To report the forecast financial position for both revenue and capital to 31 October 2011, and provide an update on directorates’ financial recovery plans.

The Cabinet Member Corporate Services and Education introduced the Budget Monitoring report and referred Cabinet to the key considerations of the report, in particular that at 31 October 2011 the overall revenue budget position for 2011/12 showed a £1.552m projected overspend, which is approximately 1% of the Council’s £146.3m revenue budget (excluding dedicated schools grant funding).

The following points were made in discussion:

·         Cabinet noted the amendment to be made to the annual budget figures on page 16 of the report.

·         In response to a question on service commissioning Cabinet was informed that the care funding calculator was a much fairer way of assessing costs and was widely used by councils across the West Midlands.

·         Cabinet discussed the issue of continuing overspend on adult social care and noted it was a national problem.  On going work was being carried out to address the issue and to look at other ways of providing services to older residents, with the emphasis was on supporting the elderly so they could stay in their own homes.

·         It was noted that there would be extensive monitoring of proposed savings against targets.

RESOLVED

              THAT Cabinet:

a)    note the report and the forecast deficit position;

b)    note the Chief Executive’s requirement that Directors deliver recovery plans to ensure a balanced revenue budget; and

c)    note that the leadership team undertake to discuss a further level of savings for 20011/12.