Agenda item - Recommendations from the Cabinet

Agenda item

Recommendations from the Cabinet

To consider the recommendations from the meeting of the Cabinet held on 12th July 2017

 

·         Financial Outturn 2016/17

 

·         Planning Policy and Conservation Shared Services Business Case

(The background papers to this item are confidential)

 

(The background papers to the recommendations are contained at the back of the Council Agenda book)

Minutes:

Financial Outturn 2016/17 and Reserves

 

The recommendations from Cabinet in respect of the Financial Outturn 2016/17 and Reserves was proposed by Councillor B. T. Cooper and seconded by Councillor G. N. Denaro.

 

In proposing the recommendations Councillor Cooper referred to the revenue underspend of £671k which comprised both savings and additional income generated. It was proposed to return £238k to balances bringing these to £4.314m. Councillor Cooper also referred to the sum of £899k proposed to be transferred to create new reserves to be used to support the Council’s  priorities such as economic regeneration and the implementation of housing schemes across the District.

 

Councillor Cooper felt that officers were to be commended for delivering the surplus with no reduction of services. In the forthcoming years the situation may be different particularly given the future loss of government funding.  This included the potential reduction in the New Homes Bonus and the requirement to make payments to Central Government. 

 

Councillor Cooper stated that he was aware that concerns had been expressed by Members regarding budget forecasting. Whilst improvements in processes had been made there was still a need for a further review of these together with strategic purposes and potentially changes may be required. Senior officers were already considering how this could be addressed.

 

During the debate a number of issues were highlighted including:

 

·         Serious concern was expressed regarding the significant level of underspend of £1.137m and in particular the fact that this was not forecast at the end of Quarter 3;

 

·         Concerns that this was an indication that there was a potential lack of fiscal control and of sufficient information to enable Members to make properly informed decisions;

 

·         The reduction in the opportunity for Members to question figures prior to the final outturn position becoming available;

 

·         The impact on the Efficiency Plan which had been compiled to show how savings would be made;

 

·         The process by which the proposed specific reserves such as for economic regeneration had been determined and how these would be used;  

 

·         Decisions which had been made previously on issues such as increases in the level of Council Tax and Departmental restructures may not have been necessary given the levels of savings now revealed;

 

·         A similar position had occurred over a number of years and had not been sufficiently addressed, this had also been raised by the Council’s auditors;

 

Councillor Denaro agreed that the figures required close examination to understand the levels of savings and income generated and why this had not been accurately forecast. When budgets were being prepared for future years clearly the savings would need to be taken into account.

 

Councillor Denaro felt that it was encouraging that despite the very difficult financial position officers had been able to achieve the level of savings indicated. There would be reports coming to Cabinet and Council in the near future relating to proposals for use of reserves in respect of appropriate projects to support the Council’s priorities.

 

Some Members felt that the work undertaken by officers in achieving savings should be acknowledged. 

 

Whilst recognising the work undertaken by officers, Councillor Cooper stated that he agreed with many of the points raised in the debate. As Finance Portfolio Holder he would be working closely with officers in order to review and further improve the Council’s budget processes. 

 

RESOLVED:

(a)       that the outturn financial position on Revenue and Capital and the transfer to balances of £238k as detailed in the report be noted;

(b)       that the movements of £549k in existing reserves as set out in Appendix 3 to the report, which reflects the approval required for April 2016 – March 2017 be approved;

(c)        that the addition of new reserves of £899k as set out in Appendix 3 to the report, which reflects the approval required for April 2016 – March 2017 be approved.      

 

 

Planning Policy and Conservation Shared Service Business Case

 

 As it was likely that discussions on this item would involve the exclusion of the public from the meeting it was agreed that it be deferred to the end of the agenda.  

 

Supporting documents: