Decision details

The Cabinet gave consideration to a report of the Director of Finance, which sought to provide the Cabinet with an update on the Council’s 2018/19 forecast revenue budget position at Annex 1 and the financial position of the Capital Programme as at 30^th June 2018 (Quarter 1) together with the revised capital programme 2018/22 as outlined in section 2 of the report at Annex 2.

Revenue Position

The current forecast outturn position for 2018/19 was a projected favourable variance of £0.100m after allowing for approved and pending transfers to and from reserves.

The most significant area of concern was the People and Place Portfolio, due to the transfer of Children’s Social Care into this area. The major issues driving the projections within the portfolio area were detailed within Annex 1 paragraphs 2.10.11 to 2.10.17.

Action was being taken and would continue for the remainder of the financial year to address variances and mitigation as detailed within the report.

The overall corporate position was being managed by offsettingfavourable variances, notably from capital, treasury and corporate account budgets and the availability of additional treasury management income and unringfenced grants not allocated to service budgets.

The Quarter 1 position of the Dedicated School Grant and Housing Revenue Account and Collection Fund were also outlined in the report, with no significant issues of concern, however the DSG continued to be an area facing significant financial challenge. 

Capital Position

The most up to date capital spending proposals for 2018/22 were provided to Members. The Capital programme budget was £60.022m at the close of quarter 1, a net decrease of £29.636m from the original budget of £89.658m. Actual expenditure to 30 June 2018 was £4.200m (7.00% of forecast outturn).

It was reported that at this stage in the financial year, the forecast position would continue to change with additional re-profiling into future years.

Options/Alternatives considered

Option 1 – To approve the forecast revenue and capital positions presented in the report including proposed changes.

Option 2 – To approve some of the forecasts and changes detailed within the report.

Option 3 – Not to approve any of the forecasts and changes detailed within the report.

RESOLVED – That:

1. The forecast revenue outturn for 2018/22 at Quarter 1 being a £0.100m under spend be approved.
2. The forecast positions for both the Housing Revenue Account and Collection Fund as detailed within the report be approved.
3. The use of reserves as detailed in Appendix 1 to Annexe 1 of the report be approved.
4. The revised capital programme for 2018/22 as at Quarter 1 be approved.