Issue - items at meetings - Financial Position Update

Report of the Interim Executive Director for Finance & Resources (to follow).

1)        Note the forecast risk position for the General Fund as at month 6 (September), which indicates a budget pressure of £4.751m. This consists of £4.259m on council controlled budgets and £0.492m on the council’s share of NHS managed Section 75 services.

2)        Note the improvement targets for each service which must be achieved in full to enable the authority to achieve break-even on its General Fund budget.

3)        Agree the proposals and measures set out in the report and authorise officers to take all steps necessary or incidental to the implementation of the proposals.

67.1       The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Financial Position Update. The report set out the improved position of a £4.751m projected overspend following a robust review of forecast across all services which included tougher financial controls on recruitment, procurement and spending. The report set out measures to manage the remaining in-year overspend risk as well as managing ongoing pressures and links to decisions requested elsewhere on the agenda to address underlying issues in Adult Social Care.

67.2       The Chair addressed the Committee and explained that the administration was putting plans in place to ensure the Council’s finances were on a fair and resilient footing. Thanks were extended to opposition parties for understanding the need to hold the special meeting, and it was noted that other reports on the agenda were seeking to consult on two service areas. In early July the administration had instructed Officers and the report evidenced this was being effective, having almost halving the overspend since the controls had been brought in. Radical action would also need to be taken to ensure the most vulnerable in the city were protected. Despite the challenge it was considered this was the correct approach and would seek to create a platform for new ways of working with the city and residents.

67.3       Councillor A. Norman expressed her concern in relation to comments made by Members of the administration in the local press about the state of the Council’s finances; she expressed her view that such language amounted to scaremongering. Councillor Sykes noted his agreement with the comments made by Councillor A. Norman and added that such language could cause unnecessary panic and alarm. In response to these points Councillor Bewick stated his view that the current position of the Council’s finances was the result of decisions taken by the previous administration and the impact of reforms from Central Government.

67.4       In response to queries from Councillor Wealls the Executive Director for Children’s Services explained that there were prescribed circumstances for using funds from the dedicated schools grant in the general fund. In relation to increasing the number of in-house foster care places in the city it was clarified that there was work ongoing with an external organisation to try to increase this number in a new and different way to how this had been approached in the past. Increasing in-house places was the long-term financial apprach as there were significant financial savings through the use of in-house carers as opposed to agency. It was also clarified that the Child Review Board was still in operation.

67.5       The Executive Director for Adults’ Services also explained to Councillor Wealls that the directorate was able to use funds that had been allocated for reforms that had not come into effect this year, as Central Government had not asked for these to be returned.

67.6       In response to Councillor Sykes the Acting Executive Director for Environment, Development & Housing confirmed there was pressure on the temporary accommodation budget as this was demand lead; however, some lower cost lease accommodation was coming forward through the procurement exercise undertaken earlier in the year.

67.7       In response to Councillor Miller the Interim Executive Director for Finance & Resources confirmed that a decision had been taken by the Executive Leadership Team to share the burden of savings equally across all directorates.

67.8       In response to Councillor K. Norman the Executive Director for Adult’s Services explained that the resource allocation system was used when a service user had a range of personal needs; as services were moved to community based services it was envisaged the cost would reduce by approximately 3% across the board.

67.9       Councillor Hamilton highlighted the necessity to balance the budget and noted that whilst some directorates were underspending others were still significantly overspent. He noted the level of savings that needed to be achieved in 2016/17 and stated that any overspend this year would have to be added to savings targets for next.

67.10    Councillor Mac Cafferty expressed concern that the report had been circulated late given the importance of the matters; he went on to query the discretion that the report proposed to grant Officers in recommendation 2.3. He asked for assurance there would be Member oversight of this to help boost public confidence; he also recognised the necessity for service changes, but added this needed to be informed thorough equality impact assessments.

67.11    Councillor Mitchell stated that she considered the recommendation at 2.3 to be fairly standard in terms of the type of language used in financial reports. She added that there would be a full TBM report to the next normal meeting of the Committee which would allow for Member oversight and the purpose of bringing the paper to the special meeting was to seek cross-party support at the earliest opportunity.

67.12    In response to the points raised the Monitoring Officer clarified that the late report was in compliance with both legislation and the Council’s constitution, and the Interim Executive Director Finance & Resources added that the late report had been due to the availability of information relating to TBM 6. Any action taken in respect of recommendation 2.3 would be within existing Officer Delegations.

67.13    The Chair then put the recommendations to the vote.

67.14    RESOLVED – That the Committee:

1)        Note the forecast risk position for the General Fund as at month 6 (September), which indicates a budget pressure of £4.751m. This consists of £4.259m on council controlled budgets and £0.492m on the council’s share of NHS managed Section 75 services.

2)        Note the improvement targets for each service which must be achieved in full to enable the authority to achieve break-even on its General Fund budget.

3)        Agree the proposals and measures set out in the report and authorise officers to take all steps necessary or incidental to the implementation of the proposals.