The Strategic Director Corporate Services will submit a report (Document “H”) which provides Members with an overview of the forecast financial position of the Council for 2017-18.

It examines the latest spend against revenue and capital budgets and forecasts the financial position at the year end. It states the Council’s current balances and reserves and forecasts school balances for the year. 

Recommended –

That the Executive

(1)       Note the contents of this report and the actions taken to manage the forecast overspend.

(2)       Approve the following capital expenditure schemes.

• £1.1m to fund the development of sports pitches and construct new changing facilities on the King George V Playing Fields. The scheme is to be funded by £0.7m grants, £0.2m from the Canal Road budget already approved within the Capital Investment Plan and £0.2m from general contingency.
• £0.4m for the demolition of the former Keighley College Cavendish Street Building to be funded from general contingency.
• The movement of £0.667m from the Disabled Facilities Grant to support the provision of equipment by BACES.
• The Executive is asked to approve the additional funding of £3m for the St Georges Hall refurbishment.

Overview and Scrutiny Committee: Corporate

(Andrew Cross - 01274 436823)

The Strategic Director Corporate Services submitted a report (Document “H”) which provided  Members with an overview of the forecast financial position of the Council for 2017-18.

It examined the latest spend against revenue and capital budgets and forecasted the financial position at the year end. It stated the Council’s current balances and reserves and forecasted school balances for the year. 

In explaining the financial position, the Strategic Director stated that based on the 31 May 2017 projection, the Council was forecasting that spend would be £10.5m above the approved budget of £375.2m, however this was based on information which was gathered at an early point in the financial year and the ultimate outturn position would depend on what actions are taken to mitigate the projected overspend.  The main pressure points in terms of service areas related to Adult and Children’s Services.

The Strategic Director also drew attention to the reserves position and the capital investment programme, as well as the Council Tax/Business Rates collection rates.

During the discussion, the Leader drew attention to the projected £10m overspend and the particular demands being put on Adults and Children’s Social Care.

The Health and Wellbeing Portfolio Holder expressed her concerns at the funding crisis facing Adult Social care nationally and the failure to bridge the gap in funding.  In relation to the projected overspend, the Portfolio Holder stated that a number of initiatives were being looked at to try and identify savings.  However within Children’s Services demand was increasing, with cost of placements, a particular cause for concern.

In addressing the projected overspend, the Portfolio Holder stated that she was hopeful that early help and intervention work with families should pay dividend in due course.

The Leader stressed that there needed to be a national debate on how we fund adult and children’s social care, and that there needed to be a willingness from Government to address this issue and fund these services adequately.

In relation to capital expenditure, the Regeneration, Transportation and Planning Portfolio Holder stated that the ambition to support the district’s heritage and regeneration projects remained a high priority, and that the additional cost for the refurbishment of St Georges Hall had already been earmarked.

The Leader stated that in the context of the projected £10m overspend, that Strategic Directors discuss what measures could be put in place to address this and that a report on this be presented to September meeting of the Executive, and it was therefore:

Resolved –

(1)       That the contents of Document “”H” and the actions taken to     manage the forecast overspend be noted.

(2)       That  the following capital expenditure schemes be approved:

(i)    £1.1m to fund the development of sports pitches and construct new changing facilities on the King George V Playing Fields. The scheme is to be funded by £0.7m grants, £0.2m from the Canal Road budget already approved within the Capital Investment Plan and £0.2m from general contingency.

(ii)  £0.4m for the demolition of the former Keighley College Cavendish Street Building to be funded from general contingency.

(iii)The movement of £0.667m from the Disabled Facilities Grant to support the provision of equipment by BACES.

(iv)The additional funding of £3m for the St Georges Hall refurbishment.

(3)       The Executive request that the Chief Executive provides an update report detailing steps taken to get the budget back on track and that this is submitted to the Executive meeting in September.

ACTION:       Strategic Director Corporate Services / Chief Executive                            (resolution 3)

Overview and Scrutiny Committee: Corporate