Issue - meetings

[Report of the  Chief Operating Officer. To be introduced by the Cabinet Member for Finance and Health.] The report sets out the revenue and capital outturn for 2015/16 together with proposed transfers to reserves and revenue and capital carry forward requests.

The Cabinet Member for Finance and Health introduced the report which set out the final financial outturn position for 2015/16, the impact on the Council’s General Fund and earmarked Reserves, and the movement from the provisional outturn provided to Cabinet on the 15^th of March 2016.

Cabinet noted that the current overspend stood at £6.8m which was a £4.3m improvement from the position reported in the provisional outturn report in March.  This would mean less of a draw down from reserves, than expected, but there was still work to do on reducing expenditure. This would include focus on the speed of the transformation in demand led areas of Adult Services, Children Services and Temporary accommodation to avoid significant overspends in 2016/17.

The Cabinet Member was pleased to report a £4m surplus in Council Tax collection as a result of the growth in the Council Tax base.  However the £3m deficit in business rates collection fund highlighted the types of risks to be held by the Council with the devolution of business rates and the need to have a robust process in place for business rate appeals.

In response to a question from Cllr Engert on the Council’s commitment to building new homes, the Cabinet Member for Finance and Health highlighted the challenges of the Government’s housing policy and the government interventions which were stretching the capacity of Councils to meet their housing commitments. The Council would try hard to achieve its commitments to building new homes but the national context also needed to be recognised.

The Cabinet Member referenced the Council’s work in procuring a development vehicle partner to support building homes in the borough with a decision on an appointment likely in the spring of 2017.

RESOLVED

1.    To note the report and the Council’s 2015/16 Final Outturn position in respect of net revenue and capital expenditure;

2.    To note the principle that the carry forward of resources will only be permitted once agreed by the Chief Finance Officer and where the expenditure is backed by an approved reserve or external funding source; and

3.    To note the risks and issues identified in this report in the context of the Council’s on-going budget management responsibilities.

4.    To agree the revenue carry forwards, at appendix 1, and capital carry forwards at appendix 2.

Reasons for decision

A strong financial management framework, including oversight by Members and senior management, is an essential part of delivering the Council’s priorities.

Alternative options considered

This is the 2015/16 Final Outturn report, as such there are no alternative options.