Decision details

A deputation was made by Councillor Gerald Vernon-Jackson, Leader of the Opposition, who was worried by this report with a projected overspend of almost £6 million.  He had reviewed the previous monitoring reports within the 11 years of Liberal Democrat administration and he stated that there had been underspends in ten of these years.  He therefore questioned the financial competence of the present administration and felt that the other budget reports (on this agenda) showed that there were cuts that would affect the most vulnerable.

Chris Ward, the Director of Financial Services and Section 151 Officer introduced his report which at this stage showed a forecast overspend of £3.2 million with the main areas of Children & Education £2.3 million and Health & Social Care £2.2 million but there were offset savings due to the Ferry Port income and changes in the way debt was funded which brought this down to £3.2 million.

RECOMMENDED to Council that:

(i)         The forecast outturn position for 2015/16 be noted:

(a)       An overspend of £2,695,900 before further forecast transfers from/(to) Portfolio Specific Reserves

(b)       An overspend of £3,123,300 after further forecast transfers from/(to) Portfolio Specific Reserves.

(ii)        Members note that any actual overspend at year end will in the first instance be deducted from any Portfolio Specific Reserve balance and once depleted then be deducted from the 2016/17 Cash Limit.

(iii)       Directors, in consultation with the appropriate Cabinet Member, consider options that seek to minimise any forecast overspend presently being reported and prepare strategies outlining how any consequent reduction to the 2016/17 Portfolio cash limit will be managed to avoid further overspending during 2016/17.