Agenda item

(CSP: MEC, MEC1)

Purpose: To inform Members of the provisional financial outturn of the Council for 2015/16.

Resolved that the provisional financial outturn of the Council for 2015-16 and the budget movements processed in year be noted.

This decision is not subject to call in as:

·      Report is to note only

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 6) concerning the provisional financial outturn for the Council in respect of the 2015-16 financial year, subject to the final result of the closedown and External Audit process.

Councillor Graham Jones introduced the report and explained that total capital expenditure in 2015-16 was £38.5m, with an under spend of £6.7m against the revised budget of £45.2m. The budget was revised during the course of the year to take account of funds brought forward from 2014-15, additional grant and section 106 funding allocated to schemes during the year and funds re-profiled into 2016-17, and these changes had been explained in the quarterly budget monitoring reports provided to the Executive. The Capital Strategy Group had recommended that £6.6m of the overall underspend should be carried forward to enable schemes already underway to be completed and/or to meet future capital commitments. 

The total revenue expenditure in 2015-16 was £125m, with a provisional year end overspend of £115k or 0.09% of net budget which would lead to a reduction in the General Fund. Councillor Jones felt this was a considerable achievement when considering the financial pressures felt during 2015-16 and Officers were thanked for their efforts in achieving this outturn. Investment had also been made into Children and Family Services during 2015-16 in response to the Ofsted Inspection. This investment was helping to achieve positive results.

Councillor Jones explained that at Quarter Three, the forecast Year End position for the Council was an overspend of £625k, but through a deliberate slowing of non-essential expenditure across services, the corporate position had been reduced to the Year End provisional overspend of £115k.

Councillor Jones then reported that increasing demand across social care budgets during 2015-16 had put the Council’s resources under considerable strain. This budget pressure included the burden of meeting the requirements of the Care Act. Councillor Jones explained that efforts continued to engage Central Government on the issue of appropriate funding to implement the requirements of the Care Act.

It was also noted that the Council had made significant investment into identified pressure points as part of the 2016-17 budget process. 

Councillor Hilary Cole agreed that the 2015/16 budget had been well managed in what were difficult financial times and staff should be congratulated. Social care staff had done particularly well when considering increasing levels of demand.

Councillor Alan Macro queried whether it was the expectation that budget overspends were likely to continue in Children and Family Services. Councillor Lynne Doherty responded by advising that this was not the expectation. She added that while social care services were demand led, the number of Looked After Children and children subject to a Child Protection Plan had reduced post the production of the Council’s Ofsted Improvement Plan.

Councillor Macro then referred to the underspend reported for the Environment Directorate and queried whether this was contributed to by the mild winter experienced. Councillor Jones agreed that a written response would be provided on this point from the Portfolio Holder for Transport and Emergency Planning.

Councillor Lee Dillon referred to the retention of local business rates and queried whether an increase in income could be achieved from this in future. Nick Carter explained that assumptions had been made on business rate growth and this was an area regularly reviewed. While, as stated in the report, this was a volatile area, historically West Berkshire had a trend of growth and it was hoped that this would continue. In response to this, Councillor Dillon referred to the point made in the report that growth in local business rate retention had stagnated and he therefore questioned the points made by the Chief Executive. Andy Walker agreed that this was a volatile area and there had been some one off pressures during 2015-16 which had impacted on growth, but it was hoped that a more stable position could be maintained moving forward.

RESOLVED that:

·         Members were fully aware of the provisional financial outturn of the Council.

·         The budget movements processed in year, detailed in Appendix D, be noted.

Reason for the decision: To inform Members of the provisional financial outturn of the Council for 2015-16.

Other options considered: None.