Agenda item

The Cabinet Member for Finance and Central Services introduced the report on the Council’s capital and revenue position for the 2015/16 financial year, as at 31 October 2015.

The General Fund showed a projected end of year spend of £157.29m against the approved budget of £151.44m, which represented a slightly improved position to that at 30 September, although the Cabinet Member pointed out that the current overspend of £5.85m was likely to remain around that level for the remainder of the financial year.  With that in mind and to ensure that the Council’s General Fund reserves remained above the preferred minimum threshold of £15m, it was proposed to bring forward the implementation of 2016/17 savings proposals wherever possible.

The Housing Revenue Account (HRA) continued to show a predicted breakeven position, although the Cabinet Member referred to a slight underperformance on rent collection levels which was being addressed.  It was further noted that the in-year General Fund savings for 2015/16 were largely on target, with a forecast saving of £21.99m against the overall target of £23.52m, while the projected spend within the Capital Programme was in line with the reprofiled budget of £131.5m.

The Cabinet Member elaborated on the request for an additional £0.6m allocation from reserves to support the development of final business cases for several projects being progressed under the Council’s Ambition 2020 programme.  Clarification was also provided in respect of a number of other matters, which included:

·  The elements that made up the “other available reserves” within the General Fund;

·  The continued availability of HRA decanted properties for use as temporary accommodation for at least the next few years, as a consequence of the Council’s borough-wide estate renewal programme;

·  The need to factor known inflationary increases for aspects such as tenants’ water charges into the HRA budget setting process in the future; and

·  The need to realign the allocations within the Capital Programme that related to the Decent Homes North and South projects to properly reflect the accelerated funding and spend levels.

Cabinet resolved to:

(i)  Note the projected outturn position for 2015/16 of the Council’s General Fund revenue budget at 31 October 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 2015/16 savings at 31 October 2015, as detailed in paragraph 2.11 and Appendix B of the report;

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

(iv)  Note the projected outturn position for 2015/16 of the Council’s capital budget as at 31 October 2015, as detailed in paragraph 2.13 and Appendix D of the report;

(v)  Agree that all Chief Officers be instructed to implement any agreed 2016/17 savings during the current financial year to assist in reducing the Council’s overspend, as detailed in paragraph 2.2.3 of the report; and

(vi)  Agree to the use of £0.6m of Council reserves to fund the development of business cases for the Ambition 2020 programme, as detailed in paragraph 2.9.7 of the report.