Money Matters 2018/19 Position - Quarter 1
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
This report provides the first update to cabinet on the county council's 2018/19 financial position as at the end of June 2018. It includes an update on the current year's financial position for both revenue and capital and an updated Medium Term Financial Strategy (MTFS).
Like all councils, Lancashire County Council is facing significant financial pressures, and officers continue to work to ensure the council can achieve a financially sustainable position over the strategy period.
· The 2018/19 revenue forecast outturn is £767.321m, representing a projected overspend of £2.680m (c0.35%) of the agreed budget.
· The MTFS has been updated and revised downward and now indicates a financial deficit of £135.300m in 2022/23.
· The council is forecast to hold a General Reserve against unforeseen issues of £23.437m representing c3% of net budget.
· The council is forecast to hold £125.009m of uncommitted transitional reserve (not including the forecast overspend in the current financial year), which is sufficient to meet the deficit in 2019/20 and contribute to the 2020/21 deficit, however in order to set a legal budget in future years further savings will need to be made.
· The in-year re-profiled capital delivery programme is £114.817m with a forecast spend of £111.382m representing a delivery variance of £3.435m or 3% of the programme.
Cabinet approved the recommendations as set out in the report.
Date of decision: 13/09/2018
Effective from: 19/09/2018