POW 11 - Review of 2022-23 Budget Savings
North Lanarkshire Council · 14 September 2022
Back to Finance and Resources Committee — 14 September 2022 and its agenda
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North Lanarkshire Council Report Finance & Resources Committee Does this report require to be approved? ☐ Yes ☒ No Ref EK/KS/VR/SD Date 14/09/22 POW 11 – Review of 2022/23 Budget Savings From Elaine Kemp, Head of Financial Solutions E-mail KempE@northlan.gov.uk Telephone 07939280601 1. Background 1.1 At its meeting of 17 February 2022, the Council approved a General Fund Revenue Budget of £887.270m. This included spend which is offset by ring fenced grants of £50.126m resulting in an opening budget position for Net Service Expenditure of £837.143m. Additional funding has since been confirmed as part of the Scottish Government budget setting, including additional directed funding to the Adult Health and Social Care, Free School Meal Expansion monies increasing the budget to £875.141m. Net savings totalling £10.484m were incorporated into the budget set on 17 February 2022. However, £2.000m of one-off resources has been set aside from General Fund reserves to manage the financial impact of the delayed implementation of the Active in Creative Communities saving of £3.058m, and £1.372m has been earmarked from the IJB reserves in respect of the delayed closure of the Muirpark f facility. These actions reduce the overall savings requirement in 2022/23 to £7.112m. Executive Summary This report provides the Corporate Management Team with an update on the achievement of the approved net savings for financial years 2022/23 of £10.484m. The council set aside one-off resources of £3.372m to manage anticipated delays in delivering savings in respect of Active & Creative Communities and the closure of the Muirpark facility, reducing the 2022/23 target to £7.112m. It is currently forecast that £5.222m (73%) of the savings will be delivered in year with the remaining balance to be delivered in future years. Recommendations It is recommended that the Committee: (1) Acknowledge the contents of this report. The Plan for North Lanarkshire Priority All priorities Ambition statement (25) Ensure intelligent use of data and information to support fully evidence based decision making and future planning
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1.2 Services are required to monitor the delivery of their target savings to ensure they remain within their approved budgets and provide periodic progress updates within individual Service revenue monitoring reports, identifying alternative solutions to any in-year shortfall envisaged. In addition, Services are required to monitor whether the original approved saving has been implemented and if not, provide an explanation along with alternative action required to ensure the recurring financial saving will be achieved going forward. 1.3 This report summarises the progress in achieving the approved savings for 2022/23. 2 Report 2.1 Approved 2022/23 Savings 2.1.1 A summary of the approved savings for 2022/23 by Service is provided at appendix 1, along with the current forecast savings achievable for the year. It is currently anticipated that £5.222m (50%) of the net approved saving will be achieved in the current financial year, leaving an in-year savings gap of £5.262m. However, as indicated above one-off resources totalling £3.372m has been approved to fund the financial impact in relation to delayed implementation of savings. Thus, reducing the current year target and in-year savings gap to £7.112m and £1.890m (26.6%), respectively. This remaining gap will be managed by alternative solutions in the year with all of these savings anticipated to be in place for the beginning of the new financial year. Therefore, there is no anticipated recurring budget impact. 2.1.2 Appendix 2 summaries the savings that will not be achieved within 2022/23, generally due to a delay in implementation. 2.2 Prior Year Unachieved Savings 2.2.1 In addition to the current year savings position, it has been acknowledged that there are ongoing challenges in delivering prior year savings. It is expected that Services continue to keep previously unachievable savings under review and identify alternative action to manage both the in-year impact and potential recurring impact. 3. Measures of success 3.1 The Council continues to operate within approved budgeted resources. 4. Supporting documentation Appendix 1 Total 2022/23 Savings by Service Appendix 2 Budget Savings by Exception 2022/23 Elaine Kemp Head of Financial Solutions
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☐ No ☒ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact?
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Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed?
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Appendix 1 Service Approved Saving £m Agreed Solutions £m Revised Savings Target £m Projected Savings £m In-year Savings Gap £m Recurring Gap £m Adult Social Care 2.024 1.372 0.652 0.652 0.000 0.000 Chief Executive's 0.361 0.000 0.361 0.163 0.198 0.000 Enterprise & Communities 1.270 0.000 1.270 0.797 0.474 0.000 Education & Families 6.829 2.000 4.829 3.611 1.218 0.000 Total Service Savings 10.484 3.372 7.112 5.222 1.890 0.000 North Lanarkshire Council Revenue Budget 2022/23 Service Savings Monitoring 2022/23
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Service Division Saving Detail Savings Ref Approved Saving £m Projected Savings £m In Year Savings Gap £m Recurring Gap £m CEX Business Solutions DigitalNL CE05 0.198 0.000 0.198 0.000 E&C Assets & Procurement Asset Management Rationalisation/Office Dis-investment. EC10 (Part 1) 0.800 0.327 0.474 0.000 E&F Education Merger/Rezoning School Catchments EF18 0.675 0.175 0.500 0.000 E&F Education Residential/Family Placements/Throughcare EF08 0.600 0.000 0.600 0.000 E&F Education Librarians EF19 0.238 0.120 0.118 0.000 Total Savings 2.511 0.622 1.890 0.000 2022/23 Review of Budget Savings by Exception 2022/23 Appendix 2