Issue - meetings

The Cabinet Member for Finance introduced the report on the Council’s capital and revenue position for the 2014/15 financial year, as at 31 January 2015.

The General Fund showed a projected end of year spend of £166.6m against the total approved budget of £165.3m, an improvement of £300,000 on the previous month’s position.  The Cabinet Member advised that he remained confident that a balanced budget would be achieved by the year end but added that the measures that had helped to turn the position around, such as the freeze on all non-essential expenditure, should not be seen as long-term solutions.  Following on from that point, the Leader advised that he would like senior officers to give presentations to Cabinet Members over the coming months on the key budget issues and pressures relating to their services.

The Housing Revenue Account (HRA) was showing a predicted breakeven position while capital budgets continued to show some significant underspends in several areas, including the Housing New Builds and Decent Homes programmes.

Officers clarified issues regarding VAT refunds and, in respect of the HRA, the projected revenue contribution to capital of £35.7m.  The Corporate Director of Children’s Services also responded to issues relating to the in-house fostering service, pointing out that it had the highest placement level across all London authorities, and the overspend within the department.  In respect of the latter, the Corporate Director undertook to provide Cabinet Members with the report presented to the Public Accounts and Audit Select Committee earlier in the year on the steps being taken to mitigate the overspend and achieve a balanced budget going forward.

Cabinet resolved to:

(i)  Note the projected outturn position for 2014/15 of the Council’s General Fund revenue budget at 31 January 2015, as detailed in paragraphs 2.1, 2.4 to 2.10 and Appendix A of the report;

(ii)  Note the progress against the agreed 2014/15 savings at 31 January 2015, as detailed in paragraph 2.11 and Appendix B of the report;

(iii)  Note progress against the agreed 2014/15 HRA savings as detailed in paragraph 2.12 and Appendix B of the report;

(iv)  Note the overall position for the HRA at 31 January 2015, as detailed in paragraph 2.12 and Appendix C of the report;

(v)  Note the projected outturn position for 2014/15 of the Council’s capital budget at 31 January 2015, as detailed in paragraph 2.13 and Appendix D of the report; and

(vi)  Approve the inclusion in the 2015/16 Capital Programme of the additional schemes totalling £2m as detailed in paragraph 2.14.2 of the report.