To provide Cabinet with an updated position on the projected outturn for 2014/15.

Cabinet received a report setting out the forecast outturn position for 2014/2015 based on financial information as at the end of August 2014.

The Chief Financial Officer explained that the council is forecast to break even this year. The councils External Auditors have given all areas of financial performance a green rating, an improvement on last year’s amber and red ratings.

Revenue contingency budget has been vired to allow extra grass cutting and to contribute to the cost of temporary buildings for Colwall Church of England Primary School.

Capital spending is forecast to be £8.8m higher than budgeted. This is due to being successful in a number of grant applications and the re-profiling of expenditure and will not be a cost to the council.

It was reported the latest forecasts predict overspends of £972k in Adults and Wellbeing, and £484k in Children’s Wellbeing with an underspend of £225k in Economy, Communities and Corporate.

The Cabinet Member for Health and Wellbeing gave Cabinet details of the current and future changes being put into place in Adults and Wellbeing. It was confirmed the changes implemented so far this year mean there is confidence of being in an ongoing position of stability.

In answer to a members question about possible winter pressures the Cabinet Member for Health and Wellbeing gave details of changes being put into place in the system, which if achieve their aims, should mitigate any winter pressures.

The Chief Executive confirmed the creation of a transformation board bringing together the Wye Valley NHS Trust, 2gether, the Clinical Commissioning Group and Herefordshire Council.

The Cabinet Member for Young People and Children’s Wellbeing advised the savings targets for Children’s Wellbeing have so far been 70% achieved and plans are on target with every effort being made to break even by the end of the year.

The main issues facing the directorate have been a 12% increase in children in care and staffing costs in safeguarding services.

The Director of Children’s Wellbeing went onto confirm an increase in social workers has reduced the caseloads of individual staff and there has been a reduction in the turnover of permanent staff.  The current percentage of agency staff at management level is 20% and at front line level 46%. There is a movement of newly qualified social workers into posts which will release some agency staff.

In answer to a members question it was confirmed the cost of using agency staff is an additional £1m. There are plans in place to develop in house social workers, however the team will always require experienced staff which are more difficult to recruit and there is a need to encourage experienced people into the county. Targets are in place to recruit permanent staff and these are currently being met.

Following issues raised by members in attendance concerning next years budget the Chief Financial Officer confirmed this will be worked on over the coming months, with the budget based on anticipated future demands, and future savings being made in a controlled situation, whilst remaining mindful of unforeseen changes and risks.

Assurance was given by the Chief Financial Officer that funding had been identified for the £2m estimated cost of work required at Colwall Church of England Primary School.

Resolved

THAT: 

(a)  Cabinet notes the council is projected to spend within its budget for this financial year;

(b)  Cabinet notes the capital and treasury projected outturns; and

(c)  Cabinet agrees the virement of 2014/15 revenue and capital contingency budgets to meet in year pressures within Directorates