Issue - meetings

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Deputy Chief Executive (Place) which set out forecast outturn position for revenue and capital expenditure and the Council’s treasury management activity as at the end of September 2019.

The headline revenue forecast for 2019/20 was a net balanced budget. At the same point in 2018/19 there was a projected overspend of £0.5m.   The headline capital position reported £4.8m of expenditure rescheduled into 2020/21.

The largest area of budget pressure and the biggest movement since Quarter 1 was services for housing and homelessness, which were projecting an overspend of £2.8m for the year.  There were other overspends in services relating to Looked after Children Placements and Special Education Needs (SEN) Transport with compensating below budget expenditure in corporate areas.

The Council’s capital spending was projected to be £218.7m for the year and included major scheme expenditure including investment in the A46 Link Road, Coventry Station Masterplan, Whitley South infrastructure and the National Battery Plant.  The position assumed the addition of £0.5m to the Capital Programme in 2019/20 for Waste Containers, for which approval was sought due to the need to fund this expenditure from Prudential Borrowing.  The borrowing was to be funded from the additional income generated from the containers.

With regard to the Net Asset Management Revenue Account, expenditure was anticipated to be £1.9m less than budget because of lower costs of capital financing, higher investment income and higher loan income.  Other corporate budgets reflected lower than budgeted pension costs linked to an early payment arrangement with the West Midlands Pension Fund (£2m), uncommitted resources related to one-off social care funding (£1m), Coventry and Warwickshire Business Rate Pool income in excess of budget (£1.1m), projected additional savings from the Friargate Project (£0.75m) and lower than budgeted levy costs (£0.6m). It was recommended that a contribution be made from this area into reserves for managing the costs of major.

The Cabinet noted that the report was also to be considered by the Audit and Procurement Committee at their meeting on 27^th January 2020.

RESOLVED that, the Cabinet:

1.  Approve the Council’s revenue monitoring position.

2.  Approve the revised capital estimated outturn position for the year of £218.7m incorporating; £5m net increase in spending relating to approved / technical changes, £4.8m net rescheduling of expenditure into 2020/21

3.  Approve a contribution to reserves of £0.7m earmarked to fund future costs of managing the Council’s major projects.

4.  Approve the addition of £0.5m to the capital programme in 2019/20 for Waste Containers to be funded by Prudential Borrowing.