Due to a prejudicial interest, Councillor Paul Stuart chose to leave the room for the duration of the agenda item. Councillor Jean Robinson took the seat as Chair.

The Director of Finance presented the report which set out the financial monitoring information for the Council as at Quarter 1 (30 June) of 2024/25.

The report provided Members with an overview of budget performance, including progress on the delivery of the 2024/25 saving programme and a summary of reserves and balances, and enabled the Committee to take ownership of the budgets and provide robust challenge and scrutiny to Officers and where appropriate, Committees on the performance of those budgets.

At the end of Quarter 1, it was reported that there was a forecast adverse position of £12.493m on Directorate spend. This position was based on activity to date, projected trends in income and expenditure and changes to Council funding.

It was further reported that this was a serious financial position for the Council that needed to be significantly mitigated in-year through all available measures to reduce expenditure and generate cost savings.

The source of the overspend reflected the outturn position from 2023/24 for which an action plan had been developed and implemented. This was designed to address the main issues generating the adverse position and progress will be reported on this in all future reports and to the relevant committees. It was noted, however, that the majority of the overspend was a consequence of increased demand and costs for social care services and would not be easily resolved. Whilst the overall position could currently largely be managed in-year by utilising the contingency budgets, applying flexible use of capital receipts to fund transformational revenue spend, and reprovisioning of earmarked reserves, it was not a sustainable position going forward and would adversely impact budget planning for 2025/26.

Members queried the cost of local residential care and SEND support, especially for Care Leavers. It was noted that this would be answered by the Director of Children’s Services at the Children, Families and Education Committee, where the overspend would be addressed.

Resolved – That

1.  the Directorate forecast adverse position of £12.493m presented at Quarter 1, managed by utilising contingency budgets, Flexible Use of Capital Receipts (FUCR) and reprovision of earmarked reserves, be noted;

2.  the progress on delivery of the 2024/25 savings programme at Quarter 1 be noted;

3.  the forecast level of reserves and balances at Quarter 1 be noted

4.  the forecast release of the Wirral Growth Company (WGC) earmarked reserve to fund the regeneration works, as detailed in paragraph 3.23 of the report, be noted; and

5.  the budget virements due to administrative changes in the allocation of Service budgets between directorates, as detailed in paragraph 3.35, be noted.