To report the forecast financial position for both revenue and capital to 31 August 2011 and provide an update on Directorates’ recovery plans IN PLACE to address projected overspends.

The Cabinet Member Corporate Services and Education presented the report and advised Cabinet that currently the forecast was for a budget deficit as outlined at page three of the report, which indicated a £2.57m overspend with the Adult Social Care budget being the budget of concern and which was under revision on a regular basis.

The Leader emphasised a plan was in place to get the budget in Adult Social Care back on track and all other directorates were reviewing their budgets.  In response to questions raised on the demographics of the county and the budgeting  preparedness for young people moving from children services to adult social services. Cabinet was advised that work was underway in the cost improvement plan to ensure that the data gathered was more robust.  It was added that negotiations had been held with providers and the fair funding calculation had just been introduced.  This calculation sets a consistent benchmark and has been successfully used by other authorities providing a significant reduction in costs.  It was noted that one of the concerns for Herefordshire was the lack of services to assist people requiring help to continue living in their own home.

RESOLVED

          THAT:

a)    Cabinet noted the report and the forecast deficit position of £2.75 million; and

b)    Cabinet noted the Chief Executive’s requirement that Directors deliver recovery plans to ensure a balanced revenue budget.