Decision details

Financial Planning Report: Allocating Resources to Outcomes

Decision Maker: Cabinet, Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

The July Finance Review will provide an update on the economic outlook, the Council's draft financial outturn for 2013/14, risk areas and revenue budget implementation plans for 2014/15 and the Capital Investment Programme and asset disposals strategy. The report will also include an outline of the Commissioning Plans for 2015/16 and 2016/17.

Decisions:

(Report 22/14-15 and appendices), (Key decision – call-in deadline Friday 25 July 2014)

 

The Deputy Leader, Finance and Investment, introduced the report and noted that the Council that the council had a three year funding deficit of £96 million for the period 2014/15-2016/17.   The Council therefore needed to commission well and would prioritise the services which the residents cared most about.  

 

The following Cabinet Members made the following points:

 

·         The Cabinet Member for Health and Wellbeing welcomed the report as a summary which set out the responsibilities and requirements of the Council to provide services which in the areas such as health and wellbeing there was a growing and changing demand at a time when resources were reducing.  Services needed to be procured differently and the Council needed to use public health funding in order to move to a prevention agenda.

 

·         The Cabinet Member for Early Years, Youth & Families said that the area of significant overspend children’s social care had been managed within the budget.  The Council could not turn away from the people who needed help and was committed to supporting vulnerable people.   The council had recently been awarded £38 million for the Lambeth Early Action Partnership as set out on page 119 of the agenda. 

 

·         The Leader of the Council said that the LEAP funding was excellent news and was a good example of the Council’s partnership work.

 

·           The Cabinet Member for Children & Adult Services said that the Council needed to transform its services which would be a massive change for it and its partnership organisations. 

 

In response to questions raised by Members the Strategic Director of Enabling made the following points:

 

·         The report gave a foundation for the work of the outcomes panel.  It set out the overall resources that the Council would invest in the three outcomes.  

 

·         The Council would continue to monitor the budgets as it had done over the past three years when cuts of £79 million had been made.  Improvements were being made to financial monitoring information.

 

RESOLVED:

 

1)    To agree the approach to Resource Allocation being developed to support co-operative commissioning and to direct Outcome Panels to develop commissioning plans and capital investment proposals to deliver outcomes within the resource envelopes set out in Section 2.

2)    To re-affirm the Council’s commitment to delivering the existing revenue savings plans for 2014/15 (£25.4m savings) and 2015/16 – 2016/17 (£37.6m savings) as set out in paragraphs 2.5 to 2.13.

3)    To note the 2013/14 General Fund outturn of £332.45m against a budget of £332.66m.

4)    To note the balanced outturn for the 2013/14 HRA.

5)    To note the 2013/14 Capital Investment Programme outturn of £183.6m against a budget of £186.0m and note the overview of Capital Investment of £543m over the four years to 2013/14 in Appendix 6.

6)    To note the key revenue risks for 2014/15 as set out in paragraph 4.27 onwards.

7)    To recommend approval of the revenue virements set out in paragraphs 4.36 and 4.37.

8)    To agree the proposed three year Capital Programme 2014-17 of £439.4m as described in paragraphs 5.16 to 5.18 and summarised in Appendix 4 with effect from 14th July 2014.

9)    To note the successful Big Lottery Bid which will fund the Lambeth Early Action Partnership (LEAP), as detailed in paragraph 2.8.

 

Report author: Frank Higgins

Publication date: 18/07/2014

Date of decision: 14/07/2014

Decided at meeting: 14/07/2014 - Cabinet

Effective from: 26/07/2014

Accompanying Documents: