Purpose

Quarterly report

Content

This report set out the
forecast Revenue and Capital outturn position for Buckinghamshire
Council for the financial year 2024/25 as at Quarter 2.  The Council continued to experience significant
financial pressures due to increases in demand, complexity of need
and market insufficiency in key services, primarily High Needs
Block (DSG), Children’s Social Care, Home to School
Transport, Temporary Accommodation and Adults Social Care. These
pressures were in line with those being experienced
nationally.
 
The forecast revenue outturn
position at Quarter 2 was an adverse variance of £8.4m (1.7%
of Portfolio budgets) compared with £6.5m reported in Q1.
This was primarily due to pressures in Education and
Children’s Services around additional placements for Looked
After Children, Transport Services linked to increases in demand in
Home to School Transport and in Climate Change & Environment
due to Waste Collection contract costs and income pressures in the
Waste Service.  
 
Within the overall position
there was an adverse variance of £14.3m (3%) in Portfolios
(£10.0m last quarter) offset by a £5.8m (£3.5m
last quarter) favourable variance in Corporate & Funding. The
forecast for the Dedicated Schools Grant budget was an in year
deficit of £13.1m (£7.7m Q1), primarily due to ongoing
pressures within the High Needs Block. An Action Plan had been
developed to address the significant issues in this
area.
 
The forecast position on
capital budgets £185.1m against a budget of £181.8m, a
net accelerated spend of £3.3m (1.8% of the budget).
£4.4m accelerated spend related to the Highways contract
linked to Structures and Plane and Patch. The budget included an
approved savings programme totalling £95.3m over 3 years with
£41.3m of additional income and savings to be delivered in
2024/25.  Delivery of savings for
2024/25 (including in-year mitigations) was currently forecast at
98.1% after taking into account mitigations (97% last quarter) with
£0.8m (1.9%) of unmitigated pressures included in the adverse
variance reported above.
 
Actions would continue to be
required to closely manage the in-year financial
position.
 
Paragraph 2.3 of the report
needed to be corrected to say £14.3m.
 
RESOLVED –  That the Quarter 2
Budget Management Report 2024-2025, and the risks and opportunities
contained within it, be NOTED.