Decision details

This report set out the forecast Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2024/25 as at Quarter 2.  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 2 was an adverse variance of £8.4m (1.7% of Portfolio budgets) compared with £6.5m reported in Q1. This was primarily due to pressures in Education and Children’s Services around additional placements for Looked After Children, Transport Services linked to increases in demand in Home to School Transport and in Climate Change & Environment due to Waste Collection contract costs and income pressures in the Waste Service.  

Within the overall position there was an adverse variance of £14.3m (3%) in Portfolios (£10.0m last quarter) offset by a £5.8m (£3.5m last quarter) favourable variance in Corporate & Funding. The forecast for the Dedicated Schools Grant budget was an in year deficit of £13.1m (£7.7m Q1), primarily due to ongoing pressures within the High Needs Block. An Action Plan had been developed to address the significant issues in this area.

The forecast position on capital budgets £185.1m against a budget of £181.8m, a net accelerated spend of £3.3m (1.8% of the budget). £4.4m accelerated spend related to the Highways contract linked to Structures and Plane and Patch. 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 (including in-year mitigations) was currently forecast at 98.1% after taking into account mitigations (97% last quarter) with £0.8m (1.9%) of unmitigated pressures included in the adverse variance reported above.

Actions would continue to be required to closely manage the in-year financial position.

Paragraph 2.3 of the report needed to be corrected to say £14.3m.

RESOLVED –  That the Quarter 2 Budget Management Report 2024-2025, and the risks and opportunities contained within it, be NOTED.