Agenda item

RESOLVED: To

1.1.         Note the General Fund revenue budget outturn is forecast to be balanced at Month 11.

1.2.         Note the forecast elimination of the planned contribution to General Fund Reserves of £6.9m for 2022-23.

1.3.         Note the progress of the MTFS savings as summarised in Table 4 and detailed in Appendix 3.

1.4.         Note the Housing Revenue Account (HRA) forecast overspend of £1.2m.

1.5.         Note the Capital Programme spend to date for the General Fund of £25.6m (which excludes forecast capitalisation direction of £186.6m to come) against a budget of £254.5m) with a forecast underspend of £19.7m.

1.6.         Note the Housing Revenue Account Capital Programme spend to date of £21.6m (against a budget of £27.4m), with a forecast underspend of £0.7m.

1.7.         Note the above figures are predicated on forecasts from Month 11 to the year end and therefore could be subject to change as forecasts are made based on the best available information at the time.

1.8.         Note the Council continues to operate Spending Control Panels to ensure that tight financial control and assurance oversight are maintained. A new financial management culture is being implemented across the organisation through increased scrutiny such as the monthly assurance meetings, improved communication, and budget manager training from CIPFA.

The Executive Mayor considered the Month 11 Financial Performance Report 2022/23 which provided the Council’s forecast outturn as at Month 11 (February 2023) for the General Fund, Housing Revenue Account and the Capital Programme. The report formed part of the Council’s financial management process for publicly reporting financial performance monthly.

The Executive Mayor highlighted that the Council continued to ensure tight financial control and assurance oversight were maintained in line with the Mayor’s priority to ensure the council balanced its budget. This had been a reflection following the Financial Performance report for Period 2 that had shown a projected overspend of £12 million pounds and further optional risks totalling £14 million pounds.

The Executive Mayor welcomed the positive General Fund revenue forecast outturn for Month 11 that had shown a balance position for the sixth month in a row. The report further addressed the potential risks of £0.3 million pounds and nil opportunities - risks and opportunities had diminished in the latter part of the financial year, as in-year financial forecasting accuracy had been improved and the potential impacts of risks and opportunities had been revealed.

The Executive Mayor thanked officers for their diligence in this area.

The Cabinet Member for Finance, Councillor Cummings, addressed the Cabinet and stated that the housing revenue account was in line with expectation. In terms of the capital programme there was a significant gap with the current actual and forecast overspend due to the capitalisation directions which had not been applied and an underspend of £20.4 million pounds which was to be reviewed. Further, the report highlighted an improvement with the narrative within each department. The risk highlighted was the potential for additional issues for any account, which had yet to be signed off. Finally, the service had met their target for the first account to be signed off for the end of June. 

The Shadow Cabinet Member for Finance, Councillor Young, welcomed the actual forecast for General Fund for 2022-23 as a balanced budget presented to Cabinet and raised a question around the underspend on staff vacancies across departments where an underspend could affect the 2023/24 financial year.

In response, the Interim Corporate Director of Children, Young People and Education, Debbie Jones, informed Cabinet of the position Children’s Social Care were in. Recruitment to social workers had been a challenging issue. Further, the service attempted to recruit and fill all vacancies which included agency staff. There was a recruitment strategy and a positive response to senior staff, though basic grade social workers continued to be a huge challenge and therefore the service was to review the circumstances of uncovered vacancies. The turnover and vacancy rate were below the London average, which resulted in an approved underspend within the services.

Additionally, the Corporate Director for Adults Social Care, Annette McPartland, informed Cabinet that the Adult Social Care Service had considered skill mixing across with Health colleagues and partners and also across South West London to ascertain how social workers could be brought in and trained; there was also a brilliant programme for newly qualified social workers for both children and adults services, and services were also using apprenticeships. Services were doing all they could to recruit and retain staff in a difficult market.

Further, the Assistant Chief Executive Officer, Elaine Jackson shared with Cabinet on the People Strategy that this year the service had developed a co-design with colleagues within their networks. In addition, there was exciting work with Palace for Life to bring young people in through the front door apprenticeship level; further the service was working together with health colleagues in Croydon. This was positive for the organisation.

The Executive Mayor acknowledged the work all services were going through particularly in retaining and recruiting staff; and welcomed the discipline and remaining balance in the financial year.

The Executive Mayor in Cabinet RESOLVED: To

1.1.         Note the General Fund revenue budget outturn is forecast to be balanced at Month 11.

1.2.         Note the forecast elimination of the planned contribution to General Fund Reserves of £6.9m for 2022-23.

1.3.         Note the progress of the MTFS savings as summarised in Table 4 and detailed in Appendix 3.

1.4.         Note the Housing Revenue Account (HRA) forecast overspend of £1.2m.

1.5.         Note the Capital Programme spend to date for the General Fund of £25.6m (which excludes forecast capitalisation direction of £186.6m to come) against a budget of £254.5m) with a forecast underspend of £19.7m.

1.6.         Note the Housing Revenue Account Capital Programme spend to date of £21.6m (against a budget of £27.4m), with a forecast underspend of £0.7m.

1.7.         Note the above figures are predicated on forecasts from Month 11 to the year end and therefore could be subject to change as forecasts are made based on the best available information at the time.

1.8.         Note the Council continues to operate Spending Control Panels to ensure that tight financial control and assurance oversight are maintained. A new financial management culture is being implemented across the organisation through increased scrutiny such as the monthly assurance meetings, improved communication, and budget manager training from CIPFA.