Agenda item - Targeted Budget Management (TBM) Provisional Outturn 2017/18

Report of the Executive Director for Finance & Resources (copy attached).

7.1       RESOLVED:

(i)            That the Committee note that the provisional General Fund outturn position is an underspend of £1.392m (including release of the risk provision) and that this represents an improvement in resources of £0.008m compared to the projected and planned resource position at Month 9 taken into account when setting the

2018/19 budget.

(ii)          That the Committee note the provisional outturn includes an overspend of £0.219m on the council’s share of the NHS managed Section 75 services.

(iii)         That the Committee note the provisional outturn for the separate Housing Revenue Account (HRA), which is an underspend of £0.644m.

(iv)         That the Committee note the provisional outturn position for the ring-fenced Dedicated Schools Grant, which is an underspend of £0.201m.

(v)          That the Committee approve carry forward requests totalling £1.578m as detailed in Appendix 4 and included in the provisional outturn.

(vi)         That the Committee approve the Parking Virement detailed in paragraphs 6.2 and 6.3.

(vii)        That the Committee approve the creation of 3 earmarked reserves as set out in paragraph 6.44.

(viii)      That the Committee note the provisional outturn position on the capital programme which is an underspend variance of £4.429m.

(ix)         That the Committee approve the capital budget variations and slippage requested in Appendix 6 and new capital schemes detailed in Appendix 7.

7.1       The Committee considered the report of the Executive Director for Finance & Resources, which set out the provisional outturn position on the Council’s revenue and capital budgets for the financial year 2017/18.

7.2       Councillor Sykes referred to paragraph 3.30 of the report, and noted that the overall deficit for collection of business rates was higher than forecasted, and asked why that was. The Executive Director for Finance & Resources said that he would get further information on the reasons and would advise the Councillor in due course.

7.3       Councillor Sykes referred to the Parking Service budget and the virement of £867k, and asked for more information. He added that parking was an issue within the city, and he had received many complaints about both the high cost of parking and the lack of available spaces. The Executive Director for Economy, Environment & Culture said that paragraph 6.2 of the report provided information about the virement. A significant number of new schemes within parking had been introduced, which were set out in the report, and which would increase the revenue from parking.  The net cost of the changes was £550k, which would be funded from the increase in income. The restructure would not impact on the overall budget for the service which would be able to meet its 2018/19 budget target. Councillor Mitchell (Chair of Environment Transport & Sustainability Committee) said that the virement would be used to support a partial restructure of the city’s parking services and functions. A business case has been developed and would put residents first, such as Blue Badge fraud.

7.4       Councillor Sykes referred to the cost of temporary accommodation which continued to rise. The Green Group had put forward a budget amendment and a Notice of Motion, which would have mitigated that, but there had been no follow up in response to that Notice of Motion. The Executive Director for Neighbourhoods, Communities & Housing said that the use of temporary accommodation was falling as a result of the Trailblazer fund, and the overspend was due to de-camps from long term temporary accommodation. The Housing Leadership Team were putting in place plans to address the overspend, and a report would come to the Housing & New Homes Committee in September 2018. Councillor Meadows (Chair of Housing & New Homes Committee), said that there were high numbers of people accessing our temporary accommodation which had had an impact. However, the Council were looking at innovative ideas and for the first time were looking at Council rented temporary accommodation, and now had ten two-bed units at Stonehouse Court, with twelve additional properties due to be available in Oxford Street. It was the hope that more temporary accommodation could be provided which would help keep costs down.

7.5       Councillor Wealls referred to the overspend for Able & Willing and asked where the authority were with the business plan. The Executive Director for Families, Children & Learning said that a cross party working group were currently considering that and looking at a range of options. It was initially hoped that the working group would conclude in the summer, but that it may take slighter longer.

7.6       Councillor Wealls noted that there was an underspend for Libraries of £270k and that £40k had been raised through two leases. He said that there had been a recent meeting at Hove Library to discuss changes made to the library, the nursery provision there and the café, and asked why the changes were necessary given the underspend this year. The Executive Director for Neighbourhoods, Communities & Housing said that the underspend was due to funding for new kiosks which had been set aside as money had been provided from elsewhere, and therefore it wasn’t an on-going saving. Councillor Wealls asked where the overspend would be spent, and the Executive Director Finance & Resources that it would be used to ease pressure elsewhere. Councillor Janio said that if the Conservative Group were in administration from 2019, they would keep Hove Library at the Carnegie Building.

7.7       RESOLVED:

(i)            That the Committee note that the provisional General Fund outturn position is an underspend of £1.392m (including release of the risk provision) and that this represents an improvement in resources of £0.008m compared to the projected and planned resource position at Month 9 taken into account when setting the

2018/19 budget.

(ii)          That the Committee note the provisional outturn includes an overspend of £0.219m on the council’s share of the NHS managed Section 75 services.

(iii)         That the Committee note the provisional outturn for the separate Housing Revenue Account (HRA), which is an underspend of £0.644m.

(iv)         That the Committee note the provisional outturn position for the ring-fenced Dedicated Schools Grant, which is an underspend of £0.201m.

(v)          That the Committee approve carry forward requests totalling £1.578m as detailed in Appendix 4 and included in the provisional outturn.

(vi)         That the Committee approve the Parking Virement detailed in paragraphs 6.2 and 6.3.

(vii)        That the Committee approve the creation of 3 earmarked reserves as set out in paragraph 6.44.

(viii)      That the Committee note the provisional outturn position on the capital programme which is an underspend variance of £4.429m.

(ix)         That the Committee approve the capital budget variations and slippage requested in Appendix 6 and new capital schemes detailed in Appendix 7.