Agenda item

A Cabinet report of the Head of Finance and Property Services setting out the revenue outturn position of the General Fund and Housing Revenue Account (HRA) for 2018/19. To Follow.

Considered a Cabinet report of the Head of Finance and Property Services setting out the revenue outturn position of the General Fund and Housing Revenue Account (HRA) for 2018/19 (item 6 on the agenda supplement filed with these minutes).

Assisting with consideration of the report: Cabinet Lead Member for Finance and Property Services, Strategic Director of Corporate Services, Head of Finance and Property Services.

Summary, key points of discussion:

(i)        The larger variances and the reasons behind those. 

(ii)       The need to be more accurate in setting the Medium Term Financial Strategy (MTFS) and yearly budgets, and how that could be assisted.

(iii)      The uncertainties faced in setting budgets and predicting future circumstances, and the generally challenging environment in that respect.

(iv)      The financially sound position of the Council.

(v)       The main risks and opportunities in relation to the Council’s income and expenditure, including the effect of other providers reducing services, the move towards a more commercial approach and the savings available from digitalisation.

(vi)      The Council having maintained services and Customer Service Excellence despite the savings it had achieved.

(vii)    The make-up of the Council’s funding and how that had changed/was likely to change, also that the Government announced local government funding at a late stage in the process and that the Fairer Funding review was unlikely to be undertaken in the current year.

(viii)   Explanation of how revenue contribution to capital had been budgeted for and funded, and how the capital programme was reviewed and amended throughout the year.

(ix)      Concern regarding the large overspend in the planning service, in particular given the changes that had been agreed to the service structure and its financing and advice that there would be income from major applications that had not then been received.  Reference to that income still being expected, just not realised in 2018/19.

(x)       The more detailed information on variances available in the 2018/19 Statement of Accounts, the importance of scrutiny better understanding that detail, the expertise needed to do so, the internal and external checks undertaken to ensure accuracy of the Council’s accounts, and the suggestion that the focus be on strategic direction, rather than detail.

(xi)      Whether the large HRA carry forward request (planned maintenance) could be spent in 2019/20, on top of the budget for that year.  That was an operational question for the Head of Landlord Services, although it was understood that the contractor was increasing capacity to enable that.

(xii)    Explanation of how the revenue budget was monitored over the year, including by the Council’s Audit Committee.    

It was stated that the Cabinet Lead Member for Housing could be contacted directly in respect of Councillor Boldrin’s concern that the response given at the Council meeting the previous evening regarding the impact of Universal Credit did not accord with the information provided in paragraphs 25 and 26 of Part B of the report.

RESOLVED

1.            that the Head of Finance and Property Services be asked to note that it would be useful for future outturn reports to also include the outturn figures for the previous two years;

2.            that the Committee seeks a reassurance that the new planning service structure and its financing are sufficient given the large overspend by the service in 2018/19;

3.            that, further to resolution 2. above, the Housing, Planning and Regeneration and Regulatory Services Scrutiny Committee be informed of this Committee’s concern as to whether the new planning service structure is enabling the service to progress in the right direction;

4.            that the Cabinet report setting out the revenue outturn position of the General Fund and Housing Revenue Account (HRA) for 2018/19 be noted, subject to the resolutions and discussion set out above.

Reasons

1.         To assist in making comparison and understanding trends.

2.         The Committee wished to be reassured that the overspend would not be repeated in future years.

3.         This was of concern to the Committee, but not a matter within its remit.

4.         The Committee’s remit included receiving regular financial monitoring reports and, having noted matters of concern, it was content to note the revenue outturn position.