Reason for the decision
Given the Council’s financial position, Cabinet now receives a monthly monitoring report setting out the latest forecast and actions being taken to balance the budget by the end of the financial year. Adjustments to the capital budgets require approval from Cabinet.
Background – Provide brief additional context
The report on the Council’s financial position as at the end of December 2023 will be reported to Cabinet on 21 March 2024 which shows a forecast overspend of £30.0m before management action. The forecast overspend presents a significant risk to the Council’s financial sustainability. The report identifies management action to help reduce the budget gap for 2024-25 and the MTFP.
Options (other options considered but discarded)
The finance monitoring report could continue to be provided quarterly but it is critical that the financial position is considered more regularly to ensure the decisions needing Cabinet approval to balance the budget can be taken as quickly as possible.
How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026
Framing Kent’s Future (FKF), the KCC Strategic Statement, was approved at County Council in May 2022 and sets out the council’s ambition and strategic priorities until 2026. FKF acknowledged the significant financial and demand pressures the council would be facing over the coming four years, whilst concurrently delivering an ambitious agenda for Kent residents, businesses, and local communities. The Securing Kent's Future plans and this related Finance Monitoring report 2023-24 reflects the need to confirm a re-prioritisation of Council business within the framework of Framing Kent's Future - further details are set out within the “Securing Kent's Future” Cabinet report.
How the proposed decision supports Securing Kent’s Future
Securing Kent’s Future (SKF) acknowledges that given the significance of adults and children’s social care within the council’s budget, and that spending growth pressures on the council’s budget overwhelming (but not exclusively) come from social care, that the priority of delivering New Models of Care and Support must take precedence over the other priorities in Framing Kent’s Future. This creates an expectation that council services across all directorates must collectively prioritise delivering the new models of care and support objective as a collective enterprise.
The Finance Monitoring report for 2023-24 provides the detail of the latest financial position and the relevant information on the progress being made in terms of the savings and management actions to reduce the budget gap for 2024-25 and the MTFP.
Decision type: Key
Decision status: Recommendations Approved
Notice of proposed decision first published: 13/03/2024
Reason for urgency:
This decision will be subject to Semi-urgent proceedings
Decision due: Not before 21st Mar 2024 by Cabinet
Reason: This decision will be taken via the semi-urgent decision process
Lead director: John Betts
Contact: Cath Head, Head of Finance Operations Email: cath.head@kent.gov.uk or 03000 416934 Email: cath.head@kent.gov.uk Tel: 01622 221135.
Consultees
This report was presented to Cabinet on 21 March 2024
Finance monitoring progress reports will be considered at every Cabinet meeting, to ensure there is a clear focus on Securing Kent’s Future until the council’s financial position is stabilised.
Financial implications: This finance monitoring report sets out the latest forecast overspend position and the underlying structural budget deficits which need to be addressed. The savings and management actions set out in the report need to be delivered to ensure the council’s budget is balanced by the end of the financial year, and further actions to reduce costs that will impact the 2024-25 budget also need to be identified. The Council will need to continue to limit its actions to focus on the most essential activities and priorities until the financial position is brought under control and stabilised.
Legal implications: This is in accordance with the financial procedures as set out in the Constitution, the Financial Regulations and Code of Corporate Governance. The current financial situation and operating environment presents a number of material risks to the Council. It is important that the plans identified to improve resilience are delivered in order to avoid further escalation and action. Securing Kent’s Future notes the increased legal risk faced by the Council and the actions and monitoring position will need to be continually reviewed.
Equalities implications: Equalities implications: No direct service impact from the monitoring report– the equalities implications of the savings and management actions will be managed at service level. Data Protection implications: None