To consider a report from the Executive Member for Finance, Change and Governanceand the Director of Finance and Systems.

The Executive Member for Finance, Change and Governance presented the Budget Monitoring 2023/24 Period 10 (April 2023 to January 2024) report. The purpose of the report is to inform Members of the 2023/24 projected outturn figures relating to both Revenue and Capital budgets. It also summarises the projected outturn position for Council Tax and Business Rates.

The outturn forecast has improved from Period 8 £0.59m underspend to Period 10 £1.60m underspend, a positive movement of £1.01m, in part, because of the management actions introduced during the year to control expenditure.

Councillor Evans asked several questions regarding the pressures related to the overspend on Home School Transport and on the implications of the growing budget deficit on the High Needs Budget.

The Executive Member for Finance, Change and Governance informed members that it has been highlighted significantly the national challenge that all Councils are facing in relation to SEND and Dedicated Schools Grants and the threat this poses to many Councils.

The Director of Finance and Systems informed Members that the this has been a growing pressure over the last few years. Unmitigated Trafford’s deficit will rise even further over the next 3 to 5 years.

The Director of Children’s Services endorsed the fact that we do have a deficit position but that we are not in a position for the Council to have formal support. There are two national programmes, one being the Safety Valve Programme and the Delivering Best Value Programme which allows councils to have some of their deficit written off. We do have a deficit recovery plan and we are monitored by DfE in relation to that and we are part of a national change programme to try and implement the national SEND Plan to look at how we can reduce demand. The biggest area that we are having to focus on is having more children that are supported in all age stream schools without the need for and education health and care plan. We have seen some reduction in the number of requests for assessments to progress to EHCPs but it is early days in terms of that. Historically our position has been well managed and this is the first time we have needed a formal recovery plan.

The Director of Finance and Systems made reference to Councillor Evans point about recovering interest on the deficit  and advised that Dfe would not allow the Council to do that.

Regarding the overspend on Homes for School transport and the extra cost on Section 17 payments. The Director of Children’s Services advised that if we have more EHCP Plans there will be pressure on the Homes to School Transport budget which is not subject to the Statutory override so as long as Plans go up there will be a need for increased transport. With efficiencies we have used technology in the regard. Regarding the Section 17 budget we are working with colleagues in Finance and across the social work teams to do a deep dive to see why we have got pressures and some of those things relate to for example unaccompanied asylum seeking children and when we get some money back from the government its not full cost and other examples were given to Members.

RESOLVED: That the Executive notes the updated summary positions on the revenue budget and capital programme.