To review performance for Quarter 4 2022/23 and report the provisional financial outturn for revenue and capital budgets for the year ended 31 March 2023, subject to external audit.

To provide assurance that progress has been made towards delivery of the agreed revenue budget and service delivery targets, and that the reasons for major variances or potential under-performance are understood and are being addressed to the cabinet’s satisfaction.

Cabinet members considered a report setting out the performance from quarter 4 2022/23 and the provisional outturn for revenue and capital budgets for the year ended 31 March 2023.

The cabinet member finance and corporate services introduced the report and explained that the final year-end position for 2022/23 is an overspend of £5.6m, representing 3.2% of the net budget. The overspend has been funded from the financial resilience reserve and is broadly consistent with the plan presented to council as part of the budget in February 2023. The council’s annual accounts have been prepared and published within the statutory deadline.

The cabinet member also highlighted that the council has experienced a number of national pressures during the year, including high inflation and the rising cost of living. Children’s services in particular has seen rising demand for placements and transport services and £10.2m of the £11.5m children’s improvement plan funding has been spent in 2022/23, with the remaining £1.3m carried forward to continue to support transformation and improvement in 2023/24.

Cabinet members discussed the report and it was noted that:

·       Community wellbeing has delivered an underspend of £1.3m, budgets in this area are difficult to forecast and underspends in a number of services are due to clients sadly passing away;

·       In addition to this the community wellbeing directorate has delivered all proposed savings and performed well against measures in the delivery plan with two exceptions, which reflect the increasing needs of people coming out of hospital;

·       The proposed new care home in the capital programme has not progressed as no suitable site has been found and, having reflected on the priority needs, a new direction for this project is being explored to provide bed based provision for working age adults with complex needs as these placements are often out of county and high cost;

·       One piece of land acquired under a compulsory purchase order on the route of the Southern Link Road has been reacquired by the owner exercising their rights under the CPO, this was completed in quarter 3 of 2022/23 and the receipt placed in the capital receipts reserve;

·       The Marches Business Improvement programme has exceeded its targets;

·       The capital programme will be reviewed in the coming weeks;

·       Performance on environment projects has been good with 21 out of 26 projects on track, the wetland at Luston is now fully commissioned and trading credits and the cabinet member will continue to work to find means to see house building restored to the Lugg catchment;

·       30 businesses have now signed up to the ‘30 for 2030’ low-carbon business programme;

·       Delivery of works under the home upgrade grant and green homes grant has been a struggle and the cabinet member will be seeking improved performance in future.

Group leaders gave the views of their groups. It was noted that the overspend in fact represents a huge effort from all areas of the council given the pressures in children’s services and high rate of inflation. Members of the previous administration thanked officers for their hard work and commitment to the objectives of the county plan. In response to queries it was noted that:

·       Cabinet members and senior officers are aware of the continuing cost pressures and the implications of the increasing aging of the population;

·       The council has learned from the issues with leases that prevented debts from being chased and improved its leases and agreements for the future;

·       Cycling and walking routes in and around the city and connecting the wider area will be considered over the next few months as part of the local transport plan.

It was unanimously resolved that Cabinet, having reviewed performance and financial outturn for year 2022/23, as set out in the appendices A-F, have not identified any additional actions to be considered to achieve future improvements.