Agenda item

Revenue and Capital Budget Update 2019/20

Report of the Head of Corporate Resources

Minutes:

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 2019/20; the current forecast on Council Tax and Business Rates collection for 2019/20; and the monitoring position of the Council’s capital programme to the end of October 2019, the forecast expenditure to year end, variations against the approved budgets and an explanation of those variations for consideration by Members. The report also updated on spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects.

 

In respect of the forecast outturn position as at the end of November 2019 the report indicated that significant pressures had been identified in several service areas, particularly Children’s Social Care, Locality Services and Home to School Transport; that the latest forecast of service expenditure indicated an overspend of £3.587m; and a table was included within the report highlighting the variations. The report also set out the measures to close the residual gap in 2019/20 to ensure there was no year-end deficit.

 

In respect of the current forecast on Council Tax it was anticipated that there would be a forecast surplus of £1.160m of which Sefton’s share was £0.996m; whilst in respect of Business Rates collection for 2019/20 a forecast surplus of £1.768m was anticipated with Sefton’s share of this being £1.750m.

 

In respect of the Capital Programme the report detailed the Capital Budget and profile of expenditure for the three years 2019/20 to 2021/22 and provided information on new schemes added to the Programme; and detailed the current position of expenditure against the budget profile to the end of November  2019 and indicated that it should be noted that budgets were profiled over the financial year which skewed expenditure to the final three quarters of the financial year; and a full list of the capital programme by capital scheme was attached to the report as Appendix A.  

 

The report concluded that the Head of Corporate Resources would continue to manage the financing of the programme to ensure the final capital funding arrangements secured the maximum financial benefit to the Council.

 

RESOLVED: 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, excluding a forecast deficit on Housing Benefits which will be considered at the end of the financial year if it materialises, be noted;

 

(3)

It be noted that a comprehensive review of all forecast outturn estimates and potential remedial measures is required as part of the end of December monitoring in order to inform decisions that may be required to ensure a balanced forecast outturn position can be achieved or understand a potential call of General Fund Balances;

 

(4)

In respect of the capital Programme:

 

(a)

the updates to spending profiles across financial years be noted;

 

(b)

the new schemes added to the Capital Programme under delegated authority for 2019/20 be noted;

 

(c)

the latest capital expenditure position as at 30 November 2019 to date of £10.695m with the latest full year forecast being £24.734m be noted;

 

(d)

the explanations of variances to project budgets be noted; and

 

(e)

it be noted 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.

 

 

 

 

 

 

 

Supporting documents: