Issue - meetings

The purpose of the report by the Director of Finance & Revenues is to update members on the current Revenue Budget position of the Council as at the end of the first quarter for 2019/20 in accordance with the proposals set out in the “Portsmouth City Council - Budget & Council Tax 2019/20 & Medium Term Budget Forecast 2020/21 to 2022/23” report approved by the City Council on the 12th February 2019.

RECOMMENDED that:

(i) The forecast outturn position for 2019/20 be noted:

(a) An overspend of £2,725,000 before further forecast transfers from/(to) Portfolio Specific Reserves & Ring Fenced Public Health Reserve

(b) An overspend of £2,474,800 after further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve.

(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 2020/21 Cash Limit.

(iii) Members note that the overall financial forecast for Quarter 1 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 £4,034,100 and the extent to which this cannot be remedied in the medium term will add to the Council's £2.5m per annum savings requirements for future years.

(iv) 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 2020/21 Portfolio cash limit will be managed to avoid further overspending during 2020/21.

i) The forecast outturn position for 2019/20 was noted:

(a) An overspend of £2,725,000 before further forecast transfers from/(to) Portfolio Specific Reserves & Ring Fenced Public Health Reserve

(b) An overspend of £2,474,800 after further forecast transfers from/(to)

Portfolio Specific Reserves & Ring Fenced Public Health Reserve.

(ii) Cabinet Members noted 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 2020/21 Cash Limit.

(iii) Cabinet Members noted that the overall financial forecast for Quarter 1 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 £4,034,100 and the extent to which this cannot be remedied in the medium term will add to the Council's £2.5m per annum savings requirements for future years.

(iv) 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 2020/21 Portfolio cash limit will be managed to avoid further overspending during 2020/21.