Decision details
Budget Monitoring Report
PDF 51 KBDecision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
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To provide Cabinet with assurance on the robustness of budgetary control and monitoring across the Council, to highlight key financial risks within directorates and identify mitigation to bring the authority within its overall approved budget. |
Decision:
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THAT: (a) Cabinet notes the projected overspend of £2.5m for 2013/14, an improvement on the September position of £0.8m, the potential impact on reserves and the 2014/15 budget; and (b) Cabinet supports the continuing action by Directors to identify further financial savings to mitigate the impact. |
Reasons for the decision:
The council continues to forecast an overspend for the year, at October approximately £2.5m or 1.6% of its net budget, compared to £3.3m in September. The overall position has been mitigated by additional funding from central government to support small business rate relief.
The key pressure continues to be Adults Wellbeing; either savings slipping or not being able to be delivered and pressures from the Department of Health.
The council has a limited level of general reserves; to such an extent that any overspend in year would need to be recovered in 2014/15.
Local authorities are not legally permitted to borrow to support revenue overspends and the low level of general reserves put this position at risk unless urgent action is taken. Additional action is therefore recommended, to bring forward additional savings proposals from across the council, to minimise the potential overspend.
Alternative options considered:
There are no alternative options that do not radically affect the provision of services.
Publication date: 19/12/2013
Date of decision: 19/12/2013
Effective from: 01/01/2014