Pre-Decision Scrutiny Questions and officer responses were noted.

DECISION

1.    To note the Council’s provisional outturn position for the General Fund, Dedicated Schools Budget and HRA budgets agreed for 2018-19, based on information as at the end of March 2019 and subject to the ongoing closure process as detailed in the appendices.

2.    To note the summary savings position.

Action by:

CORPORATE DIRECTOR, RESOURCES (N. MURTON)

(Chief Accountant (K. Miles)

Councillor Candida Ronald, Cabinet Member for Resources and the Voluntary Sector introduced the report providing the provisional budget outturn for 2018-19 compared to the overall budget. She highlighted the small overall overspend. She also noted a number of specific issues including:

·         Disappointment where savings targets had slipped.

·         The Capital expenditure was slightly better than forecasted.

·         The planned use of reserves.

·         Pressure on the schools’ grant.

During discussion Members noted a number of further points including that:

·         Improved monitoring and systems should help increase financial discipline.

·         After nine years of austerity, savings were getting even more difficult to find.

·         Foresight had been shown in increasing the planned purchasing of property in the current markets.

·         The known risk of an overspend on the new Town Hall due to asbestos removal.

The Mayor welcomed the report, noted the pre-decision scrutiny questions and officer responses and agreed the recommendations as set out.

RESOLVED

1.    To note the Council’s provisional outturn position for the General Fund, Dedicated Schools Budget and HRA budgets agreed for 2018-19, based on information as at the end of March 2019 and subject to the ongoing closure process as detailed in the appendices.

2.    To note the summary savings position.

This report introduces the Draft Provisional Outturn report for 2018/19. It includes details of the Revenue and Capital outturn positions, the projected position of the Dedicated Schools Budget and the Housing Revenue Account and outlines progress made against savings targets as well as other key financial indicators.

The Committee is asked to note and comment on the report which is to go to Cabinet on 22nd May, 2019.

The Committee received a report that introduced the Draft Provisional Outturn report for 2018/19. It also included details of the Revenue and Capital outturn positions, the projected position of the Dedicated Schools Budget and the Housing Revenue Account and outlines progress made against savings targets as well as other key financial indicators.

The Committee asked a number of questions about the proposals and the points raised are summarised below:

The Committee noted:

·         That the Council could choose to monitor its budgetary performance against an alternative timeframe but it is considered that the reporting schedule provides the appropriate balance to allow strategic oversight of the budget by members and to manage the Council’s exposure to financial risk;

·         That more frequent monitoring is undertaken by officers and considered by individual Service Directors and the Council’s Corporate Leadership Team (CLT) including approval of management action;

·         That notwithstanding the above, this is the draft outturn report and it is good financial management practice to report this to elected members;

·         That the extent that there are options for managing the issues identified, these have been highlighted in the report in order to ensure that the Elected Members have a full picture of the issues and proposed solutions as part of their scrutinising;

·         The Capital Board and the Corporate Directors to improve performance are holding people to account for the schemes that they are delivering;

·         That the fining of illegally parked cars continues to raise monies to fund improvements/maintenance of the street scene;

·         That consideration is being given to finding a value for money way to utilise assets such as Jack Dash House e.g. Property guardianship whereby people are granted accommodation within such a property in exchange for keeping the property under observation and in good condition, with their continued occupation providing a disincentive for the property to be occupied by squatters;

·         That the Council are working to mitigate overspends through effective policies in service areas e.g. SEN Review solving SEN Budget pressures with particular reference to the Transport Budget;

·         That the Directorates are working to improve recruitment/retention in service areas so as to reduce the need for agency workers;

·         Wished to receive a breakdown of the service areas by budget;

·         That with regard to the Fair Funding Review there are many factors that drive the demand for and cost of services within London. The overarching drivers, however, relate to deprivation, area costs (linked to London’s unique labour and property markets), and London's changing population. Therefore, it is important that the needs assessment within any new funding formula continues to include an area cost adjustment. This is incredibly important for London as the costs of delivering services in the capital and surrounding area are higher as a result its unique property and labour markets;

·         That Quarterly Monitoring reports would be provided to the Scrutiny Lead Member for Resources;

·         It would receive regular updates on the expenditure on the to turn the former Royal London Hospital site in Whitechapel into the Borough’s new Town Hall; and

·         Noted  ...  view the full minutes text for item 6