Issue - meetings

Purpose of report

To inform the Cabinet Member of the revenue expenditure position in respect of the portfolio cash limit and capital programme for the financial year 2017-18. This report sets out the budget position and contributing factors to the final portfolio cash limit overspend at the end of the year; together with an initial financial projection for 2018/19.

RECOMMENDED that the Cabinet Member:

(1)  Notes the Children and Families Portfolio financial outturn position for 2017/18 of £3.383m in excess of the approved cash limit position.

(2)  Notes the current expectation that overspends represent a first call against the following year cash limit allocation.

(3)  Notes the ongoing budget pressures within the portfolio, as highlighted in the report, and supports the ongoing process of budget review and realignment designed to reduce the projected overspend position within the area of Children's Social Care and Safeguarding.

(4)  Notes that the capital programme spending is line with the approved capital budget.

(TAKE IN REPORT)

The report was introduced by Graham Smith, Group Accountant. 

Councillor Wood noted that the new administration had inherited this budget however in his view the budget figure for placements has not been adequately serviced.  He was pleased that the placement costs had been broken down in table 2 as the issue is mainly in the placements. He felt it was important to understand the principle of each of these units so they can be delivered at the best rate.  This will continue to be monitored. 

In response to a question from Councillor Brent, Mrs Newman, Deputy Director Children and Families Services said that in relation to the work that Newton Consultants undertook it was clear that Portsmouth is spending significantly less on children than other authorities, but still achieving good results.  Portsmouth is one of the lower spending authorities in the UK.  Councillor Wood said the council needed to be careful that the low spend does not drift into not spending enough and this would be a fine balance. 

DECISIONS: The Cabinet Member:
(1) Noted the Children and Families Portfolio financial outturn position for 2017/18 of £3.383m in excess of the approved cash limit position.

(2) Noted the current expectation that overspends represent a first call against the following year cash limit allocation.

(3) Noted the ongoing budget pressures within the portfolio, as highlighted in the report, and supports the ongoing process of budget review and realignment designed to reduce the projected overspend position within the area of Children's Social Care and Safeguarding.

(4) Noted that the capital programme spending is line with the approved capital budget.