Agenda item

Update from the Executive Member for Finance and Support Services

To receive a presentation and update from the Executive Member for Finance and Support Services on his Portfolio

Minutes:

The Executive Member for Finance and Support Services presented Members with an overview of his portfolio and circulated a briefing note to support his presentation.

 

The Executive Member referred to the outturn for last year and the progress made in relation to the potential budget overspend for this year.  The Executive Member explained that the Council’s budget spend was around £60Million.  Following the introduction of a number of measures to mitigate the overspend, (including leaving posts vacant), it was anticipated that this would be approximately £56k.  He stated that last year’s overspend was £166k and that this was something which had affected many Councils.  He stated overspends should be considered in the context of the size of the budgets, for example if the overspend was £150k, this represented a ¼ of 1% of the overall budget.

 

The presentation addressed a number of issues including changes in base lines, the national context, changes in Government funding and measures to mitigate the impact of funding reductions.  The Executive Member referred to changes which could be made in relation to Council Tax increases and in relation to Business Rates retention.  Some Members expressed concern regarding a proposal to remove the New Homes Bonus from the MTFP and how this would impact on the allocation to Town and Parish Councils.

 

Councillor J Wyllie questioned the process in place in reporting overspends and queried whether Officers should be reporting the overspends directly to the Executive Member.  The Head of Strategic Finance and Property explained that overspends were closely monitored by Leadership Team and reported regularly to Members via the Corporate Healthcheck.  She added that the outturn figures were part of the Corporate Healthcheck and that Heads of Services received information on a monthly basis which was checked by Accountancy.  The Executive Member reiterated that he worked closely with the Head of Strategic Finance and Property and was advised of issues coming out of Leadership Team on a regular basis.  He explained the process and controls in place in reporting overspends.

 

The Head of Strategic Finance and Property commented that overspends early in the year was not usual but more often than not, this changed towards the end of the year due to actions taken to mitigate spend.


Councillor P Oldridge queried whether the measures to claw back expenses  in the latter part of the year had impacted negatively on services.  The Executive Member confirmed that the overspend position had improved considerably and that the Council was heading towards a balanced budget as a result of the measures introduced.

 

The Committee Chairman queried whether the Council was able to retain 100% of Business Rates.  The Head of Strategic Finance and Property explained that there were changes in relation to the Business rates retention scheme in future years proposed, in the new budget in regard to 75% retention.  She also outlined what measures could be used in relation to increasing Council Tax and the use of Business Rates.

 

Councillor P Ruffles queried the arrangements for collecting Business Rates as part of the pilot project that Hertfordshire had applied to Central Government to be a part of.  The Head of Strategic Finance and Property explained the background to the Hertfordshire Pilot scheme in relation to the distribution of Business Rates.

 

The Committee Chairman, on behalf of Members, thanked the Executive Member for his presentation.

 

RESOLVED – that the presentation be received.