Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance, Councillor Rowena Hay, introduced the report. She explained that in December 2015 a possible under-spend of £307, 900 was forecast. This was then transferred to the budget support reserve following Council in February 2016.

The Cabinet Member Finance highlighted that changes to government funding arrangements, together with the current economic climate (particularly in the light of Brexit), presented an ongoing concern for the budget. It was important that the council continued to focus on economic development at the same time as ensuring that it used underspends to support economic growth, the budget strategy reserve and general balances, bearing in mind the Medium Term Financial Strategy. She explained that business rates income had seen a significant short term dip with the Beechwood shopping centre closure and the Brewery redevelopment but despite this, the business rates pool had generated a surplus of £140, 000 in 2015/16 which had been transferred to the business rates equalisation reserve. She reported that a government consultation on the retention of business rates was underway with a deadline for responses by September. This would help shape future reforms and a further technical consultation was expected in the autumn. Parliamentary legislation for the framework was due in 2017 with a pilot scheme being introduced in April next year and full implementation by the end of this parliament.

In terms of the government offer for a fixed 4 year funding settlement, the Cabinet Member Finance believed this should be considered alongside the current business rates consultation. In any case the council was not in a position to submit a response to government with regard to the funding settlement by the October deadline. Cabinet was working with officers to address the MTFS in order to show a balanced budget over the period of the MTFS which must happen before any submission.

The Cabinet Member Finance reported that the Council had contributed £440,000 to the Joint Core Strategy over the last four years. It was uncertain how much more funding for this process was required but discussions were ongoing with the Inspectorate clarifying their estimated costs to completion. A reserve of £68,779 was available for this purpose and any request for additional funding would come forward in the report to be submitted at the October meeting of Council. This was a frustrating position but outside the council’s control.

The Cabinet Member Finance announced an underspend of £239,020 in addition to the £307,900 already incorporated into the revised budget. She paid tribute to the officers who were constantly working to find savings, reduce costs and generate income wherever possible. It was proposed that this saving also be transferred to the budget support reserve.

In section 3 of the report, reference had been made to the 2017 Tour of Britain cycle race and the Cabinet Member informed members that discussions were ongoing with regard to the possibility of Cheltenham hosting the penultimate day. Whilst these were at an early stage she emphasised that this would provide a boost to  ...  view the full minutes text for item 8

Report of the Cabinet Member Finance

RESOLVED THAT

Council be recommended to :

1.    Receive the financial outturn performance position for the General Fund, summarised at Appendix 2, and note that services have been delivered within the revised budget for 2015/16 resulting in a saving (after carry forward requests) of £239,020.

2.    Approve £40,000 of carry forward requests (requiring member approval) at Appendix 5.

3.    Approve the use of the budget saving of £239,020 as detailed in Section 3.

4.    Note the annual treasury management report at Appendix 7 and approve the actual 2015/16 prudential and treasury indicators.

5.    Note the capital programme outturn position as detailed in Appendix 8 and approve the carry forward of unspent budgets into 2015/16 (section 7).

6.    Note the position in respect of Section 106 agreements and partnership funding agreements at Appendix 9 (section 9).

7.    Note the outturn position in respect of collection rates for council tax and non-domestic rates for 2015/16 in Appendix 10 (section 10).

8.    Note the outturn position in respect of collection rates for sundry debts for 2015/16 in Appendix 11 (section 11).

9.    Receive the financial outturn performance position for the Housing Revenue Account for 2015/16 in Appendices 12 to 13 and approve the carry forward of unspent budgets into 2016/17 (section 12).

10.  Note the budget monitoring position to the end of June 2016 (section 13) and approve the budget virement of £60,000.

The Cabinet Member Finance introduced the report. She said that it had been another challenging year. In December 2015 a possible under-spend of £307 900 was forecasted. In February 2016 Cabinet made recommendations to Council that this be transferred to the Budget Support Reserve which was approved and therefore formed part of the revised budget for 15/16. She went on further to explain that government funding arrangements and changes, together with the economic climate, presented ongoing concern for this councils budgets, particularly in light of Brexit and the uncertainty surrounding the next steps. It was important that this council looked to grow its economy at the same time as ensuring that it used underspends to support economic growth, the budget strategy reserve and general balances, bearing in mind the Medium Term Financial Strategy.

The Cabinet Member Finance was delighted to inform Members that an underspend of £239,020 had been achieved. She paid tribute to the hard work and sound financial management by officers and reported that this saving had been transferred into the budget strategy support reserve. She welcomed the increased income from car parking, the settlement from the council’s deposit in the Icelandic Bank of Glitnir and the fact that the business rate pool had come out of deficit. She reported that the Housing Revenue outturn statement showed a net positive variance and that the capital programme had delivered the boiler scheme ahead of schedule. She highlighted the ongoing costs of the Joint Core Strategy which were within the control of the Government’s Inspector.

In response to a question as to whether the council had recovered more than anticipated in terms of its investment in Glitnir bank, the S151 Officer reported that officers had negotiated a deal at a favourable exchange rate of €1.19 but was not aware how we compared to other authorities.

The Cabinet Member Housing welcomed the income received on the HRA account from the Feed in Tariff from PV Installations.

RESOLVED THAT

Council be recommended to :

1.    Receive the financial outturn performance position for the General Fund, summarised at Appendix 2, and note that services have been delivered within the revised budget for 2015/16 resulting in a saving (after carry forward requests) of £239,020.

2.    Approve £40,000 of carry forward requests (requiring member approval) at Appendix 5.

3.    Approve the use of the budget saving of £239,020 as detailed in Section 3.

4.    Note the annual treasury management report at Appendix 7 and approve the actual 2015/16 prudential and treasury indicators.

5.    Note the capital programme outturn position as detailed in Appendix 8 and approve the carry forward of unspent budgets into 2015/16 (section 7).

6.    Note the position in respect of Section 106 agreements and partnership funding agreements at Appendix 9 (section 9).

7.    Note the outturn position in respect of collection rates for council tax and non-domestic rates for 2015/16 in Appendix 10 (section 10).

8.    Note the outturn position in respect of collection rates for sundry debts for 2015/16 in Appendix  ...  view the full minutes text for item 10