Issue - meetings

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

The committee reviewed the Quarter Financial Management Report which had been considered by Cabinet on 8 November 2021. The committee had the opportunity to review and drill down into the report in detail, at the current time the financial forecast was a £4.8 million overspend at the end of the year and a £16.6 million overspend on the Dedicated Schools Grant.  There was an improving direction of travel but the council was still dealing with the consequences of the Coronavirus pandemic, particularly in the Adults directorate and had faced a reduction in income for other council services such as the Place Directorate. The council had however received £8.6 million of Covid Grant from central government.

To put the report into context John Sellgren, Executive Director of Place, outlined to the committee the financial pressures within his directorate, for example loss of income from leisure centres and car parks. However, there was some positive work being undertaken by officers on the transformation programme which was looking to optimise opportunities for income and to transform services to deliver savings.

Members discussed the report noting that:

- Officers were confident in the plans put in place for transformation of services, the planning team had already successfully converged the systems from predecessor councils.

- Officers were working closely with HR colleagues to try and attract HGV drivers to work for the council and were monitoring the vehicle driver situation closely and the council was operating a Friends and Family Referral Scheme to support recruitment.

-  the delay in building projects for Children’s Services was costing the council money in terms of not being able to bring children back to Dorset, however  officers were aware of this issue and were closely monitoring the situation across the council.

-  In terms of inflation on contracts, suppliers had been advised that the council did not have the budget to cover inflation increases, unless there was a contractual agreement to do so.  Officers would share with members some of the modelling that had been done on inflation.  

- Officers would not know if the Government would provide an annual settlement figure or a multi-year figure until mid-December.

Decision

That the report be noted.                           

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

The Portfolio Holder for Finance, Commercial and Capital Strategy set out the financial management quarter 2 report. The document provided information about the Council’s forecast performance against its revenue budget in 2021/22 and the impact this could have upon reserves.

Cabinet members:

(a)  noted the Senior Leadership Team’s forecast of outturn at the end of Qtr2 including progress of the transformation and tactical savings incorporated into the budget.

(b)  noted that work continued on the capital programme, by subgroups established by the Capital Strategy and Asset Management Group (CSAM).

(c)  Agreed the financial strategy statement as set out at appendix 2 of the report as the basis for financial management arrangements over the remainder of the year and into the Medium-Term Financial Plan (MTFP) period.  The statement incorporated much of the work being taken forward in response to the LGA finance peer review.

Reason to note 

The Council had responsibilities to deliver within its corporate plan and it must do this within the resources made available through the revenue and capital budgets for 2021/22.  The report summarised the Council’s forecast financial performance for 2021/22 at the mid-point of the year.