Issue - meetings

To consider a report of the Cabinet Member for Finance and Resources.

The purpose of the report is to provide an update on the revenue budget forecast outturn for the period to the end of July 2023 (Quarter 1+). The report also provides an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and updates to the Capital Programme

The Cabinet is recommended to:-

(1)  Approve the virements to the Revenue Budget;

(2)  Note the Cash Limit and Non-Cash Limit forecast outturn positions for 2023/24 as at Quarter 1+;

(3)  Note the update on Reserves;

(4)  Note the DSG and HRA forecast outturn positions for 2023/24 as at Quarter 1+;

(5)  Note the forecast position for the 2023/24 Capital Programme;

(6)  Note the changes to the Capital Programme and re-phasing of schemes during Quarter 1+;

(7)  Note the 2023/24 Capital Programme Prudential Indicators; and

(8)  Approve the debt write off as detailed in appendix 2.

Officer Contact: Jonathan Davies, 0161 218 1025 or by email on jonathan.davies@stockport.gov.uk

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) submitted a report (copies of which had been circulated) providing an update on the revenue budget forecast outturn for the period to the end of July 2023 (Quarter 1+) which included an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and updates to the Capital Programme.

RESOLVED – (1)  That approval be given to the virements to the Revenue Budget.

(2)  That the Cash Limit and Non-Cash Limit forecast outturn positions for 2023/24 as at Quarter 1+ be noted.

(3)  That the update on Reserves be noted.

(4)  That the DSG and HRA forecast outturn positions for 2023/24 as at Quarter 1+ be noted.

(5)  That the forecast position for the 2023/24 Capital Programme be noted.

(6)  That the changes to the Capital Programme and re-phasing of schemes during Quarter 1+ be noted.

(7)  That the 2023/24 Capital Programme Prudential Indicators be noted.

(8)  That approval be given to the debt write off as detailed in appendix 2.

To consider a report of the Deputy Chief Executive (Section 151 Officer).

The report provides an update on the revenue budget forecast outturn for the priod to the end of July 2023 (Quarter 1+). The report also provides an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and Capital Programme.

The Scrutiny Committee is recommended to note and comment on the report, including the recommendation to Cabinet.

Officer contacts: Jonathan Davies tel 0161 218 1025 or email jonathan.davies@stockport.gov.uk

The Deputy Chief Executive (Section 151 Officer) submitted a report (copies of which had been circulated) providing an update on the revenue budget forecast outturn for the period to the end of July 2023 (Quarter 1+). The report also provided an update on the Dedicated Schools Grant, Housing Revenue Account (HRA) and Capital Programme.

The Cabinet Member for Finance and Resources (Councillor Jilly Julian) attended the meeting to respond to councillors’ questions.

The following comments were made/ issues raised:-

·         Members queried whether additional funds were available for a new home for looked after children and in response it was stated that work was progressing on the development of a new children’s home which would increase the capacity to house looked after children within the borough.

·         In response to a question about the number of transfers from non-cash limit to cash-limit areas, it was stated that a number of assumptions were made at the start of the financial year around matters such as inflation and the cost of pay settlements and these were built into contingency budgets which were then released as these pressures had materialised.

·         Almost half of the national living wage contingency had been used in the first quarter of this year as a result of contracts having been signed and fees paid such as within adult social care services. This had been expected and measures taken to ensure that service budgets were achievable.

·         In the current economic climat,e the council examined every pound spent in Stockport on behalf of residents at a granular level of detail. The council had detailed financial recovery plans and had created a surplus in order to offset overspends.

·         The ten Leaders of the Greater Manchester Authorities, along with the ten Chief Executives and borough treasurers met regularly to find ways to drive efficiencies and savings. Furthermore the STaR procurement programme looked strategically at markets to drive savings.

·         It was commented that some services procured by the council such as highway line-marking had not been sourced locally.

·         Members commented upon the Quarter 1 forecast position deficit and noted it had been caused by an expected under-recovery of income in planning and building control areas. Members queried why if this had been expected, it had not been built into the original budget.

·         In response it was stated that work was currently underway in relation to fees for building control which would bring see an increase in fees and charges that would yield additional income. That outcome of that work was due to be reported to this Committee at a future date.

·         In relation to the Dedicated Schools Grant, it was reported that the grant was ring-fenced. The deficit had been brought forward and it was anticipated to reach 14.9 million at the end of the financial year.

·         In relation to the SEN transport deficit, it was reported that this had been a significant cost to the council for the past few years, exacerbated by the provision of SEN schools within the borough. There were challenges with routes to SEN schools due to the need to find places for children outside of the borough.  A programme of work, including the development of a new SEN school within the borough, was underway to mitigate this cost.

·         In relation to the Delivering Better Value support programme, it was reported that this work had enabled the recruitment of more educational psychologists who had been able to look at the challenges faced by young people and in turn to avoid expensive placements. The focus was enhancing and improving services for children.

RESOLVED – That the report and recommendation to the Cabinet be noted.