Issue - meetings

As detailed in the recommendations.

The Head of Finance presented the report to advise Members of the significant financial risk associated with the trigger of the Scheme of Arrangement by Municipal Mutual Insurance (MMI).

The Head of Finance detailed the historic background to MMI which was not the result of any new insurance risk and where specific financial provision was required for any potential liability.  The Council was required to make an estimated financial provision in this year’s accounts and it was therefore proposed that a mid-range figure of £0.770m be set aside for this purpose.  There was an opportunity to utilise the current year’s underspend to meet this estimated risk.

The Head of Legal & Democratic Services stated that he was not aware of the timescale in which the potential levy would be known but suggested that discussions with the other unitary Authorities on the sharing of costs would need to take place before any payment was made.  The Cabinet Member for Public Protection, Waste & Recycling asked if the response could be shared with Cabinet Members.

The Chief Executive said that an updated estimate of the levy was now in the range of £0.577m and £0.962m.  The figure had been revised since the earlier publication of the previous report on Revenue Budget Monitoring (Month 8) for the recent meeting of the Corporate Resources Overview and Scrutiny Committee. 

RESOLVED:

a)         That the significant financial risks associated with the trigger of the Scheme of Arrangement by MMI be noted; and

b)         That an allocation of £0.770m from the contingency reserve to provide for the estimated future costs arising from the levy be approved.