Councillor Phil Davies introduced a report by the Director of Resources which set out the revenue position for 2014/15, which at Month 7 (October 2014) showed a projected General Fund overspend of £2.25 million (0.8% of the net revenue budget). This was an improvement compared with a projected overspend reported at month 6 of £2.69 million as detailed in graph 1.  The Cabinet noted that the improvement was largely a result of an increased projected underspend within Regeneration and Environment which was due to savings made in advance and efficiencies from supporting people contracts.

The Cabinet was informed that the projected overspend originated, in the main, from the Families and Wellbeing Directorate.  Adult Social Services continued to project a £2.7 million overspend. This was mainly due to slippage or non-delivery of in year savings and demand pressures. The Children’s area of the Directorate was also forecasting an overspend of £552,000. This was largely due to the non-achievement of in year transport savings as well as costs of external placements. A series of management actions were taking place within the Directorate to help compensate and/or limit any variances.

Councillor Davies informed that he was glad that the Council was continuing to drive down overspend.  It was now standing at £2.25 million as opposed to £17 million in 2012.  He thanked Cabinet Members and Officers for their efforts in bringing this about.

RESOLVED: That

(1)  in Month 7 (October 2014), it be noted that the full year forecast projects a gross General Fund overspend of £2,249,000; and

(2)  the risks relating to non delivery of savings as detailed within the report and the continued requirement for mitigation and actions to be identified be noted. 

Councillor Phil Davies introduced a report by the Director of Resources which set out the revenue position for 2014/15, which at Month 6 (September 2014) showed a projected General Fund overspend of £2.69 million (1% of the net revenue budget).  It was noted that this was an improvement compared with a projected overspend reported at month 5 of £3.19 million. 

The Cabinet also noted that the projected overspend originated in the main from the Families and Wellbeing Directorate.  Adult Social Services were currently projecting a £2.7 million overspend.  This was mainly due to slippage or non-delivery of in-year savings and demand pressures.  The Children’s area of the Directorate was also forecasting an overspend of £545,000.  This was mainly due to non-achievement of in year transport savings as well as the costs of external residential placements.  It was noted that a series of management actions were taking place within the Families and Wellbeing Directorate to help compensate and/or limit any variances. 

Appended to the report was the Revenue Monitoring and Reporting Timetable 2014/15, the General Fund Revenue Budget 2014/15 agreed by the Council at its meeting on 25 February 2014, Monitoring Full Details, Growth and Risk, Income and Debt and Accounts Receivable.

RESOLVED: That

(1)  the Cabinet notes that at Month 5 (August 2014), the full year forecast projects a General Fund overspend of £3,189,000; and

(2)  the Cabinet also notes the risks relating to non delivery of savings as detailed within the report and the continued requirement for mitigation and actions to be identified.