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.