Agenda item

The Committee received a report on the position of the Council Finances, as at 31 December 2015, focussing in particular on Revenue, Treasury and Capital.

The Senior Accountant indicated that this report represented the 3^rd Quarter position for the Council’s finances. After meeting the annual savings target of £250,000, the Council was predicted to end the year £14,000 under budget, which represented just over 0.1% of the overall net revenue budget.

The Council was currently under budget on wages, after the vacancy margin and it was predicted that an underspend of £40,000 would be achieved by year end, with wages being the same, in cash terms as they were ten years ago.

Whilst some departments had predicted that income targets may not be met, these would be offset by reductions and additional income elsewhere.

The Capital spend had been high in 2015/16. Of the total programme of £19.773 million for the year, £17.458 million had been spent to date, of which, almost £17 million had been spent on property acquisition, funded through borrowing from the Public Works Loans Board and/or the Local Enterprise Partnership.

Sundry debts, which included all debts other than those related to benefits, totalled £739,000, an increase of £133,000 on the previous Quarter. £338,000 of this debt related to quarterly rents due.

At £611,000, Housing Benefits debt was down £32,000 on the previous Quarter.

Members sought clarification on the following:

(i)            Although the Council had over-achieved against overall savings targets and whilst recognising that some variances will be cyclical, Members queried why there continued to be large variances against financial targets?

(ii)           Whilst the report indicated that savings of £250,000 had been achieved, the tables reported an adverse outcome of £246,000 on corporate savings. Was this adverse because the savings were in addition to those targeted or not achieved?

(iii)          There was a large increase reported in debtors, but no guidance on whether this was a positive or negative outcome;

(iv)         90% of Council staff were at the top of their grades. Why was this?

(v)          When did the Council previously carry out a skills, capability and capacity review?

(vi)         In terms of capital loans, what rate of interest did the Council pay and over what period?

The Committee noted that staffing was under constant review, particularly in relation to comparisons with other authorities and the possibility of sharing staff with other Councils. It was noted that, in the past 10 years, the number of support staff had been reduced as technology improved, but there continued to be areas of Council work, notably in Planning, where recruiting difficulties were experienced.

Resolved, that

(i)            the Executive Head of Finance be asked to provide more qualitative data on

§    Large variances against individual savings targets;

§    The current level of debtors in comparison to previous years; and

§    The interest rates on capital loans.

(ii)          The Executive Head of Transformation be asked to provide explanations on:

§    The current position where 90% of staff were on the top increment of their grades;

§    When the Council last carried out a skills, capability and capacity review.