Decision - Targetted Budget Management (TBM) Provisional Outturn 2014/15

8.1         The Committee considered a report of the Interim Executive Director for Finance & Resources in relation to Targetted Budget Management (TBM) Provisional Outturn 2014/15. The report set out the provisional outturn position on the Council’s revenue and capital budgets for the financial year 2014/15. The final outturn position was subject to annual external audit review. The final positon would be shown in the Council’s financial statements which had to be signed by the Chief Finance Officer by 30 June 2015 and the audited set approved by the Audit & Standards Committee by 30 September 2015.

8.2         Councillor Mitchell welcomed the report and made particular note of the additional funds for new homes through sales in the ‘Right to Buy’ scheme; the release of money through the insurance fund and the favourable position of the Council Tax collection fund. In response to a question the Executive Director for Children’s Services explained that the dedicated schools grant was ring-fenced; the bulk of the underspend had related to nursery provision as the authority had been allocated funding for a 100% take up.

8.3         In response to a further query from Councillor Mitchell the Executive Director for Adults’ Services explained that a great deal of preparatory work had taken place; in terms of implementation there was the national eligibility criteria, and this needed to be carefully monitored for any impact on the Council’s own criteria. This year the Council still had to make a decision on whether it was going forward with the second phase of the Care Bill, and an assessment of 25% of the self-funders would begin in spring 2016.

8.4         Councillor Sykes made remarks in relation to the position of TBM Month 2 in the previous financial year; he cautioned that there should not be an assumption any overspend would rectify itself by the end of the financial year, and added that the increasingly challenging VFM position; the pressure on Adults’ Services and welfare reform would all have an increasing impact.

8.5         Councillor Wealls commented that it could be difficult for a department to stay in budget, but noted that in some areas, such as residential care placements, this could be unavoidable. He welcomed the work of the new Neighbourhood, Communities & Equalities Committee and hoped the proposed working model would soon become clearer. He reiterated the size of the finance challenge facing the authority.

8.6         Councillor G. Theobald commented that the final outturn position would have allowed for a Council Tax freeze as the budget had produced a surplus as in previous years. He went on to welcome the comments from Councillor Mitchel in relation to ‘Right to Buy’ and hoped the new administration would look to tackle the overspend in the City Clean budget. He also raised the issue of the allocation of community and voluntary grant funding and the overspend in trade union staff time. In response a query about the funds through ‘Right to Buy’ the Executive Director for Environment, Development & Housing explained that the New Homes for Neighbourhoods programme continued to deliver new schemes and look for ways to invest this money. It was also noted that there would be a report on the future of the City Clean service to the July meeting of the Committee.

8.7         Councillor Janio stated that further work needed to be undertaken to look at how to reduce the demand for services, and allow the Council to target spending more effectively. There should be policy review to look at achieving this in the medium and long-term, and he hoped the Fairness Commission could be part of delivering this.

8.8         Councillor Daniel discussed the new Neighbourhood, Communities & Equalities Committee in her role as Chair and stated that it would be fundamental to the new administration’s approach to bridging the funding gap at the Council. There would be a community focus to ensure fairness and that the provision of services met the requirement. The city was already very fortunate as it had a strong community and voluntary sector; she also recognised that a prevention approach was vital and there would work this year to focus on rough sleepers.

8.9         Councillor G. Theobald commended the approach outlined by Councillor Daniel, and he went onto ask how the surplus in Leaseholder charges were managed; Officers agreed to provide a written response to the Committee.

8.10       The Chair then put the recommendations to the vote:

8.11       RESOLVED;

1)        That the Committee note the total provisional outturn position for the General Fund, which is an underspend of £0.003m. This consists of an underspend of £2.362m on council controlled budgets, an overspend of £0.259m on the council’s share of the NHS managed Section 75 services and net one-off contributions to provisions of £2.100m.

2)        That the Committee note the provisional outturn for the Housing Revenue Account (HRA), which is an underspend of £0.243m.

3)        That the Committee note the provisional outturn position for the Dedicated Schools Grant which is an underspend of £1.453m.

4)        That the Committee approve carry forward requests totalling £4.211m as detailed in Appendix 2.

5)        That the Committee approve the creation of the earmarked reserves as set out in paragraph 6.6.

6)        That the Committee note the provisional outturn position on the capital programme.

7)        That the Committee approve the following changes to the capital programme.

i)          The variations and reprofiles in Appendix 4 and the new schemes as set out in Appendix 5.