Members considered the latest financial update. The Lead Member explained that during the course of recent months the council had experienced a number of challenges largely driven by increases in demand and volume of the needs of some of the most needy residents, that had exceeded budgeted expectations.  Across a number of issues the £2.5m buffer built into the budget had been largely eaten up. It had therefore been essential for Lead Members and lead officers to carefully evaluate the situation and seek to ensure all opportunities for savings or favourable revisions of forecast costs were identified. This had resulted in an impressive expectation against a demanding budget, that a balanced position would be reached at year end without the need to utilise any of the buffer.

The Lead Member explained that prior to the transfer to Achieving for Children (AfC), the council would have funded working capital requirements. The second recommendation reflected the need to transfer this facility to AfC. The maximum was set at £11.7m but in reality the maximum use so far had been £3.5m. In relation to the third recommendation, the Lead Member explained that following the finalisation of relevant government grants in education, officers and Lead Members were satisfied that although funding had reduced, there was no anticipated reduction in the quality or quantum of additional facilities or services required.

The Lead Member for Adult Services highlighted that the £1m saving identified in his area was relatively small given the entire budget for the service.  A number of windfalls had occurred. He highlighted two elements:

·                     Increased client contributions being received from older people £382,000

·                     A provision was made for a high cost ordinary residence case which was only partially required following settlement, releasing £213,000

The Chairman commented that his father-in-la had recently died and the house had been sold as his mother-in-law was in a nursing home in the borough. He had felt that the council officers who had dealt with the care funding situation for his mother-in-law had not sufficiently understood the implications for funding, despite it being a common situation. The Managing Director commented that the situation was increasingly common and had led to an increase in client contributions. There had been a number of learning points for the borough including the need to probe and question on the  eligibility to claim.

The Chairman highlighted the excellent work undertaken on CCTV and civil enforcement, which had led to some in-year pressures as the predicted savings were therefore not going to materialise. It was the right thing to have done to pause on the saving to enable the review to take place and he congratulated the Lead Member.

RESOLVED UNANIMOUSLY: That Cabinet:

i)     Notes the Council’s projected outturn position for 2017-18 and mitigating actions to address service pressures.

ii)    Adds Achieving for Children (AfC) to the Council’s lending list with a maximum limit of £11,700,000 for a revolving credit facility in accordance with the contract with AfC as detailed in paragraph 4.31.

iii)   Approves the changes to the Children’s capital programme as detailed in paragraph 4.36.