To report the forecast position for 2024/25 at Quarter 3 (December 2024).

The member for finance and corporate services introduced the report.  The report presented the outturn position at quarter 3 2024/25, December 2024. It showed the overall position was a £7m overspend which was expected to reduce to £1.1m by year end. It was noted that despite in year challenges the council had responded proactively to mitigate timing issues in the delivery of savings.

The council's approved net revenue budget for 24/25 was £212.8m which included savings of £19.5m comprising £11.6m of directory savings and £7.9m of council wide budget savings. 

The report highlighted the continuing in year cost pressures to support increases in demand across social care budgets, temporary accommodation and special educational needs transport services.

It was highlighted that the quarter 3 revenue outturn position for 24/25 showed a forecast variance from budget of £7m, an improvement of £3.2m compared with quarter 2. The successful delivery of management actions identified at quarter 2, had a positive impact on the overall outturn position and it was expected that further planned activities in quarter four (January to March 2025) would reduce the forecast overspend to £1.1m by 31 March 2025.

It was noted that a review of the delivery and stages of approved savings had been undertaken at quarter 3 to confirm deliverability of savings targets.  This identified a total of £1.9m of savings across directorate targets which were assessed as at risk at quarter three.

Appendix A of the report set out the detailed explanations for variances from budget by directorate and service areas.

Community Well-Being directorate’s forecast overspend of £5.7m represented in year net cost pressures of £3.3m and savings targets assessed as at risk of delivery by 31 March 2025 of £2.4m.  It was noted that the in-year cost pressures were largely attributable to increase in demand and complexity of client need and increased demand for temporary accommodation. It was confirmed that the section 151 officer’s section 25 report provided assurance that that the directorate budget allocation for 2025/26 reflected these cost pressures and was sufficient to meet the needs and the costs of service delivery.

It was highlighted that £3.3m of the total £5.7m target was forecast to be delivered by 31 March 2025.  £2.4m of savings had been assessed as at risk and due to capacity restraints, these savings will not be delivered in-year. 

The Children and Young Peoples directorate had an underspend of £2m forecast for 2024/25 with forecast delivery of the £2.3m savings target in full by 31 March 2025.  It was noted that the forecast position reflected the impact of increased rigour and challenge of directory expenditure throughout 24/25 and provided assurance that the savings approved for delivery in 25/26 (year two of the revised financial plan) were already in progress. It was highlighted this was the first time in 10 years that the directorate had delivered within budget.

It was noted that forecast expenditure across service areas within Children Young People directorate continued to decrease because of review and management of residential  ...  view the full minutes text for item 70