Issue - meetings

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive (Place), which set out the forecast outturn position for revenue and capital expenditure and the Council’s treasury management activity as at the end of December 2017.

The Cabinet noted that the report was also to be considered by the Audit and Procurement Committee at their meeting scheduled for 19^th February 2018.

The headline revenue forecast for 2017/18 was an overspend of £1.8m.  This had decreased since the Quarter 2 position, when it stood at £3.1m.  At the same point in 2016/17, there was a projected overspend of £4.8m.  Notwithstanding the relative improvement since Quarter 2, and the equivalent position last year, the reasons for the overspend represented some concerning trends for the Council.  At a time of continued tightening of local authority resources, the current position still represented one that demanded a strong focus on addressing the underlying issues.  However, it was still anticipated that tight budgetary control and utilisation of any one-off areas of flexibility would reduce the projected overspend and achieve a near balanced position by year-end.

The current position continued to reflect areas of budgetary overspend reported previously, including services for looked after children and the costs of homelessness.  In addition, a shortfall existed in delivering savings targets set in previous budgets.  Where relevant, the likely anticipated cost of these pressures would be incorporated into the forthcoming 2018/19 budget report.

The report indicated that it was proposed to allocate a 2017/18 windfall Coventry and Solihull Waste Disposal Company dividend of £1.8m to Council reserves to part meet the Council’s commitment to fund UK City of Culture 2021 costs.

The Cabinet were advised that the Council’s Capital spending was projected to be £121.0m for the year, a net increase of £1.1m on the position reported at Quarter 2.  Appendix 3 of the report submitted provided an analysis by directorate of the movement since Quarter 2.

The report also set out the current position in relation to treasury management activity in 2017/18, including interest rates; long term (capital) borrowing; short term (temporary) borrowing; external investments and the prudential indicators and prudential code.

RESOLVED that the Cabinet:-

1.  Note the forecast revenue overspend at Quarter 3.

2.  Approve the revised capital estimated outturn position for the year of £121.0m incorporating £10.7m net increase in spending relating to approved / technical changes as set out in Appendix 2 of the report; £10.0m of expenditure rescheduled into 2018/19 as detailed in Appendix 4; and an overspend of £0.4m as set out in Appendix 5.

3.  Recommend that Council approve the use of a windfall dividend of £1.8m from the Coventry and Solihull Waste Disposal Company as detailed in Section 5.1 of the report, to fund commitments including those set out in the City of Culture 2012 report to Council on 5^th December 2017.