Agenda item

To consider the level of spending against the Council’s Revenue and Capital budgets for the first three months to 30 June 2017.

The Committee considered a report which detailed the level of spending against the Council’s Revenue and Capital budgets for the first three months to 30 June 2017.

The report was presented by Mr Steve Thompson, Director of Resources who responded to questions from the Committee on the report’s content.

In relation to Council Tax collection rates, the Committee pointed out that Blackpool had fallen behind other local authorities with whom it might be compared with in terms of deprivation levels and demographics, for example, Hull and Torbay. Asked if there was anything that could be learned from elsewhere in terms of best practice, Mr Thompson explained that as well as looking at what other Councils had been doing, the Council’s Corporate Delivery Unit had been commissioned to carry out a review with a view to improvement being achieved in this area. He acknowledged that Blackpool compared unfavourably with other similar ranked Councils. He added that Blackpool had a shared service arrangement with Fylde Council and that Fylde’s in-year collection rate using the same staff, systems and processes as Blackpool was 6% higher. He also pointed out that the Council Tax Reduction Scheme had had a major effect on collection levels and that other Councils had in fact increased their bottom-slice percentages. Pointing out that staffing levels in the Revenues Division had been low, Mr Thompson explained that Transformation funding was now being used to increase staff numbers which should result in an upturn in collection rates and yields.

The Committee asked about the high levels of demand within the Children’s Services Directorate and whether there had been any reductions in terms of the numbers of looked after children. Mr Thompson explained that there had now been three successive months of reductions in terms of both numbers and costs.

In terms of the wider financial strategy, the Committee asked how the Council was performing in terms of the overall target. Mr Thompson suggested that although the signs were encouraging, it would be premature to make any sort of assessment at this stage.

Asked how the Business Loan Fund was performing, Mr Thompson explained that a Business Loan Fund Panel met on a monthly basis and had so far approved three loan applications. From a target of £60m this year, two thirds of that amount had been committed to date and a great deal of work was being carried out to achieve the full target. He further explained that more work would be carried out on the marketing side going forward.

In terms of rental income from the Central Business District, the Committee asked whether it was now time to consider a change in the strategy with regard to rent levels in order to attract higher levels of occupied properties. Mr Thompson explained his belief that it was important to hold the line with current rents. He spoke of the fine balance in terms of attaining a critical mass for such premium units and not devaluing them and informed the Committee that there was currently a number of expressions of interest being considered.

Members asked about the £36.7m one-off payment made to the Lancashire County Council Pension Fund. Mr Thompson explained that Blackpool had been given an opportunity to make the payment to attract a discount in relation to the next three years’ historic deficit and future service rates. The payment would benefit both the Pension Fund and the Council’s Revenue Fund.

The Committee asked whether the reduction in the Education Services Grant within the Children’s Services Directorate was fair in relation to Blackpool. Mr Thompson explained that the grant levels had been reduced across the country and was therefore not unique to Blackpool.

The Committee agreed to note the report.

Background papers: None.