Cabinet of the full year forecast as at Quarter 2 for 2019/20. He explained that the current revenue position was that the Council was forecasting a deficit of £123k compared to a budget deficit of £235k. It was noted that the capital budget had changed and Cabinet were being asked to approve the additional work relating to the replacement of Air Conditioning Units in the IT Server Room at the Council offices. Two schemes would be removed, subject to Cabinet approval (OEP Phase 2 and the Officers Mess) because they were no longer viable.

Cabinet were informed that the Medium Term Financial Plan (MTFP) had been updated and noted that there was a need for caution due to increased uncertainty with the impending General Election and a lack of clarity with regards to the amount of funding that would be received from Government.

In response to questions raised, the Strategic Director for People stated that recruitment was currently underway for foster carers but noted that the use of Independent Fostering Agencies was sometimes a necessity as there were instances whereby there was a lack of suitable foster carers to match the needs of the child that were available for the Council to use.

RESOLVED:

a)     That the forecast 2019/20 revenue and capital outturn position as at Quarter 2 (Appendix A, section 1 and section 2 of the report) be noted.

b)     That it be recommended to Council to remove two projects from the capital programme:  officers mess and OEP Phase 2

c)     That an addition to the capital programme of £30k for new air conditioning units for the IT Server room be approved

d)     That the impact on the MTFP of the Spending Round 2019 (Appendix A Section 3 of the report) be noted.

e)     That potential future pressures and savings (Appendix A, Section 1.4 of the report) be noted

Reason for the decision:The Q2 position has changed significantly since Q1, but the movement represents 1% of the Net Cost of Services and is not unusual because officers now have more information to make forecasts in demand-led areas and a better understanding of the likelihood of recruiting to vacant posts and the costs of plugging any gaps with interims.