Issue - meetings

To consider a report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

Decision

(a)  That the Senior Leadership Teams’ forecast of the full year’s outturn for the Council, made at the end of Quarter 3, be noted, including progress of the work to deliver savings that were incorporated into the budget.

(b)  That the spend to date on the approved capital programme for 2022/23 and the likelihood of significant slippage alongside the risk of inflation, interest rates and more general delivery concerns, be noted.

(c)  That the impact of the pay award for 2022/23 and the impact this would have on the base budget position going into 2023/24, be noted

(d)  That the assumptions about the final quarter of the year and risks around those which might have an impact on the 2023/24 budget strategy beyond those specifically incorporated into the Council’s financial model, be noted.

Reason for the decision

The Council had responsibilities to deliver its corporate plan priorities and it must do this within the resources made available through the revenue and capital budgets for 2022/23.  The report summarised the Council’s forecast financial performance for the full year at the end of the third quarter.

The Portfolio Holder for Finance, Commercial & Capital Strategy set out the council’s projected financial performance for the 2022/23 financial year at the end of Quarter 3 (Qtr).

The Council continued to experience budget pressures with an increase of projected overspend from Qtr3 to Qtr3 from 7.8m to 8.37m at the end of Qtr3. The Portfolio Holder confirm2d that 2022/23 continued to be an extremely challenging time for local government with inflationary and demand pressures impacting on income and expenditure.

The recommendations set out in the report were proposed by Cllr G Suttle and seconded by Cllr P Wharf.

In response to a question regarding the High Needs Block, the Executive Director, Corporate Development advised that Dorset Council had signed up to a safety value agreement with the Department of Education (DfE) to help eradicate the cumulative deficit on the Dedicated School Grant (DSG).  However, the situation nationally continued to be a challenge and although there was a good plan in place, there was a significant number of children in placements outside of the council area. Inflation and capital costs were also impacting the creation of those low-cost Dorset placements as quickly as was hoped. In respect of a further question, the Executive Director, Corporate Development confirm that he remained confident that the placements would be built, but he acknowledged it was going to take longer than was originally anticipated.

In respect of a question around sundry debt management, the Executive Director, Corporate Development advised that much of the debt around adult services was secured against property. In respect of debt around car parks and loss of income from broken car park machines, the Portfolio Holder for Highways, Travel and Environment reminded members that the proposed car park fees were downgraded from the original budget following public consultation. It was anticipated that new car park machines would be in place by the Easter period. 

Decision

(a)       That the Senior Leadership Teams’ forecast of the full year’s outturn for the Council, made at the end of Quarter 3, be noted, including progress of the work to deliver savings that were incorporated into the budget.

(b)               That the spend to date on the approved capital programme for 2022/23 and the likelihood of significant slippage alongside the         risk of inflation, interest rates and more general delivery concerns,        be noted.

(c)           That the impact of the pay award for 2022/23 and the impact this would     have on the base budget position going into 2023/24, be noted

(d)           That the assumptions about the final quarter of the year and risks                 around those which might have an impact on the 2023/24 budget                 strategy beyond those specifically incorporated into the Council’s                   financial model, be noted.

Reason for the decision

The Council had responsibilities to deliver its corporate plan priorities and it must do this within the resources made available through the revenue and capital budgets for 2022/23.  The report summarised the Council’s forecast financial performance for the full year at the end of the third quarter.