Purpose

For information

Decision

The report set out the Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2023/24. The Council had experienced significant financial pressures due to increases in demand, complexity of need and market insufficiency in key services, primarily in;

a) Children’s Social Care (£7.2m adverse variance) due to a reduction in foster placements and national placement sufficiency issues;

b) Home to School Transport (£3.9m) due to increased SEN and PRU transport requirements;

c) Adults Social Care (£3.6m adverse variance) due to growth in client number, increased cost of packages in Residential and Nursing care and supported living;

d) Temporary Accommodation (£1.3m adverse pressure) due to increased demand and above-inflation price increases, throughout the year.

These services had seen cost and demand increase significantly in excess of the budgeted position, which reflected national and economic issues rather than local variation. This had resulted in an adverse outturn position of £12.8m (3%) in Portfolio budgets (£13.6m last quarter). During the financial year mitigating actions had been taken, through Cabinet member action plans, and enhanced expenditure and vacancy controls. As a result, the Council had managed to achieve a balanced revenue position overall, due to favourable variances in Corporate & Funding, use of £2.8m from contingency and effective processes for managing financial risks. This is an improvement in the position of £4.5m from the Quarter 3 reported position and a further £4.1m improvement from the Quarter 2 reported position of £8.6m.

As a result of the strong financial management actions, it was recommended that the balance on corporate contingencies be contributed to reserves to support member priorities and manage risks. The outturn position for the Dedicated Schools Budgets was an overspend of £4.3m (£1.8m last quarter), resulting in an overall deficit reserve of negative £6.5m.

The year end position on capital was spend of £115.4m, £7.5m less than the total budget of £122.9m, equating to 94% delivery (83% in last financial year). Capital projects which were successfully completed this year include the £2.5m Conversion of the Old Wycombe Library, the £0.4m Haydon Hill Cycle Way and £1.4m on a large number of sports and leisure projects. In addition, £17.4m had been spent on the schools’ programme and over £42m has been spent on capital improvements to the strategic highways network. The variance of £7.5m consisted of accelerated spend ahead of profile of £10.9m, slippage to be re-programmed into future years of (£17.2m), overspends of £1.4m, and underspends of (£2.6m).

RESOLVED

1. That the report and success in achieving an overall balanced revenue outturn position for 2023-24 be noted. 

1. That the transfers to reserves as set out in paragraph 2.6 of the Cabinet report be approved. 

1. That the overall capital outturn position of £115.4m of investment in the Council’s priorities be noted. 

1. That the carry forward of capital budgets be approved, as detailed in Section 4 of the Cabinet report.