Issue - meetings

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

(a)  That the senior leadership team’s forecast of the full year’s forecast outturn for the Council, made at the end of Quarter 2, including progress of the transformational and tactical savings incorporated into the budget, be noted.

(b)  That Cabinet identify the priority areas for changes to be made to close the in-year budget gap.

(c)  That Portfolio Holder’s work with officers to continue to identify and develop further in-year efficiencies and savings to minimise use of reserves.

(d)  That the capital programme for 2023/24 and updated capital plan for 2023/24 – 2027/28 be noted.

Reason for the decision

The Council has responsibilities to deliver within its corporate plan and it must do this within the resources made available through the revenue and capital budgets for 2023/24.  This report summarised the Council’s forecast financial performance for the year at the end of the second quarter.

The Portfolio Holder for Finance, Commercial and Capital Strategy set out the Quarter 2 financial management report. He advised members that the council was forecasting a net budget pressure of £11.985m which represented 3.4% of the council’s budget requirement (£347.6m).  Overall, the Quarter 2 position had worsened by £1.6m since Quarter 1. He further reported that the Place Directorate remained the area under the most pressure due to inflation issues and the impact on the cost of travel.

The Portfolio Holder advised that he could not, at this point, give assurance for the outcome for the full year.  Cllr G Suttle proposed the recommendation, and this were seconded by Cllr L Beddow.

In response to questions and comments from non-executive members, the Portfolio Holder and the Executive Director for Corporate Development confirmed that:-

·       In respect of travel costs, officers were working on route optimisation to see how the council could reduce costs by getting children to school safely, but at a lower cost. The Portfolio Holder hoped to see some reduction in these costs by the 3rd Quarter. However, it was acknowledged that this was also a national problem.

·       In respect of the reserves there was approximately £140m of earmarked reserves, some of which could be repurpose if it was required.

·       Officers’ assessments indicated that the council was in a high-risk financial situation, and this was the internal messaging being passed on to staff. However, Dorset Council was not on any government high-risk financial list because the council currently had a healthy level of reserves in place.

·       The transformation programme under “our Future Council” would be fundamental shift in how services were provided by the council, and in doing so would make efficiencies and savings.

·       That, outside of the meeting the Portfolio Holder and Section 151 officer would meet with the Chairman/Vice Chairman of Scrutiny to discuss the budget shortfall.

Cabinet members acknowledged the current position and supported the recommendations.

Decision

(a)           That the senior leadership team’s forecast of the full year’s forecast outturn for the Council, made at the end of Quarter 2, including progress of the transformational and tactical savings incorporated into the budget, be noted.

(b)           That Cabinet identify the priority areas for changes to be made to close the in-year budget gap.

(c)           That Portfolio Holder’s work with officers to continue to identify and develop further in-year efficiencies and savings to minimise use of reserves.

(d)           That the capital programme for 2023/24 and updated capital plan for 2023/24 – 2027/28 be noted.

Reason for the decision

The Council has responsibilities to deliver within its corporate plan and it must do this within the resources made available through the revenue and capital budgets for 2023/24.  This report summarised the Council’s forecast financial performance for the year at the end of the second quarter.