Agenda item

Agenda item

Revenue Monitoring (General Fund and HRA) Period 9

A report of the Head of Finance and Property Services to assist the Committee in monitoring the General Fund and HRA revenue position (Period 9 2019/20).

Minutes:

Considered, a report of the Head of Finance and Property Services to assist the Committee in monitoring the General Fund and HRA revenue position (item 7 on the agenda filed with these minutes).

 

Assisting with consideration of the report: Cabinet Lead Member for Finance and Property Services, Head of Finance and Property Services, Head of Customer Experience.

 

Summary, key points of discussion:

 

(i)      Reference to major impact of Planning and Regeneration shortfall (£265k) and Supported Living Housing Benefit costs above subsidy allowance (£584k).  Also, £228k of £300k Nonspecific Savings full year target not found, would be offset by salary underspend, outlined in report.  £574k underspend on Housing Revenue Account, difficulties in getting contractor to carry out work.

 (ii)    Challenging position faced in respect of Supported Living Housing Benefit costs discussed.  Demand-led. Two large providers in Borough.  National issue.  Currently difficult to control.  Linked to Universal Credit, Council could claim back less of the cost, further explanation of which provided.  Representations being made to address issue.  Providers registering as Social Landlords would assist, progress made with Carpenters Arms in that respect.  Committee was very sympathetic to the Council’s position and recognised that all possible action was being taken.

(iii)    Several of the overspends set out in Appendix 1 to the report had been addressed in the 2020/21 budget, these were outlined.  Others had not been notified and, therefore, had not yet been addressed and would need looking at.

(iv)    Reference to Planning and Regeneration restructure agreed in April 2018, that had expanded costs by over £200k, forecasting additional fee income to offset those.  Had been challenged by scrutiny at the time.  Ongoing assurances had been given that there would be additional fee income, including during the current year.  That income not realised, position warranted challenge, reasons for outcome needed.

(v)     Brief discussion regarding cost of Building Control service, service being reviewed.

(vi)    Council was in uncertain and reducing funding environment, every effort being made to mitigate that, focus on income generation.  £7m in balances forecast by end of next year.  Close and continued monitoring being undertaken.  Reference to work being undertaken to obtain additional revenue within capital schemes.

(vii)   Focus of Committee at this meeting was the revenue position at end Period 9 2019/20.

(viii)  Reference to Nonspecific Savings targets in current and 2020/21 budget, also amount referenced in Corporate Delivery Plan 2020/21.  Concern that savings needed but had not identified those well so far.  Brief explanation of work being undertaken to identify moving forward.  Useful if monitoring reports could list identified savings.

(ix)    Concern that underspend on HRA was affecting Council’s tenants in that required work was not being done.  Area that may warrant inclusion on scrutiny work programme.  Brief explanation of work being undertaken to address matter, improvements had been seen.  Work was only signed off once Council was completely happy with it.

 

The Chair thanked the Cabinet Lead Member and officers for attending to assist with consideration of the report.

 

RESOLVED

 

1.      that the Head of Planning and Regeneration be asked to attend the next scheduled meeting of the Committee to discuss the issue raised in (iv) above, given the revenue impact of the matter and the Committee’s role in scrutinising the Council’s revenue position;

 

2.      that, further to the issue raised in (viii) above, a schedule of the Nonspecific Savings that have been identified against target be included in future revenue monitoring reports submitted to the Committee; 

 

3.      that the report setting out the General Fund and HRA revenue position at Period 9 2019/20 be noted.

 

Reasons

 

1.      The Committee wished to understand the reasons for the shortfall, that being contrary to previous assurances on the matter and the rationale of the Planning and Regeneration restructure agreed in April 2018.

 

2.      The Committee was concerned that this target had not been achieved in the current year and providing this information would enable it to effectively monitor progress.

 

3.      The Committee’s remit included receiving regular financial monitoring reports and, having noted the discussion at this meeting and made specific resolution where it so wished, it was content to note the revenue monitoring report.

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