Background:
This report detailed the revenue budget forecasts as at the end of Quarter 2 (July – September 2011). The report also highlighted the major financial risks remaining in respect of the 2011/2012 General Fund revenue budget.
It was noted that the returns from budget managers forecast a potential overspend of £5.1 million for non-Dedicated School Grant (DSG) services and it was reported that the position had the potential to undermine the financial stability of the Council. It was therefore essential that directorate management teams focussed attention on identifying management action to contain expenditure within the agreed budgets.
The Cabinet agreed to accept this report as urgent to enable Cabinet to receive and consider the second quarter budget monitoring information at the earliest opportunity.
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Decision number: |
Decision: |
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148/2011 |
The Cabinet noted the mid year revenue monitoring position for 2011/2012 and instructed Directors to come forward with further proposals for management action to reduce the potential deficit. |
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149/2011 |
The Cabinet, to help prevent the position deteriorating further, instructed officers to impose a moratorium such that any expenditure that is not absolutely essential for the continued delivery of services to our customers must be stopped. |
Reasons:
Cabinet has the responsibility to ensure effective budgetary control to contain expenditure within the approved limits set by Council. Where a budget overspend is forecast, Cabinet supported by the corporate management team must identify measures to remove any excess expenditure.