Issue - meetings

This report:

·       Aims to ensure the council continues to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary. 

·       Present an update on the 22 May 2024 letter submitted by the Director of Finance to Department Levelling Up Housing and Communities (DLUHC) and Department for Education (DfE) outlining concerns regarding the impact the deficit on the Dedicated Schools Grant (DSG) is having on the financial sustainability of the Council.

·       Provides details of the council’s responses to the government’s consultation supporting the 30 October 2024 national Budget.

It is RECOMMENDED that Cabinet:

(a)            Acknowledges the ongoing progress being made to maintain a balanced budget position for 2025/26 and MTFP.

(b)           Endorses the latest position regarding the developing 2025/26 Budget and MTFP position.

(c)            Approve the implementation of a targeted voluntary redundancy process to enable the delivery of 2025/26 savings with delegation to the Chief Executive, in consultation with the Leader of the Council, to develop an appropriate policy.

(d)           Notes the update on the conversation with government around the impact that the DSG deficit is having on the financial sustainability of the council.

(e)            With local MP support, continue to express concern to government at the existential challenge to the Councils ability to set a legally balanced budget for 2025/26 posed by having the lack of cash to fund the special educational needs and disability service (SEND).

Voting: Unanimous

Portfolio Holder: Finance

Reason

To comply with accounting codes of practice and best practice which requires councils to have a rolling multi-year medium term financial plan.

To provide Cabinet with the latest high-level overview of the development of the 2025/26 Budget and 3-year medium-term financial plan.

To provide an update on the 22 May 2024 letter submitted to DLUHC and CIPFA regarding the difficulties presented by the accumulating DSG deficit.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book.

Cabinet was advised that the report aimed to ensure the Council continues to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary.

In relation to this Cabinet was presented with an update on the 22 May 2024 letter submitted by the Director of Finance to Department of Levelling Up Housing and Communities (DLUHC) and Department for Education (DfE) outlining concerns regarding the impact the deficit on the Dedicated Schools Grant (DSG) is having on the financial sustainability of the Council.

In addition, Cabinet was informed that the report provided details of the council’s responses to the government’s consultation supporting the 30 October 2024 national budget.

The Chair of the Overview and Scrutiny Board addressed the Cabinet advising that the Board had discussed the report in detail at the meeting the previous evening, and thanked Officers for the thorough paper. In addition the Chair expressed disappointment that one MP hadn’t signed the letter to government regarding SEND and urged the MP to sign it.

RESOLVED that Cabinet: -

(a)           Acknowledges the ongoing progress being made to maintain a balanced budget position for 2025/26 and MTFP.

(b)           Endorses the latest position regarding the developing 2025/26 Budget and MTFP position.

(c)           Approve the implementation of a targeted voluntary redundancy process to enable the delivery of 2025/26 savings with delegation to the Chief Executive, in consultation with the Leader of the Council, to develop an appropriate policy.

(d)           Notes the update on the conversation with government around the impact that the DSG deficit is having on the financial sustainability of the council.

(e)           With local MP support, continue to express concern to government at the existential challenge to the Councils ability to set a legally balanced budget for 2025/26 posed by having the lack of cash to fund the special educational needs and disability service (SEND).

Voting: Unanimous

Portfolio Holder: Finance

Reasons

To comply with accounting codes of practice and best practice which requires councils to have a rolling multi-year medium term financial plan.

To provide Cabinet with the latest high-level overview of the development of the 2025/26 Budget and 3-year medium-term financial plan.

To provide an update on the 22 May 2024 letter submitted to DLUHC and CIPFA regarding the difficulties presented by the accumulating DSG deficit.

This report:

·       Aims to ensure the council continues to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary. 

·       Present an update on the 22 May 2024 letter submitted by the Director of Finance to Department Levelling Up Housing and Communities (DLUHC) and Department for Education (DfE) outlining concerns regarding the impact the deficit on the Dedicated Schools Grant (DSG) is having on the financial sustainability of the Council.

Provides details of the council’s responses to the government’s consultation supporting the 30 October 2024 national Budget.

The Deputy Leader and Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book. The Board was advised that the Council aimed to ensure that it continued to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions would have on the underlying approved position and taking mitigating action where necessary.  The report presented an update on the 22 May 2024 letter submitted by the Director of Finance to Department for Levelling Up Housing and Communities (DLUHC) and Department for Education (DfE) outlining concerns regarding the impact the deficit on the Dedicated Schools Grant (DSG) was having on the financial sustainability of the Council. Provides details of the council’s r The report also provided details of the Council’s responses to the government’s consultation supporting the 30 October 2024 national Budget. A number of issues were raised and responded to during the discussion on this item, including:

Voluntary redundancies - That these needed to be targeted to appropriate areas. It was noted that the last time this process had been used there were areas from which voluntary redundancies were not accepted. The payback period would also be considered to see if this should be extended. It was commented that there were often unintended consequences of voluntary redundancy leaving areas short staffed. It was hoped that the scheme would negate the need for compulsory redundancies but this would depend upon the outcome of the voluntary scheme

·     Online reporting – It was suggested that Overview and Scrutiny should be involved with improvements to this and perhaps should look to a working group on this issue.

·     Dedicated School Grant High Needs Budget – Report advised of the commissioning of a review but there were concerns on the effectiveness of this. The review was being undertaken by Chris West, Advisor to Department of Education. This took place during September and was now in a place where the report was being finalised and the report going back to the DfE. There was a need to receive advice from central government in order for advice to be given to Council on how a balance budget can be set for 2025/26.

·     Impact of High Needs Budget – The Council budget was approximately £357m, the high needs budget government grant was £63.2m, the anticipated overspend was £28m.  However, the updated overspend increased to £44.5m in the quarter one budget monitoring. Spending was approximately 77 percent more than the grant. In the first quarter of 2025/26 the budget would run out of headroom to cashflow the DSG deficit. Cash flowing the deficit costs approximately £5m per year. The budget for 2024/25 included £38 million of savings which could have been reduced if it wasn’t for this need. The Portfolio Holder commented that the current scheme was unsustainable and needed a full review.

·     Local MP Letter to government - Issues were raised  ...  view the full minutes text for item 49

This report:

·       Aims to ensure the council continues to maintain a balanced 2025/26 budget forecast by considering the impact that changes to the previous assumptions will have on the underlying approved position and taking mitigating action where necessary. 

·       Present an update on the 22 May 2024 letter submitted by the Director of Finance to Department Levelling Up Housing and Communities (DLUHC) and Department for Education (DfE) outlining concerns regarding the impact the deficit on the Dedicated Schools Grant (DSG) is having on the financial sustainability of the Council.

Provides details of the council’s responses to the government’s consultation supporting the 30 October 2024 national Budget.

This item was opened and closed with a view to inclusion as an agenda item at a future meeting.