Decision details

The Council’s budget position for both revenue and capital needs to be monitored on a regular basis to ensure that there is control on the Council’s overall spend against its set budgets. The report will cover the details of spending and explanations for variances for each Department against these set budgets, and proposed action to achieve a balanced budget if required

The Executive will be asked to note the current position of the Council’s Revenue and Capital budget for 2008/09 and, if necessary, agree proposals to achieve a balanced budget at the year end

Received a report from the Corporate Director of Resources providing an update on the Council’s revenue and capital position for the period April to August of the 2008/09 financial year.

The position for revenue expenditure indicates that current budget pressures exist across four departments amounting to £6.3million. Overall this reflects a £400k reduction from the position reported in July. 

However the largest pressure continues to remain within the Children’s Services department where significant budget pressures continue to arise from Looked after Children Placements and in meeting the Councils’ Leaving Care responsibilities.

Agreed, in order to assist the Council to achieve all of its Community Priorities and as a matter of good financial practice, to:

(i)  note the current position of the Council’s revenue and capital budget as at 31 August 2008;

(ii)  approve the action plan to reduce the forecasted overspend in 2008/09 for Looked after Children Placements and in meeting the Council’s Leaving Care responsibilities, requiring in-year savings to be achieved across all service departments and a provision for a contribution from Corporate contingencies and balances;

(iii)  approve the following proposals within the Temporary Accommodation service being:

a)  that in consultation with the Executive Portfolio Holder (Deputy Leader) the Corporate Directors of Customer Services and Resources urgently review the level of weekly management charges applicable to temporary accommodation lettings and set revised charges as necessary to protect the Council’s financial position;

b)  that 28 days notice of any proposed  increase in the weekly charges be given to all current occupants;

c)  that a report on a “Working Families Policy “ be brought to the Executive as soon as possible;

(iv)  note the position and projected out-turn for the Housing Revenue Account; and

(v)  note that where pressures and targets exist, Corporate Directors are required to identify and implement the necessary action plans to alleviate these budget pressures to ensure that the necessary balanced budget for the Council is achieved by year end.