Issue - meetings

To receive a report on the third financial review for Children and Families services for the financial year 2024/25.

The Committee considered a report which provided the forecast outturn for the financial year 2024/25 based on income, expenditure, and known commitments as at the end of October 2024. It also identified actions that were being taken to address adverse variances to urgently address the Council’s financial sustainability.

Although the position for Children and Families remained unchanged with a forecast overspend of £5.4m there had been increases in the social care area which was offset by reductions in other areas such as school catering.

The DSG (Dedicated Schools Grant) deficit was in the region of £116m for the end of 2024/25. 

Whilst the report provided the forecast outturn for all services, members were asked to focus their scrutiny on the forecasts and supporting information relating to services within the remit of the Committee whilst understanding the overall context as a whole.

In response to members comments and questions officers reported that

-       A request for information on the original MTFS plan for capital items to be included in reporting of the current forecasts would be fed back to the central finance team.

-       a written response would be provided to questions raised in relation to the capital programme, specifically around Tytherington High School, Poynton High School, and the new secondary school in Macclesfield.

-       Information on the details of the budget and spend on the ILACS funding to be included in future ILACS reports to Committee.

-       They would provide information on the involvement and approval of DfE advisors in the production and monitoring of the DSG management plan, to provide reassurance that the plan delivers Value for Money (VFM).

RESOLVED:

The Children and Families Committee

1. Reviewed the factors leading to a forecast adverse Net Revenue financial pressure of £18.3m against a revised budget of £390.5m (4.7%), scrutinised the contents of Annex 1, Section 2 of the report and reviewed progress on the delivery of the MTFS approved budget policy change items, the RAG ratings and latest forecasts, and understood the actions to be taken to address any adverse variances from the approved budget.

2. Reviewed the in-year forecast capital spending of £144.7m against an approved MTFS budget of £215.8m, due to slippage that has been re-profiled into future years.

3. Noted the available reserves position as per Annex 1, Section 5 of the report.

4. Noted the Capital Virements above £500,000 up to and including £5,000,000 as per Annex 1, Section 4, Table 4 of the report would be approved in accordance with the Council’s Constitution.