Revenue and Capital Budget Update 2018/19 – 2019/20
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Update on the current forecast outturn
position for Revenue and Capital (based on January 2019).
The Cabinet considered the report of the Head of Corporate Resources which provided details of the current forecast revenue outturn position for the Council for 2018/19 and potential impact on the 2019/20 budget; the current forecast on Council Tax and Business Rates collection for 2018/19 and the current position of the 2018/19 Capital Programme.
Decision Made: That:
(1) It be noted that in view of the significant budget pressure in 2018/19, officers will continue to review all current budget forecasts across all service areas to close the current in-year forecast budget deficit (£0.062m). This will include the continuing review of all current vacancies and non-essential expenditure;
(2) in the event that there is material change to the 2018/19 outturn forecast, approval be given to additional remedial measures being identified in order that a balanced budget position can be achieved;
(3) in the event that additional financial pressure are identified between now and the year end, that has not taken account of in the recently approved 2019/20 budget, approval be given to additional proposals being brought forward for members to consider in order to ensure that financial sustainability is maintained; and
(4) the reduced delivery of the capital programme be noted and that as the delivery has reduced, a full review of capital project management be led by the Head of Corporate Resources and be completed in advance of the next financial year.
Reasons for Decision:
To ensure Cabinet are informed of the forecast outturn position for the 2018/19 revenue and capital budgets as at the end of September 2018 and to provide an updated forecast of the outturn position with regard to the collection of Council Tax and Business Rates.
In March 2017 Council approved a three-year budget plan to March 2020. The final two years of this plan were revised in March 2018 as part of the process of setting the 2018/19 budget. The Council is half way through the second year of the budget plan and remains confident that the strategic approach to budget planning alongside good financial management and extensive community engagement means that it will secure future sustainability to 2020 and beyond. However, in year demand for social care services is currently resulting in the costs for these services exceeding the budget. Corrective action will be required to bring the overall budget into balance before the end of the financial year if the position worsens over the coming months.
Alternative Options Considered and Rejected:
Report author: Paul Reilly
Publication date: 13/03/2019
Date of decision: 07/03/2019
Decided at meeting: 07/03/2019 - Cabinet
Effective from: 21/03/2019