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 pressures in 2018/19, proposals will be developed to close the current budget in year forecast budget deficit. This will include the review of all current vacancies and non-essential expenditure in addition to all current budget forecasts across all service areas;
(2) in the event that there is material change to the 2018/19 outturn forecast, additional remedial measures should be identified in order that a balanced budget position can be achieved; and
(3) as a result of the impact of the current financial position in 2018/19, and its subsequent impact on the 2019/20 budget, , proposals will be made for Members to consider as part of the budget process, in order that a robust and sustainable budget can be set for 2019/20. In the event that further budget pressure is identified in advance of year end, additional proposals will also need to be brought forward to ensure financial sustainability.
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:
None.