Agenda item

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

Mr Thompson, Director of Resources, presented the Financial Performance Monitoring Report as at month 5. The Committee was advised that the report was the standard monthly financial performance monitoring report, which set out the summary revenue budget position for the Council and its individual directorates for month 5, the period April 2015 – August 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 Council’s latest capital programme, incorporated the Council’s 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 a similar rate of collection as it had been at the same time last year and the Business Rate collection rate had improved compared to the same point in 2014/2015.

Responding to questions from Members, the Leader of the Council noted that many people were unaware of most of the services provided by the Council until such times as they were required. With particular regards to the overspend in Children’s Services, he noted that Blackpool had the highest number of looked after children in the country and that Children’s Services should be open to explaining the associated cost implications. He further advised that Children’s Services would continue to consider the cost implications of establishing an in-house provision to provide specialist, secure care to looked after children. It was also noted that schools converting in-year to academies had had a significant impact upon the Children’s Services budget.

Members raised questions relating to Community and Environmental Services and it was noted that Waste services would likely be ceasing its green waste collection. The Leader of the Council reported that negotiations would continue with the contractor and the potential for the contractor to run a paid for service would be investigated.

The Committee noted the reduction in overspend from the Resources directorate since the last month’s financial performance monitoring report and questioned how that had been achieved. Mr Thompson advised that it had been mostly achieved as part of the department’s programme of property rationalisation.

Members raised questions relating to the forecasted pressures from rental income within the Central Business District. The Leader of the Council advised that new tenancies were expected to be announced soon and that there were only a small number of units still available to let. The Committee was advised that negotiations with potential occupants were on-going and that the plan would be to attract appropriate tenants, which would help to increase footfall in the area.

It was noted that there was a current overspend of over £3 million and 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 was still time left in the financial year to redress the position. He noted that working balances had been approximately £6 million for the previous two years and advised that it was still hoped that achieving a working balance for that amount could be achieved again relatively soon. The Leader of the Council also advised the Committee that any failures to achieve savings targets for this financial year would be taken into account in the budget setting process for the next financial year. He explained that some of the savings targets had not proved to be deliverable, so a reassessment had been required in certain areas, which was a major factor in the reduction of working balances in the 2015/2016 financial year.

Background papers: None