Agenda item

Report of the Head of Corporate Resources

The Cabinet considered the report of the Head of Corporate Resources informing the Cabinet of: -

1.       The current forecast revenue outturn position for the Council for 2019/20;

2.       The current forecast on Council Tax and Business Rates collection for 2019/20; and,

3.       The monitoring position of the Council’s capital programme to the end of July 2019, the forecast expenditure to year end, variations against the approved budgets and an explanation of those variations for consideration by Members. Updates to spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects are also presented for approval.

Decision Made:      That

(1)      the current forecast revenue outturn position for 2019/20 and the current position relating to delivery of savings included in the 2019/20 revenue budget be noted;

(2)      the mitigating measures being used to ensure a balanced forecast outturn position be noted;

(3)      the updates to the spending profiles within the capital programme across financial years, as set out at paragraph 5.1.1 of the report, be noted;

(4)      the latest capital expenditure position as at 31 July 2019 to date of £3.3m, as set out at paragraph 5.2.2 of the report, with the latest full year forecast being £26.7m, as set out at paragraph 5.3.1, be noted;

(5)      explanations of variances to project budgets, as set out at paragraph 5.3.2 of the report, be noted;

(6)      the new scheme added to the Capital Programme under delegated authority for 2019/20, as set out at paragraph 5.9.1 of the report, be noted;

(7)      approval of the Town Centre Commission Fund grant for inclusion in the capital programme be granted, once final approval for the grant is received from Liverpool City Region Combined Authority, as set out at section 5.5 of the report; the Executive Director be granted delegated authority to sign the Grant Agreement; and the S151 Officer be granted delegated authority to authorise grant claim submissions; and

(8)      the fact that capital resources will be managed by the Head of Corporate Resources to ensure the capital programme remains fully funded and that capital funding arrangements secure the maximum financial benefit to the Council, be noted

(9)      the Council be recommended to approve for inclusion in the capital programme the Town Centre Commission Fund grant once final approval for the grant is received from Liverpool City Region Combined Authority, as set out at section 5.5 of the report;

Reasons for the Decision:

To ensure the Cabinet is informed of the forecast outturn position for the 2019/2020 Revenue Budget as at the end of July 2019, including delivery of agreed savings, and to provide an updated forecast of the outturn position with regard to the collection of Council Tax and Business Rates.

To keep Members informed of the progress of the Capital Programme against the profiled budget for 2019/20 and agreed allocations for future years.

To progress any changes that are required in order to maintain a relevant and accurate budget profile necessary for effective monitoring of the Capital Programme.

To approve any updates to funding resources so that they can be applied to capital schemes in the delivery of the Council’s overall capital strategy.

In March 2017 Council approved a three-year budget plan to March 2020. The final year of this plan was revised in February 2019 as part of the process of setting the 2019/20 budget. The Council is in the final year of the budget plan and remains confident its strategic approach to budget planning alongside good financial management and extensive community engagement means that the plan continues to develop on solid foundations; it remains flexible and will secure the future sustainability to 2020 and beyond. However, in-year demand for social care services is currently resulting in the costs for these services significantly exceeding the budget. If further budget pressures are identified between now and the end of the year additional remedial action will be required to bring the overall budget into balance.

Alternative Options Considered and Rejected:

None.