Agenda item

To consider the level of spending against the Council’s Revenue and Capital budgets for the first four months to 31st July 2015.

Mr Thompson presented the Financial Performance Monitoring Report as at month 4.  The Committee was advised that the report was the standard monthly financial performance monitoring report that set out the summary revenue budget position for the Council and its individual directorates for month 4, the period April 2015 – July 2015, together with an outlook for the remainder of the year. He explained that the report also included an assessment of progress to date against the latest capital programme, incorporated the balance sheet, indicated the level of cash flow and contained information relating to income and debt collection.

Mr Thompson provided Members with details of the Business rates and Council Tax collection rates. Members were advised that the Council Tax collection rate was currently at the same level as it had been last year. He advised that he expected an in-year collection rate of between 92-93% and the target collection rate over a five year collection period was 98%.

Responding to questions from Members, Mr Thompson advised that every service area caused concern in relation to their resilience to further expected budget cuts. He noted that the largest overspend was in relation to Children’s Services, of which a significant factor was due to the placements of a high number of looked after children in the borough. Members noted the work being undertaken to reduce the number of children being looked after and the drive to find suitable, internal foster placements.

Mr Thompson reported to the Committee that there was a forecast budgetary pressure of £676,000 in relation to Concessionary fares, due to an increased bus patronage. However, it was noted that the increased patronage was beneficial for Blackpool Transport Services Limited.

It was also reported that there was a possibility that the £856,000 Waste Management PFI grant could be withdrawn, following the decision to terminate the contract with the private sector firm for the operation of waste recycling facilities and instead transfer operations to a company owned by Blackpool Council and Lancashire County Council. It was noted that the issue was currently subject to judicial challenge. Upon questioning from Members, Mr Thompson explained that the date for the review would be established as part of the judicial challenge process. He also explained that it had been necessary to terminate the contract with the private sector firm as it had not been delivering upon the terms of the contract.

Mr Thompson noted that there was a current overspend of approximately £3.5 million, although that figure should be considered in the context of the overall gross budget of approximately £500 million.  Members raised concerns regarding the reduction in working balances and questioned its implications. Mr Thompson advised that the reduction in forecast working balances was a concern but explained that there were eight months left in the financial year to redress the position, or if the position was not redressed, there would be an option to utilise a proportion of the £45 million of Earmarked Revenue Reserves.

The Committee agreed to note the report.

Background papers: None