Issue - meetings

To consider the report.

Following consideration of the officer report, appendices and discussion, the Executive:

a.        Noted the forecast overspend of £26.1m (as at month 4) for the year and the key risks, future issues and opportunities.

b.        Requested that each of the Scrutiny Committees urgently reviews the budget monitoring position for their areas of responsibility and that the relevant Executive members set out the reasons behind the current forecasts and the actions that are being taken to address the position. 

c.        Approved that member briefings are set to ensure every councillor has the opportunity to fully understand the financial current situation and the financial challenges facing the council going forward.

d.        Received a monthly update on the financial position and actions being taken to address it. 

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited Mr Alan Debenham to address the Executive.

Mr Alan Debenham addressed the Executive with questions regarding the Somerset Council's financial position, responses from the Executive Lead Members are provided in Appendix A to the minutes.

The Lead Member for Economic Development, Assets and Planning, Cllr Ros Wyke, added an update on the nutrient neutrality scheme and that once clarity on this scheme is received, the information will be communicated.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report.

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: that the report sets out the very stark and challenging situation that is faced both locally and nationally, including recent Government announcements; the forecast overspend and draw and use of reserves, the budget monitoring position and the addition of month four budget monitoring report; the opportunity as one Council to identify risks, improvements and opportunities; and the Directorate Management Teams work on actions to mitigate the position and financial recovery plans, including the five Scrutiny Committees to review the budget monitoring position of their area, risk reporting, monthly all Member Budget Monitoring Briefings and a monthly update on the financial position and actions being taken to address it.

The Executive Director - Resources and Corporate Services, Jason Vaughan, further added to the above points, highlighting: the upcoming use of the solver budget monitoring tool;  Section 114 notices; the recommendations presented to inform Council of the financial pressures; the increase in expenditure and income, with the Government National funding received by Councils not matching responsibility and expenditure;  the transformation, savings and income generation proposals; treasury management activities.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited Executive Lead Members to provide an update on projected overspends, mitigations and opportunities within their area of responsibility. In reference to Strategy & Performance and Governance, the Leader advised of an overspend due to the continued need to place legal cases, principally in respect of childcare, with legal experts with actions including reviewing practice and developing the capacity of the legal team and reducing the need to externalise this work.

The Lead Member for Adult Social Care, Cllr Dean Ruddle, highlighted: the increased pressure on services and costs resulting in a projected £3.8m overspend; and the work to achieve £10m savings over two years, including monitoring and reviewing the budget to achieve efficiencies and the five key areas of planned mitigation to deliver efficient savings.

The Lead Member for Children, Families and Education, Cllr Tessa Munt, highlighted: the work on rationalisation of cost centres and the work to clearly present information and figures; the external placements budget overspend; and the use of Microsoft Dynamics and solver budget planning tool and the work with  ...  view the full minutes text for item 38