Agenda item

The Cabinet Member for Finance and Central Services presented a report on the provisional revenue and capital outturn position for the 2014/15 financial year and a request by the Public Accounts and Audit Select Committee for funding to be allocated for an independent assessment of the financial evaluation that supported the decision taken by Cabinet under Minute 78 (16 December 2014) in respect of the “Rationalisation of Corporate Office Portfolio”. 

With regard to the latter issue, the Cabinet Member for Finance and Central Services commented that there was no reason to believe that the work undertaken by officers on that project was any less robust and thorough than on any other project that had been approved by the Council.  He did not, therefore, support the allocation of any monies from reserves to accommodate the Select Committee’s request.

In relation to the provisional outturn position, the General Fund position showed a projected year-end overspend of £0.07m against the net revenue budget of £165.3m, which when added to the programmed use of £1m of reserves during the year would result in the General Fund balance decreasing to £26.03m at the year end.  The Housing Revenue Account (HRA) showed a breakeven position for the year while the Capital Programme showed a projected outturn of £128.866m compared to the revised budget of £143.153m. 

The Cabinet Member commended the work undertaken to minimise the revenue overspend position but stressed that the position was not sustainable going forward, particularly bearing in mind the future pressures for the Council of the Government’s welfare reforms.  The Leader concurred that significant additional resources would need to be directed towards services for vulnerable adults and children and the Cabinet Member for Adult Social Care and Health also advised on an assessment that she had been involved in at work which exemplified the difficulties many people would face as a result of the Government’s reforms.

In noting the range of revenue and capital roll-forwards that were proposed in the report, Members reiterated the need for allocated capital expenditure to be fully utilised in-year and suggested that the Council’s contract management and programming should be reviewed to ensure the delivery of future projects.  Officers clarified Members’ enquiries in relation to several capital projects listed in the report and the Cabinet Member for Children’s Services and Social Care reiterated the need for a better understanding of the demography of the Borough in order for the Council to properly plan for the future.  On that point, the Chief Executive referred to the limited capacity currently within the Council to undertake such work but he added that his new management restructure proposals would help to address that area.

It was also noted that a report would be presented to the July meeting of the Cabinet on the impact of the Chancellor of the Exchequer’s Emergency Budget Statement to be announced earlier that month.

Cabinet resolved to:

(i)  Note the provisional outturn position for 2014/15 of the Council’s revenue budget, which showed a £70,000 overspend, as detailed in paragraphs 2.1 to 2.10 and Appendix A of the report;

(ii)  Note the provisional outturn against the 2014/15 savings targets, which showed a £510,000 shortfall against the target of £8.721m, as detailed in paragraph 2.11 and Appendix B of the report;

(iii)  Note the provisional outturn break-even position for the Housing Revenue Account as detailed in paragraph 2.7 and Appendix C of the report and the transfer of the commercial properties to the General Fund, as approved by the Council’s external auditors;

(iv)  Approve the requests to roll forward revenue budgets into 2015/16 totalling £6.22m and the resulting budget amendments, as detailed in Appendix D of the report;

(v)  Note the provisional outturn position for 2014/15 of the Council’s capital budget, which showed a spend of £128.9m against the revised budget of £143.1m, as detailed in paragraph 2.12 and Appendices E and F of the report;

(vi)  Approve the requests to roll forward slippage and re-profiled spend in capital projects to 2015/16, giving a revised capital budget of £130.12m for 2015/16, as detailed in Appendix E of the report; and

(vii)  Decline the request from the Public Accounts and Audit Select Committee for funding for an external review of officers’ financial evaluation which supported the recommendations of the “Rationalisation of Corporate Office Portfolio” report approved by Cabinet on 16 December 2014 (Minute 78).