Agenda item

This report details the revenue budget forecasts as at the end of July 2014. The report also highlights the major financial risks remaining in respect of the 2014/15 General Fund revenue budget. 

Discussion:

The Head of Finance Strategy presented the revenue budget forecast as at the end of July 2014, highlighting that after agreed management action, the forecast outturn for 2014/15 was estimated at £4.2 million.

Members raised a number of points and questions including:

Children and Adult Services – Following a question regarding the reduction of £156,000 to the Inclusion and School Improvement forecast, the Head of Finance Strategy confirmed that costs associated with increasing numbers of permanently excluded pupils were eligible to be met from an underspend in the high needs block of the Dedicated Schools Grant and that this did represent a real saving as the DSG was ring fenced and any underspend would otherwise have to be held in DSG reserves.

Public Health – With reference to the Public Health Grant members referred to a report considered by the Health and Adult Social Care Overview and Scrutiny Committee on 30^th September which advised members of the forthcoming expiry of the Health and Lifestyle Trainers (HALT) contract with Sunlight Development Trust and a proposal to suspend procurement of this service whilst budget deliberations for 2015/16 were underway. Members asked if cessation of this service would represent a real saving given that the public health grant was ring fenced. Concern was also expressed about the possibility of the HALT service being discontinued given its contribution to a reduction in health inequalities. Members felt there were governance issues arising from the absence of detailed information, an impact assessment and any analysis of the effect of the contract cessation on the financial position of the Sunlight Development Trust in the report to the HASC Overview and Scrutiny Committee.

In response the Chief Finance Officer referred members to the timetable for the 2014/15 budget process as set out in the report on the Medium Term Financial Plan 2014/18 report at page 146 on the agenda. He confirmed that no decisions had yet been taken about the 2014/15 budget. Portfolio holders were currently identifying possible savings and as the HALT Contract was due to end at the end of November there was a rationale to suspend procurement of the service whilst wider synergies across the organisation were examined.

The Monitoring Officer confirmed that the timing of the report on the HALT contract to HASC Overview and Scrutiny Committee outside of the normal budget reporting timetable was a consequence of the expiry of the HALT contract at the end of November and acknowledged concerns raised about the lack of detailed information available to the Committee.

Members expressed the view that Public Health should be testing the efficacy of the HALT service and possible alternatives before proposing cessation of the contract. Questions were also raised about the cost of the service and whether value for money was being achieved.

Members sought assurances that funding legally ring fenced for public health would not be redirected to address unrelated pressures in other service areas. The Chief Finance Officer advised there was a high level of variation up and done the country in terms of allocation of public health budgets and that local authorities were not all doing the same things. He advised it was appropriate and permissible for members to review and take decisions on how best to allocate public health resources.

It was noted that there would be further discussion about the HALT service at the HASC Overview and Scrutiny Committee as part of the budget process.

Decision:

The Committee noted the forecast outturn position and proposed management actions following round 1 of quarterly revenue monitoring for 2014/15.