URL: https://democracy.monmouthshire.gov.uk/ieDecisionDetails.aspx?ID=1145

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: That Cabinet note the forecast revenue budget overspend of £533,000, representing a forecast 0.2% variance against the approved budget for the year.   That Cabinet note the budgetary risks that are inbuilt into this forecast, namely:   ·        The volatility of demand for high-cost services, particularly in Adults & Children’s Social Care; ·        Higher inflation levels currently being experienced than originally budgeted for; ·        The risk of further non-delivery of the £10.7m of budgeted savings targets, with services currently forecasting 92.1% delivery; ·        The trend of reducing debt recovery, particularly within Council tax and Social Care where there has been a slowing down in collection rates, and where there are increasing numbers of discounts and exemptions being awarded; ·        The potential impact upon the Council’s financial resilience from the forecast increase in the cumulative schools reserves deficit that is being carried on the Council’s balance sheet.   That Cabinet notes that confirmation has been received for funding related to the increased cost of Employers’ National Insurance Contributions, resulting in a funding shortfall of £811k or 24% compared to the actual cost increases. The Council will use its contingency budget of £850k to address this shortfall, as reflected within this forecast.   That Cabinet note the forecast increase in the deficit on cumulative schools reserves as outlined in Appendix 4 of this report of £2,835,000. This would result in school balances ending the financial year in a deficit of £6,926,000, with eighteen of thirty-five schools forecast to be in a deficit balance.   That Cabinet note that schools which are budgeting to end the 2025/26 financial year in a deficit balance are required to bring forward recovery plans by October half term to ensure that the proposed actions to address their budget shortfalls are instigated.

Date of Decision: October 15, 2025