The report of the Director of Finance, IT and Procurement, (Document “AD”) provides an update on the forecast year-end financial position of the Council for 2022-23. It outlines the revenue and capital budgets and the year-end financial position based on information at the end of December 2022. It states the Council’s current balances and reserves and school balances. 

The report is the third monitoring report presented to Members on the Council’s 2022-23 financial position. It provides the forecast revenue and capital financial position of the Council at the 31st March 2023. The report covers:

·         The forecast outturn of the Council’s revenue budget in 2022-23

·         The forecast financial impact of inflation in 2022-23

·         A statement on the Council’s reserves

·         An update on the Capital Investment Plan.

·         The Council’s Risk Register.

Members are asked to review and comment on the Qtr 3 Finance Position Statement for 2022-23.

(Andrew Cross – 07870 386523)

The report of the Director of Finance, IT and Procurement, (Document “AD”) provided an update on the forecast year-end financial position of the Council for 2022-23. It outlined the revenue and capital budgets and the year-end financial position based on information at the end of December 2022. It stated the Council’s current balances and reserves and school balances. 

The report was the third monitoring report presented to Members on the Council’s 2022-23 financial position. It provided the forecast revenue and capital financial position of the Council at the 31st March 2023. The report covered:

• The forecast outturn of the Council’s revenue budget in 2022-23
• The forecast financial impact of inflation in 2022-23
• A statement on the Council’s reserves
• An update on the Capital Investment Plan.
• The Council’s Risk Register.

During the discussion, a Member stated that the crux of the overspend was the cost in the provision of external placements in Children’s Services and he also sought clarity on the reserves position and the capital programme.  In response it was stressed that reserves would be used now to cover for shortfall in the budget, and this was also the advice given by external experts.  It was also highlighted that there had been unprecedented levels of investment within Children’s Services.

In response to a question regarding the long term use of reserves and the contingency, it was explained that the use of reserves would continue into the future.

In response to a question regarding vacancy control, it was stated that there had been challenges experienced in the recruitment market in filling some key vacancies, however services were working hard to minimise the impact on service delivery.

In relation to the cost of living crisis and the rise in energy bills, it was explained that the rise in energy bills had only become an issue later in 2022, and was not a factor when the 2022/23 budget was set.

In response to a question regarding the continuing problems being experienced in recruiting social workers, it was explained that recently a large cohort of newly qualified social workers had joined the service, and that additional support was in place to ensure that their progressed within the Service.  However, the recruitment and retention of social workers was a national issue and to this end the Council was trying to recruit international social workers, where the induction process would be shorter, once they joined the service.

In response to a question regarding educational attainment, it was stated that the pandemic had seen a dip in attainment levels in Bradford, and that the service was working hard to make improvements going forward and that it will be a particular area of focus.

In relation to the underspend in Neighbourhoods, it was explained that this was a result of some additional funds coming into the service, and that efforts were ongoing to fill vacancies that existed within the Service.

The Leader of Council was present at the meeting and she stressed that the gap in Local Government Funding was a national issue, which the LGA was lobbying hard on, and what was really needed was a fair funding review, so that Councils were adequately funded

Resolved –

(1)       The Committee looks forward to considering the Fourth Quarter          Financial Position Statement.

(2)       The Committee requests that a report be presented in the new municipal year, in relation to the progress of the Capital             Programme.

ACTION:  Strategic Director for Corporate Resources