)     To continue to maximise our investment in Surrey          

·      The council’s capital programme not only improved and maintained services, it was also a way of investing in Surrey and generating income for the council and the reprofiled capital programme planned £780m investment for 2014-19, including £205m in 2014/15.   The current forecast was to invest £195m in the mainstream capital programme and £7.5m in long term investments.

Finally, he drew attention to the details in relation to the balance sheet and earmarked reserves, as set out in the Annex to this report because it was the end of quarter 3.

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.      The Council forecasts an improved revenue position for 2014/15 of £3.5m underspend, up from £2.7m at 30 November 2014, as set out in Annex 1, paragraph 3 of the submitted report. (This forecast includes the need to fund planned commitments that will continue beyond 2014/15).

2.      Services forecast achieving efficiencies and service reductions by year end of £69.0m, as set out in Annex 1, paragraph 67 of the submitted report.

3.      The Council forecasts investing £202m through its capital programme in 2014/15, as set out in Annex 1, paragraphs 71 and 72 of the submitted report.

4.      The quarter end balance sheet, as at 31 December 2014, and movements in earmarked reserves and debt outstanding, as set out in Annex 1 paragraphs 74 to 78 of the submitted report, be noted.

5.    Services’ management actions to mitigate overspends, as set out in Annex 1 of the submitted report, be noted.

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.