Issue - items at meetings - Targeted Budget Management (TBM 2)

Report of the Executive Director for Finance & Resources (copy attached).

(1)               That the forecast outturn position for the General Fund, which is an overspend of £3.388m be noted;

(2)               That the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.123m be noted;

(3)               That the forecast outturn position for the Dedicated Schools Grant which is an underspend of £0.208m be noted;

(4)               That the forecast outturn position on the capital programme b noted;

(5)               That the following changes to the capital programme be approved

(i) The new schemes as set out in Appendix 3.

30.1         The Executive Director for Finance & Resources introduced the report which set out the forecast outturn position as at Month 2 on the council’s revenue and capital budgets for the financial year 2013/14.  She noted that am overspend was currently forecast, which was partly due to the pressures identified on the community care budget and under-achievement in regard to the voluntary severance scheme and because of the early period of the financial year.

30.2         Councillor Littman stated that it was an early forecast and it was likely to change as the year progressed.  He noted that there was good news in regard to the level of capital receipts and that it was intended to be as open and transparent about the budget position as possible.

30.3         Councillor A. Norman questioned the fact that there had been a significant change from an underspend to a projected overspend within a couple of months and whilst pressures such as those on the community care budget were known, and the unachieved savings from the voluntary severance scheme disappointing, it was concerning to be forecasting an overspend at this stage.

30.4         Councillor Mitchell stated that it was unusual to have an overspend in one area so early into the financial year and she had questioned the level of savings that could be achieved in Adult Care.  She also queried where the funding of £4m referred to on page 435 of the agenda was going in regard to new pupil places. She also noted that capital funding of £420k had been received and asked if any more would be available in relation to two-year olds.

30.5         Councillor Shanks stated that she believed the funding was in relation to the purchase of Hove Police Station in order to provide additional pupil places.  She also stated that she would provide a written response in regard to the funding of for two-year olds.

30.6         The Executive Director for Finance & Resources noted that estimates had been made at Budget Council in relation to new pupil places because of the government’s delay in providing the necessary information.  She stated that the Children & Young People Committee would have considered options in regard to allocations of spend and she would ensure that information on that would be made available to the members of the Policy & Resources Committee.

30.7         The Chair then put the recommendations to the vote.

30.8         RESOLVED:

(1)         That the forecast outturn position for the General Fund, which is an overspend of £3.388m be noted;

(2)         That the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.123m be noted;

(3)         That the forecast outturn position for the Dedicated Schools Grant which is an underspend of £0.208m be noted;

(4)         That the forecast outturn position on the capital programme b noted;

(5)         That the following changes to the capital programme be approved

(i)      The new schemes as set out in Appendix 3.