Agenda item

Report of the Head of Corporate Resources

The Committee considered the report of the Head of Corporate Resources that provided information on the current forecast revenue outturn position for the Council for 2017/18 as at the end of July and that this forecast would be informed by the latest analysis of expenditure and income due to the Council, in addition to the progress in delivering approved savings; the current forecast on Council Tax and Business Rates collection for 2017/18; and the current position of the Capital Programme.

The report indicated that the Budget Council in March 2017 approved a 3 year budget package that would seek to address the funding shortfall of £64m that had been reported throughout 2016; that following a review of all financial assumptions and the proposals contained within the Framework for Change programme, savings of £24.922m were identified that would need to be delivered in 2017/18; that this position included a number of measures that were approved to phase the delivery of the public sector reform savings over the course of the 3 year period; and that the report presented an assessment of the forecast revenue outturn position for 2017/18 and the latest position on the achievement of the agreed Public Sector Reform savings for 2017/18 of £4.573m. Appendix A attached to the report provided details of all Public Sector Reform savings.

With regard to Council Tax the report indicated that Council Tax income was shared between the billing authority (Sefton Council) and the two major precepting authorities (the Fire and Rescue Authority, and the Police and Crime Commissioner) pro-rata to their demand on the Collection Fund; that the Council’s Budget included a Council Tax Requirement of £118.748m for 2017/18 (including Parish Precepts), which represents 85.8% of the net Council Tax income of £138.431m; that the forecast outturn at the end of July 2017 was a surplus of £0.294m (£0.186m reported in June); and that due to Collection Fund regulations, the Council Tax surplus would not be transferred to the General Fund in 2017/18 but would be carried forward to be distributed in future years.

With regard to Business Rates the report indicated that since 1 April 2013 the Council had retained a share of Business Rates income and that the Council’s share had increased from 49% in 2016/17 to 99% in 2017/18 as a result of its participation in the Liverpool City Region Business Rates 100% Retention Pilot Agreement; that the Government’s share of business rates had reduced from 50% in 2016/17 to 0% in 2017/18, however, they continued to be responsible for 50% of the deficit outstanding at the 31 March 2017; and that the Fire and Rescue Authority retained the other 1%. The forecast outturn at the end of July 2017 was a deficit of £0.523m on Business Rates income (£0.731m reported in June); and due to Collection Fund regulations, the Business Rates deficit would not be transferred to the General Fund in 2017/18 but would be carried forward to be recovered in future years.

With regard to the Capital Programme the report indicated that the approved capital budget for 2017/18 was £26.087m; that this had increased by £0.881m from the previous month; that £0.494m was due to the additional slippage from 2016/17 that was agreed by Strategic Capital Investment Group in June 2017 and £0.387m was due to some 2016/17 budgets that were phased in 2017/18 that had not been included in the programme due to a technical issue. As part of the monthly review project managers were now stating that £25.215m would be spent by year end; this would result in an under spend on the year of £0.872m on the whole programme with an overall delivery rate of 97%; and the key variations on the overall Programme were set out in paragraph 5.5 of the report.

Members asked questions/made comments on the following issues:-

·       The Council’s strategic investment in the Strand Shopping Centre and its effect on the Council’s borrowing commitment; and information was sought on when elected Members would be provided with full details of the costs to purchase the Centre

·       The prudential borrowing commitment to fund additional car parking at Maghull Leisure Centre 

RESOLVED: That