Issue - meetings

RECOMMENDED that Cabinet: -

(b)           Recommend to Council the revenue budget virement set out in paragraph 5.

Note - resolutions (a) and (c) were resolved matters by the Cabinet.

The Portfolio Holder for Finance, Councillor Mike Cox presented the report on the Council Budget Monitoring 2024/25 Quarter One and outlined the recommendations as set out on the agenda.

RESOLVED that: -

(b)          the revenue budget virement set out in paragraph be agreed.

Note – resolutions (a) and (c) were resolved matters by the Cabinet.

Voting: For:43, Against:0, Abstentions:21

Councillor Vanessa Ricketts left the meeting at 8.41pm.

This report provides the quarter one 2024/25 projected financial outturn information for the general fund and housing revenue account (HRA).

The February 2024 approved general fund budget for 2024/25 was balanced on the assumption of £38m in savings, efficiencies, and additional resources. 

The quarter one budget monitoring position for 2024/25 demonstrates the ongoing financial challenges to this authority from relentless increasing demand and cost pressures. These pressures are not dissimilar to those faced by all upper tier local authorities. The council’s robust financial governance and proactive management of its budget is enabling significant mitigation.

Services are expected to implement mitigation strategies to address emerging operational pressures identified within the first quarter. This is critical to maintaining the financial health and sustainability of the council as the medium-term financial plan makes no allowance for replenishing any reserves used to balance 2024/25 budget.

The expenditure on the Special Educational Needs and Disability Service (SEND), which is within the high needs budget, continues to exceed the government grant made available as part of the Dedicated Schools Grant (DSG) and reflects the rising demand for services in this area. This position has significantly worsened from the already dire position assumed in the budget for 2024/25. BCP Council has taken steps to manage this situation locally but, as a national issue, these steps are limited. Conversations for an urgent solution continue with the Department for Education (DfE) and the Ministry of Housing, Communities, and Local Government (MHCLG). 

RESOLVED that Cabinet: - 

(a)        Note the budget monitoring position for quarter one 2024/25.

RECOMMENDED that Cabinet: -

(b)        Recommend to Council the revenue budget virement set out in paragraph 5.

RESOLVED that Cabinet: -

(c)        Request a detailed report to October Cabinet from the Corporate Director for Children’s Services on the High Needs Dedicated Schools Grant expenditure forecast and available mitigation measures in 2024/25. This report will need to seek Council approval for any additional resources over the approved budget.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position and take any action to support the sustainability of the council’s financial position.

To comply with the council’s financial regulation concerning approval for budget virements.

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 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report provided the quarter one 2024/25 projected financial outturn information for the general fund and housing revenue account (HRA).

Cabinet was informed that the February 2024 Council had approved the general fund budget for 2024/25 which had been balanced on the assumption of £38m in savings, efficiencies, and additional resources. 

In relation to this Cabinet was advised that the quarter one budget monitoring position for 2024/25 demonstrates the ongoing financial challenges to this authority from relentless increasing demand and cost pressures, pressures not dissimilar to those faced by all upper tier local authorities, and that the council’s robust financial governance and proactive management of its budget is enabling significant mitigation.

Cabinet was informed that services are expected to implement mitigation strategies to address emerging operational pressures identified within the first quarter, and that this was critical to maintaining the financial health and sustainability of the council as the medium-term financial plan makes no allowance for replenishing any reserves used to balance 2024/25 budget.

Cabinet was advised that the expenditure on the Special Educational Needs and Disability Service (SEND), which is within the high needs budget, continues to exceed the government grant made available as part of the Dedicated Schools Grant (DSG) and reflects the rising demand for services in this area, and that this position has significantly worsened from the already dire position assumed in the budget for 2024/25. BCP Council has taken steps to manage this situation locally but, as a national issue, these steps are limited, in relation to this Cabinet was advised that conversations for an urgent solution continue with the Department for Education (DfE) and the Ministry of Housing, Communities, and Local Government (MHCLG).

Further to this the Leader advised the Cabinet that whilst there had been no formal recommendations from the Overview and Scrutiny Board that there had been a long and thorough debate on this item at the recent meeting of the Board.

The Chair of the Health and Adults Overview and Scrutiny Committee addressed the Cabinet speaking specifically on the proposed virement from the adult social care budget to the children’s social care budget.

RESOLVED that Cabinet: - 

(a)        Note the budget monitoring position for quarter one 2024/25.

RECOMMENDED that Cabinet: -

(b)        Recommend to Council the revenue budget virement set out in paragraph 5.

RESOLVED that Cabinet: -

(c)        Request a detailed report to October Cabinet from the Corporate Director for Children’s Services on the High Needs Dedicated Schools Grant expenditure forecast and available mitigation measures in 2024/25. This report will need to seek Council approval for any additional resources over the approved budget.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position and take any  ...  view the full minutes text for item 39