Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 11, 2025

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 3. 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 3 was an adverse variance of £6.2m (1.2% of Portfolio budgets) compared with £8.4m reported in Q2. The adverse variance was primarily due to pressures in Education and Children’s Services around additional placements for Looked After Children, Transport Services from increases in demand in Home to School Transport, Adult Social Care due to increases in demand and complexity, and in Climate Change & Environment due to Waste collection costs and income pressures.   Within the overall position there was an adverse variance of £12.9m (3%) in Portfolios (an improvement of £1.3m from last quarter’s forecast of £14.2m) offset by a £6.7m (£5.8m last quarter) favourable variance in Corporate & Funding.  Although an adverse variance was still forecast, the portfolio position had improved due to actions taken to contain the forecast as much as possible.   The forecast for the Dedicated Schools Grant budget was a deficit of £14.8m (£13.1m Q2), primarily due to ongoing pressures within the High Needs Block. An Action Plan to reduce spend and introduce more rigorous control over new packages was being further developed but this had not been sufficient to fully mitigate the demand in the system.   The forecast position on capital budgets was £173.1m against a budget of £183.1m, which was a variance of (£10.0m) or 5.5%. This remained within the Cabinet performance target of 90% delivery of the capital programme.   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 was currently forecast at 1.4% above target with a total £0.59m of savings above budget. This was helping to manage the overall position against a background of challenging demand pressures.   Actions would continue to be required to closely manage the in-year financial position.   RESOLVED that the report and the risks and opportunities contained within it be NOTED.