Decision details

The Cabinet gave consideration to a report of the Director of Finance which provided Members with an update on the Council’s 2018/19 forecast revenue budget position and the financial position of the capital programme as at 31 December 2018, (quarter 3) together with the revised capital programme 2018/23.

Revenue Position

The current forecast outturn position for 2018/19 was a projected favourable variance of £0.255m after allowing for approved and pending transfers to and from reserves.

The most significant area of concern was the People and Place Portfolio, and an update on the major issues driving the projections were detailed at Annex 1 of the report. 

The overall corporate position was being managed by offsetting favourable variances, most notably from Capital, Treasury and Corporate Accounting budgets, in part caused by the anticipated cost of borrowing and capital finance being lower than budgeted and the availability of additional Treasury Management income and unringfenced grants not allocated to service budgets.

Housing Revenue Account and Dedicated Schools Grant

Information on the quarter 3 position of the Dedicated Schools Grant (DSG) and Housing Revenue Account (HRA) and collection fund was also outlined in the report.

There were no significant issues of concern in relation to the HRA and Collection Fund however the DSG continued to be an area facing a financial challenge with an increase in the projected year-end deficit. Action was being taken to bring the DSG towards a balanced budget.

Capital Position

The most up to date capital spending proposals for 2018/23 were provided to Members. The revised Capital programme budget was £48.267m at the close of month 9, a net decrease of £41.706m from the original budget of £89.658 and a reduction of £0.571m from the £49.391m reported at month 8.

Actual expenditure to 31^st December 2018 was £36.507m (75.64% of forecast outturn).

It was reported that at this stage in the financial year, the forecast position would continue to change with additional re-profiling into future years.

Options/Alternatives considered

Option 1 – To approve the forecast revenue and capital positions presented in the report including proposed changes.

Option 2 – To approve some of the forecasts and changes detailed within the report.

Option 3 – Not to approve any of the forecasts and changes detailed within the report.

RESOLVED – That:

1. The forecast revenue outturn for 2018/19 at Quarter 3 being a £0.255m under spend be approved.
2. The forecast positions for the Housing Revenue Account and Collection Fund and Dedicated Schools Grant as detailed within the report be approved.
3. The use of reserves as detailed in Appendix 1 to Annexe 1 of the report be approved.
4. The revised capital programme for 2018/19 to the extended period of 2022/23 as at 31^st December 2018, Quarter 3 be approved.