Decision details

Budget Monitoring 2018/19 to end of September (Quarter 2)

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No


(i) The forecast outturn position for 2018/19 was noted:

(a) An overspend of £5,721,200 before transfers from/(to) Portfolio


(b) An overspend of £4,465,200 after transfers from/(to) Portfolio Reserves


(ii) Members noted that any actual overspend at year end will in the first instance be deducted from any Portfolio Reserve balance and once depleted then be deducted from the 2019/20 Cash Limit.


(iii) Members noted that the overall financial forecast for Quarter 2 for the whole

Council is a serious cause for concern with significant forecast overspends in

the highest spending areas of Children's and Adult Social Care which in

aggregate amount to £8,610,400.


(iv) Members noted that the underlying structural deficit which is forecast to

continue into future years amounts to £5.5m. The extent to which this cannot

be remedied in the medium term will add to the Council's current forecast £4m

per annum savings requirements for future years.


(v) Members noted that some additional funding from Government has recently been announced for Adults in 2018/19 and for both Adults and Children's Social Care in 2019/20 to help alleviate financial pressures nationally across the system amounting to £890,400 in 2018/19 and £2,411,500 in 2019/20, but it is not yet clear if this funding will continue beyond 2019/20 and therefore whether it can be used on an ongoing basis to part remedy the combined underlying budget deficits of £5.5m.


(vi) 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 2019/20 Portfolio cash limit will be managed to avoid further overspending during 2019/20.

Report author: Julian Pike

Publication date: 05/12/2018

Date of decision: 04/12/2018

Decided at meeting: 04/12/2018 - Cabinet

Accompanying Documents: