Agenda item

Report of Deputy Chief Executive (Resources and Transformation) attached.

Decision Made: (Unanimously)

That:

(1)       the contents of the report and appendices be noted;

(2)       the final out turn position of £0.770m underspend against the original revenue budget of £13.482m and the key variances be noted;

(3)       the final out turn position on the capital budget of £0.597m underspend against an annual budget of £2.774m be noted;

(4)       the financing of the capital programme for 2017/18 be noted and approval be given to the carry forward of £0.402m of capital re-phasing into 2018/19 as outlined in this report;

(5)       the end of year position on reserves as a result of the out turn position and the contributions to and withdrawals from these reserves be noted;

(6)       the Council be recommended to give approval to the underspend being utilised to support other key projects or initiatives; and

(7)       approval be given to the development of a wider investment strategy in light of the level of balances.

The Cabinet considered the report of the Interim Deputy Chief Executive (Resources and Transformation)which provided details of the 2017/18 Budget Outturn position in relation to both revenue and capital expenditure. The report had previously been considered by the Governance Committee on 29 May 2018 together with the Council’s core financial statements that were produced as part of the Council’s draft Statement of Accounts. These were available on the Council’s website in accordance with statutory requirements and to meet the earlier statutory deadline of 31 May 2018.

The Council’s end of year accounts had been finalised and showed an underspend of £0.770m against the original annual budget of £13.482, representing 5.7%.  The reserves at the end of the year reflected some decisions that were made as part of the budget setting process which had resulted in the creation of some new reserves and had consolidated some existing reserves. Members were asked to note the level of reserves with a view to utilising the in-year underspend of £0.770m differently.

During the debate, the Cabinet raised the following issues:

It was noted that income collection levels were good, performance continues to be strong with a slight increase in the Council Tax Collection Rate (0.07%). Although the interest on investment figures were down in comparison to 2016/17, this was in line with market factors and was still compared favourably with external benchmarks for investment returns.

The Business Rates Retention pooling arrangements that the authority had entered into with the wider Lancashire Councils continues to be beneficial with the Council by attaining an additional levy of £1.1m which was reflected in the annual budget.

In response to a member of the public it was explained that the year-in underspend was made up of a number of variances that included employees and premises costs.

Decision Made: (Unanimously)

That:

(1)       the contents of the report and appendices be noted;

(2)       the final out turn position of £0.770m underspend against the original revenue budget of £13.482m and the key variances be noted;

(3)       the final out turn position on the capital budget of £0.597m underspend against an annual budget of £2.774m be noted;

(4)       the financing of the capital programme for 2017/18 be noted and approval be given to the carry forward of £0.402m of capital re-phasing into 2018/19 as outlined in this report;

(5)       the end of year position on reserves as a result of the out turn position and the contributions to and withdrawals from these reserves be noted;

(6)       the Council be recommended to give approval to the underspend being utilised to support other key projects or initiatives; and

(7)       approval be given to the development of a wider investment strategy in light of the level of balances.

Reasons for Decision:

The report sets out the final position for the Council in relation to its 2017/18 revenue and capital budget. The report supports the statutory accounts that are also being presented to the Governance Committee in accordance with statutory requirements.  These accounts have to be signed by the Chief Finance Officer by 31 May 2018 which is one month earlier than has previously been required.

Alternative Options Considered and Rejected: 

None.