Meeting documents

To consider this report.

The Committee considered this report that set out the Quarter 2 (month 6) forecast outturn position for 2019/20 for the net Revenue Budget of £327.967m. It also highlighted variances to service budgets, as well as emerging issues, risks, areas of concern and proposed actions to resolve them.

An overview of the overall financial position was provided, and it was noted that although uncertainties remained the Council’s underlying position had improved over the last year. It was noted that Children’s Services were reporting an adverse variance within their budget of £1.768m which was an adverse movement of £1.149m from month 5. Also, it was reported that external placements projections had increased by £0.933m resulting in a total projected overspend of £2.056m, the increase was due to 11 children changing placement during the last month.

There was a brief discussion about the costs associated with transporting children to school and it was noted these were projected to increase by £0.196m. This was due to a reduction of £0.304m in Home to School transport costs and an increase of £0.500m in SEND transport. In response to a question it was explained the reduction in Home to School costs were a result of specific market disruption activity, including a project called The Big Bus, an inhouse fleet that offered several routes to offset costs of additional children travelling.

Members noted that a Somerset School had become a sponsored academy (joining a multi academy trust following an inadequate Ofsted inspection). At the point of transfer the school had been in deficit and this would remain with the Council, to be funded from the core budget. Unfortunately, this was not an allowable charge to the Dedicated Schools Grant and the school’s deficit was currently estimated at £0.450m, Members thought this an unfair process.

The Deputy Leader of Council stated the Council was evidencing a sustained tighter financial grip going forwards through the budget monitoring forecast and its approach to MTFP for 2020-2023. To further support this there would be a continuation of formal monthly monitoring reports to Cabinet and to   Place Scrutiny. Alongside this internal tracking and budget monitoring processes continue to be given close attention by the Council’s leadership team.

It was noted that the Council’s Medium-Term Financial Plan (2019-22), to be considered at the January 2020 meeting, would set out proposals to further develop the Council’s financial resilience over the long-term whilst also supporting the delivery of Somerset’s key priorities. The report was accepted.