Issue - meetings

Dave Shipton (Head of Finance, Policy, Planning, Strategy) was in attendance for this item

1. Mr Collins (Deputy Leader of Kent County Council) introduced the report that provided details of the outturn position for the financial year 2024-25. The Year ended with a with a revenue overspend of £20.2 million, representing 1.4% of the £1.43 billion budget. The overspend was primarily driven by pressures in Adult Social Care and Health, which accounted for £46.4 million, and reflected national trends across county councils. Approximately 40% of the overspend related to undelivered savings, much of which was expected to be achieved in future years.

Additional pressures were noted in Growth, Environment and Transport, due to changes in the national concessionary travel scheme and increased waste and highways costs. These were partially offset by underspends in Children’s Services, particularly in Home to School Transport, and in non-attributable costs, where higher investment returns and lower borrowing costs contributed to a £14 million underspend.

Schools delegated budgets overspent by £30.3 million, driven by rising demand for Special Educational Needs provision, increasing the Dedicated Schools Grant deficit to £97.5 million. This remained under review through the Department for Education’s Safety Valve programme, with further government proposals expected in the autumn.

The capital programme experienced significant slippage, with £253 million spent against a £429 million approved budget, and £185 million rephased into future years due to project delays.

2. Mr Shipton reminded Cabinet of the challenges in forecasting demand-led services. As part of the approved budget strategy for 2024–25, it was agreed that no centrally held contingency would be maintained. Consequently, any variance in demand forecasts would be absorbed by the General Reserve. This approach was adopted to improve transparency and to reinforce to managers that no central contingency was available. The associated risk was acknowledged, and the General Reserve was strengthened accordingly.

3. RESOLVED that Cabinet agree to:

a)    NOTE the capital and revenue outturn position for 2024-25

b)    AGREE that £0.6m is rolled forward to fund existing criteria (see Roll forward requests)

c)    AGREE the drawing down from General Fund Reserves to fund the 2024-25 overspend

d)    AGREE the capital slippage/re-phasing from 2024-25 will be added to the 2025-26 and later years capital budgets (as per Section 4)

e)    NOTE the review of the capital programme (as per Section 4)

f)     AGREE the proposed capital cash limit changes (as per Section 4)

g)    AGREE the changes made as a result of the Reserves Review (see Reserves)