Issue - meetings

The Select Committee gave consideration to a report of the Director of Finance which provided them with an update on the Council’s 2018/19 forecast revenue budget position and the financial position of the capital programme as at 30 November 2018 (Month 8), together with the revised capital programme 2018/23.

In relation to the Revenue position, the Select Committee were informed that the current forecast outturn position for 2018/19 was a projected favourable variance of £0.145m after allowing for approved and pending transfers to and from reserves.

The most significant area of concern was the People and Place Portfolio, in the main due to the transfer of Children’s Social Care into this area. An update on the major issues driving the projections within this Portfolio was provided. Action was being taken and would continue for the remainder of the financial year to address variances and take mitigating action as detailed in the report.

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

Information on the Month 8 position of the Dedicated Schools Grant (DSG), 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 which was facing a financial challenge with an increase in the projected year-end deficit. Action was being taken with the aim of reducing the cumulative deficit and

bringing the DSG towards a balanced position.

With regard to the Capital position, the report outlined the most up to date capital spending position for 2018/23 for approved schemes. The 2018/19 capital programme budget had been revised to £48.952m at the close of Month 8, a net decrease of £40.706m from the original budget of £89.658 and a reduction of £0.571m from the £49.523m reported at Quarter 2. Actual expenditure to 30 November 2018 was £24.637m (50.33% of forecast outturn). The Select Committee were informed that it was probable that the forecast position would continue to change before the year end with

additional re-profiling into future years.

The Select Committee RESOLVED that:

1.     The forecast revenue outturn for 2018/19 at Month 8, being a £0.145m under spend, be noted.

2.     The forecast positions for the HRA, Collection Fund and the DSG be noted.

3.     The use of ear marked reserves as detailed in Appendix 1 to Annex 1 of the report be noted.

4.     The revised capital programme for 2018/19 to the extended period of 2022/23, as at Month 8, be noted.