Agenda item

To consider the level of spending against the Council’s Revenue and Capital budgets for the first three months to 30 June 2016.

Mr Thompson, presented the Financial Performance Monitoring Report as at month 3.  The Committee was advised that the report set out the summary revenue budget position for the Council and its individual directorates for the period April 2016 – June 2016, together with an outlook for the remainder of the year. It was noted that the report also included an assessment of progress to date against the Council’s latest capital programme, incorporated the Council’s balance sheet, it indicated the level of cash flow and contained information relating to income and debt collection.

The Committee was advised that the largest overspend was in relation to Children’s Services, of which a significant factor was due to the placements of a high number of looked after children in the borough and specifically due to an increase in numbers from a position of relatively stable numbers of placements, upon which the budget had been based. Mr Thompson explained that the cause of the spike in numbers was not clear, although it was anticipated that cuts in public sector services over recent years as a whole would be having an impact.

Upon questioning from Members, Mr Thompson advised that the reduction in working balances was a concern and would be an issue to keep under consideration throughout the financial year. He explained however, that in the context of there being £35 million of earmarked reserves and with nine months remaining of the financial year, there would be sufficient time to redress the position.

The Committee agreed to note the report.

Background papers: None.