Agenda item

Cabinet received a report providing the budget monitoring position up to 31 July 2017-18 for both revenue and capital budgets, including an update on key activity data for KCC’s highest risk budgets.

Mr John Simmonds, Cabinet Member for Finance, introduced the item for members; in particular he referred to the following:

      i.        That the predicted overspend had been reduced by management action from £18.9million in the last report to just under £11million in the report being considered but that this was still considered to be significant and would be very difficult to reduce to zero in order to deliver a balanced budget. 

    ii.        That delivering a balanced budget was becoming harder owing to the sustained period of government grant and funding cuts and would be more difficult year on year if it continued.  He welcomed the extra monies that had been received for work in Social Care but reminded members that it was not sufficient to keep pace with the increase in demand.

He concluded by reassuring members that he was confident a balanced budget could still be achieved this year.

Mr Paul Carter, Leader and Cabinet Member for Traded Services and Health Reform, spoke to the item; he agreed with Mr. Simmonds comments and concerns and particularly the assertion that each year would become increasingly difficult owing to the cumulative effect of 7-8 years of funding reductions and related expected savings.  He hoped that the government would reflect on funding levels for local government and increase the offer, in particular to the upper tier councils in two tier authorities such as KCC who had been under particular pressure.

Andy Wood, Corporate Director of Finance and Procurement assured members that all Corporate Directors and their management teams were fully committed to reducing the predicted overspend.  He reported that it was still his opinion, in light of the absolute commitment demonstrated by Corporate Directors, that moratoria were not necessary or desirable at this stage but would be kept under monthly review. 

He believed that, though difficult, a balanced budget would be achieved in this financial year.

In response to a request from the Leader, Andy Wood reported the slippage on the Capital Programme, at Page 24 of the report.  There was currently £12million of rephasing expected and this slippage was likely to increase.  As a percentage of the overall programme the slippage was modest and not overly concerning.

In response to questions from Mr. Eric Hotson, Cabinet Member for Corporate and Democratic Services, the Leader assured members that much pressure was being exerted on government regarding the need for increased funding.  The Local Government Association in particular, was lobbying for several billion of additional funding over the next 2-3 years.  Mr. Carter argued that evidence showed County Council’s in two tier authorities to have been hardest hit by funding reductions and therefore should be considered first for financial relief should any be forthcoming.  He assured members that he had made, and continued to make these points at the highest levels of government.

Mr Balfour, Cabinet Member for Planning, Highways, Transport and Waste thanked on behalf of Cabinet those working for the county council who had made such efforts to make savings to date and was supported in his thanks by the Leader.