To comment on the Cabinet report.

Cllr Jack Rankin Lead Member for Economic Development and Property presented the report regarding the Council’s financial performance to date.

Cllr Rankin informed the Panel that Cabinet was due to consider the proposed Budget for 2017/18 that was aimed at protecting the most vulnerable residents as well as laying out the serious investment required to deliver regeneration projects as well as remaining a low tax Council, with the core Council Tax rising by less than one percent.

For this financial year the report was showing a projected £539,000 underspend on the General Fund which was a further improvement of £66,000 since the report was last presented to Cabinet.  Cllr Rankin reported that as such the Council remained in a strong financial position with combined General Fund reserves of £6.37 million, which was in excess of the £5.27 million recommended as a minimum level.

Cllr Rankin gave the following update regarding each of the Council’s directorates:

Adults, Children and Health Services were projecting an overspend of £72k which was a decrease of £120k since last reported.  There had been significant impacts; both favourable and adverse coming from demand led services, especially where demand was difficult to predict and when small fluctuations could have significant impact.

Corporate and Community Services were predicting a £64k underspend with improved positions in development and regeneration being offset by small pressures in leisure services and visitor management.

Operations and Customer Services were reporting an underspend of £542k which was an improvement of £11k since last reported.  There had been revenue additions of £45k for ICT transfer to Optalis and £20k into CCTV.

Cllr Rankin also directed the Panel to the cash balances projection which was in line with previous months, he also pointed the Panel to section 4 of the report that highlighted the capital programme with reported slippages.  Cllr Rankin reported that the proposed budget estimated new borrowing requirements of £73 million.

Cllr Rankin thanked officers and Members for all their hard work in steering the authority into a good position; especially when considering the financial position being reported by other authorities setting their budgets.

Cllr Quick asked for clarification on section 4.14 of the report where it was reported that £700k provision for additional traveller pitches would no longer commence due to S106 funding not being received.  It was agreed that an update would be circulated to the Panel.

Cllr Dr L Evans mentioned that the report showed that there had been a decrease in spend for adult social care but the authority was trying to get more funding into adult mental health.  The Panel were informed that this was about better commissioning of placements that had produced a saving.

Cllr Jones reported that the smoking cessation contract was about being pro-active and thus she was concerned that there was a reported underspend.  Cllr Rankin reported that the saving was as a result in the review undertaken by Cllr Carroll that resulted in the targeted approach.

Cllr Jones asked if there would be any impact regarding the traveller pitches that were not going to be produced.  The Panel were informed that the assessment criteria had changed and new assessments were being carried out as part of the borough local plan. 

Cllr Dudley reported that with regards to mental health there was expecting to be considerable demographic growth in the Royal Borough and that Cllr Carroll, Principle Member for Public Health and communications,  was looking at Mental Health.    

Cllr Dr L Evans reported that statistics showed that the borough had a net loss of people aged between 20 to 40 years of age but an increase in those 64 and over.  Cllr Dudley replied that a main driver for young people leaving the borough was the cost of housing and that this would be looked at by the Borough Local plan.  Statistics also showed the need to look at long term provision for adult social care.

Cllr Dr L Evans also asked if the slippage in the Capital Programme could adversely impact on a projects cost.  The Panel were informed that slippage on the programme usually occurred as invoice cycles of contractors did not fit into the Council’s Financial cycle.

Resolved unanimously: that the Corporate Services O&S Panel considered the Cabinet report and fully endorsed the recommendations.   The Panel have requested additional information regarding the additional traveller pitches as detailed in section 4.14 of the report.