Agenda item

To enable the Committee to undertake scrutiny of the Council’s financial position against the budget as at the end of September 2019 and the updated forecast on an on-going basis as part of developing the budget for 2020/21and beyond.

The Committee had before it a report of the Deputy Chief executive (A.2) which provided it with an overview of the Council’s financial position against the budget as at the end of September 2019 and which also presented it with an updated forecast on an on-going basis as part of developing the budget for 2020/2021 and beyond.

The report invited Members to consider the in-year financial position as at the end of September 2019 and determine whether it had any comments or recommendations it wished to make or put forward to the relevant Portfolio Holder or Cabinet and also to consider the updated long term financial forecast update and determine whether it had any comments or recommendations it wished to make to Cabinet as part of the financial strategy consultation process.

The Committee was made aware that, on 8 November 2019 Cabinet had considered a Financial Performance Report and Appendices which were attached as Appendices A and B to the report to this Committee. It was reported that Cabinet had resolved:

(a)         in respect of the financial performance against the budget at the end of September 2019:

(1)         the current position be noted;

(2)         the proposed in-year adjustments to the budget, as set out in Appendix H to item A.7 of the Report of the Corporate Finance and Governance Portfolio Holder, be agreed;

(3)         in respect of the Council’s Treasury Management Practices, the aggregate amount of money that can be placed overnight with the Council’s bankers be increased temporarily from £1.000million to £1.500million for each day the Council’s offices are closed over the Christmas break; and

(4)         the Council continues to be a member of the Essex Business Rates Pool in 2020/21 if it remains financially advantageous to do so.

(b)         in respect of the Updated Long Term Forecast, the updated forecast be agreed and the Resources and Services Overview and Scrutiny Committee be consulted on the latest position.

In addition to the above and as requested by the Committee at its last meeting, the Council’s current reserves position was attached as Appendix C to the report now before the Committee.

The Council’s Head of Finance, Revenues and Benefit gave a response to the following questions asked by Members:-

-        Essex Business Rates Pool: what does TDC keep?

-        Impact of Universal Credit on rent arrears.

-        Impact of 1% increase in BWLB rates on TDC

-        Potential level of borrowing available in the financial markets following General Election

-        Drop in expenditure regarding Waste Transfer Station

-        Expiry of commuted sums

-        DFG Co-ordinator post: has it been filled?

-        Likelihood of increase in recycling credit income

-        Litter from Waste Transfer vehicles on A120 – use savings to clear up.

-        Insurance premiums increased expenditure

-        NHB 2019/20 – is it unallocated?

-        New Beach Huts – no activity?

-        Jaywick Sands – New Build starter homes – plans to spend receipts.

-        Use of Residents Free Parking Revenue: when?

-        Election Revenue: still contribute to it annually?

-        Empty Homes Funding: what is the review about?

-        Marine Parade West, Clacton-on-Sea: movement of the cliffs.

After some deliberation it was RESOLVED that the contents of the report be noted and that:-

(a)    the Chief Executive be requested to arrange, as soon as practicable, an All Member Briefing at which Members can be informed of the financial implications for this Council of the Government’s intention to move, in 2021/22, to a 75% Business Rates Retention Model for local authorities together with other recent big changes to the Council’s long-term financial forecast.

(b)   this Committee recommends to Cabinet that Officers be instructed to conduct, by the end of the current financial year, a viability review of all long outstanding projects for which monies are currently ring-fenced.