Content

That Cabinet note the forecast revenue budget
overspend of £533,000, representing a forecast 0.2% variance
against the approved budget for the year.
 
That Cabinet note the budgetary risks that are
inbuilt into this forecast, namely:
 

·       
The volatility of demand for high-cost services, particularly in
Adults & Children’s Social Care;

·       
Higher inflation levels currently being experienced than originally
budgeted for;

·       
The risk of further non-delivery of the £10.7m of budgeted
savings targets, with services currently forecasting 92.1%
delivery;

·       
The trend of reducing debt recovery, particularly within Council
tax and Social Care where there has been a slowing down in
collection rates, and where there are increasing numbers of
discounts and exemptions being awarded;

·       
The potential impact upon the Council’s financial resilience
from the forecast increase in the cumulative schools reserves
deficit that is being carried on the Council’s balance
sheet.
 
That Cabinet notes
that confirmation has been received for funding related to the
increased cost of Employers’ National Insurance
Contributions, resulting in a funding shortfall of £811k or
24% compared to the actual cost increases. The Council will use its
contingency budget of £850k to address this shortfall, as
reflected within this forecast.
 
That Cabinet note
the forecast increase in the deficit on cumulative schools reserves
as outlined in Appendix 4 of this report of £2,835,000. This
would result in school balances ending the financial year in a
deficit of £6,926,000, with eighteen of thirty-five schools
forecast to be in a deficit balance.
 
That Cabinet note
that schools which are budgeting to end the 2025/26 financial year
in a deficit balance are required to bring forward recovery plans
by October half term to ensure that the proposed actions to address
their budget shortfalls are instigated.