Cabinet to review council’s projected performance for 2018/19
Herefordshire Council’s Cabinet will today (Thursday 13 December 2018) review the mid-year corporate budget and performance report for 2018/19. View the Cabinet agenda on the Herefordshire Council website.
As of September 2018, the revenue outturn was a projected overspend of £1.184m by the end of the 2018/19 financial year.
The forecast overspend comes as Herefordshire Council strives to meet its corporate priorities ‘to keep children and young people safe’ and ‘to enable residents to live safe, healthy and independent lives’. The council continues to face significant pressure to meet an increased demand for residential placements for adults with learning disabilities. There has also been an increase in looked after children needing residential placements, with the cost increasing due to the lack of suitable placement options available.
From the 2018/19 capital budget, there is a current forecast spend of £65.4m against an adjusted budget of £71.4m to reflect the approval of decisions for capital spending since the publication of the first quarter accounts. This gives a forecast underspend of £6m. The forecast will continue to fluctuate over the year as the budget is spent on capital schemes.
Planned capital spending for 2018/19 includes £1.253m for pothole repair in response to last winter’s severe weather (a total of £12.8m for highways management), £3.5m (£2m of which is a short-term loan) to support the development of a Cyber Security Centre and £1.5m to support the conversion of the Hillside rehabilitation centre to provide a nursing home facility for older people with complex mental health needs (such as dementia) in response to rising demand for this type of care.
The majority of projects are being delivered to schedule with 52% of Corporate Delivery Plan performance measures showing improved or stable performance. Action plans are being developed to address the in-year pressures which may affect meeting the targets set in the council’s Corporate Delivery Plan.