Agenda item

As detailed in the recommendations.

The Corporate Finance Manager introduced the report on Revenue Budget Monitoring 2016/17 (Month 4) which provided the latest revenue budget monitoring position for 2016/17 for the Council Fund and the Housing Revenue Account.

                        The report had been considered at Corporate Resources Overview and Scrutiny Committee the previous week where it resolved: “That the Committee wishes to impress upon the Cabinet the need to learn to be more realistic about the achievement of efficiency savings, some of which may not be wholly within the Council’s control”.  In response to that resolution, Members commented on the objections to some of the initial budget proposals by Overview and Scrutiny Committees which had resulted in changes to some schemes.  This impacted on the budget and was part of the democratic process.

                        The Corporate Finance Manager explained that the final year end position was:

            Council Fund

·         Net in year expenditure forecast to be £2.081M higher than budget

·         Projected contingency reserve balance of £2.107M

The underlying forecast overspend would be reduced to £1.641M with the successful negotiation of an additional Welsh Government (WG) transport grant of £0.440M.  Of the remaining £1.641M, £0.861M (52%) came from conscious decisions to change proposals for household recycling centres, community asset transfers, town centre and County Hall car parking charging, and workforce essential car user allowances.  This left a true unpredicted working deficit of £0.780M.  The recurring impacts of the forecast position for 2017/18 were explained in the report.

Housing Revenue Account

·         Net in year expenditure forecast to be £0.013M lower than budget

·         Projected closing balance as at 31 March 2016 of £1.111M

The report covered significant budget movements; programme of efficiencies; inflation; reserves and balances; and an overview of the Housing Revenue Account.

                        The Chief Executive explained that the Council set a challenging level of specified efficiencies to be achieved in-year as part of its approach to annual budget planning.  The first assessment of the efficiency profile for 2016/17 showed that 86% of the efficiencies pre-set in the annual budget would be achieved.  That figure rose to 93% following the conscious decisions to change proposals for household recycling centres, community asset transfers, town centre and County Hall car parking charging, and workforce essential car user allowances.  He commented on the difficulty in accurate predictions which included the democratic process. 

                        He added that following the liquidation of GHA Coaches, the Council was attempting to recover as much of the costs as possible.  Councillor Attridge praised staff for their work to ensure there was a continuation of service for both school children and public transport.

                        Councillor Bithell commented on the 86% of efficiencies being achieved and asked if the Wales Audit Office (WAO) provided details of the statistics from other Local Authorities.  The Chief Executive said a composite list of efficiencies achieved was not available but if one was produced it would be a helpful document.

RESOLVED:

(a)       That the report be noted; and

(b)       That an allocation of £0.861M from the contingency reserve be approved to meet the financial impact of the changed proposals for household recycling centres, community asset transfers, town centre and County Hall car parking charges, and workforce essential car user allowances.