Agenda item

To provide an overview of the Council’s financial position against the budget as at the end of July 2018 and to present an updated forecast on an on-going basis as part of developing the budget for 2019/20 and beyond.

The Committee had before it a report of the Deputy Chief Executive (Corporate Services), which presented it with an overview of the Council’s actual financial position against the budget as at the end of July 2018 and which also presented an updated forecast on an on-going basis as part of developing the budget for 2019/20 and beyond.

The Committee was made aware that, at its meeting held on 14 September 2018, Cabinet had considered the same report and had resolved:

“(1)    That, in respect of the financial performance against the budget at the end of July 2018, -

(a)     the position be noted;

(b)     the proposed in-year adjustments to the budget as set out in Appendix H be agreed;

(c)     future amendments to in-year employee budgets to reflect organisational changes be  delegated to the Chief Finance Officer on the basis that they do not increase the Council’s overall net budget; and

(d)     the decision to continue to be a member of the Essex Business Rates Pool and associated bid for pilot status in 2019/20 be delegated to the Finance and Corporate Resources Portfolio Holder if advantageous to the Council.

(2)     That, in respect of the Updated Long Term Forecast, -

(a)         the updated forecast be agreed; and

(b)         the Resources and Service Overview and Scrutiny Committee be consulted on the updated position.”

The Cabinet report referred to above was attached as Appendix A to the report A.1 for the Committee’s consideration.

Members raised questions and concerns which were responded to by the Head of Finance, Revenues and Benefits Services.

Having considered and discussed the report, Councillor Stephenson moved and Councillor Scott seconded and it was:-

RESOLVED (a) the Committee notes the report and welcomes the revised approach to reporting key financial information and looks forward to seeing this evolve over the coming months; and

(b)   that the COMMENTS AND RECOMMENDS TO CABINET that:-

(a)         (1) the Committee proposes that in respect of the in-year position for 2018/19, the Committee notes the position regarding planning income which was expected at some point given the progress of the local plan.  However, it is suggested that if this trend in planning income continues, Officers explore ways to manage the cash flow implications across financial years to alleviate any adverse implications on the budget in any one year.

(b)         (2) The Committee will remain alert to the rental income situation within the HRA and hope to see the position stabilise over the coming year.  Although not necessarily for inclusion in future reports, it would be helpful for Members to receive more detailed information concerning void periods on a regular basis whilst the current adverse position continues.

(d)     (3) In respect of the money owed by one public sector debtor, it would be helpful to the Council’s cashflow position if the relevant service took whatever steps necessary to ensure that money is recovered as soon as possible during the year.

(e)     (4) In respect of the Updated Forecast, the Committee notes the updated forecast but in respect of the cost pressure allowance figure of £150k, which is recognised as one of the highest risks to the forecast, the Committee waits to see the level of cost pressures submitted by Services for 2019/20.

(f)      (5) The Committee hopes that the Council and its Essex neighbours are successful in forming a business rate pilot/pool in 2019/20 given the level of additional income that this is likely to generate in the area.

(g)     (6) When Cabinet see the recommendations from this Committee, Cabinet’s recommendations and comments are to go forward onto this Committee’s next agenda.