Agenda item

To receive a report from the Head of Governance and Scrutiny Support presenting details of the outturn for the financial year 2017/18.

The Head of Governance and Scrutiny Support submitted a report that introduced a report considered by the Executive Board at its meeting on 27^th June 2018, which set out the Council’s financial outturn position for 2017/18 for both revenue and capital.

The following were in attendance for this item:

-  Councillor James Lewis, Executive Member for Resources and Sustainability

-  Doug Meeson, Chief Officer, Financial Services

-  Richard Ellis, Head of Finance

Members discussed a number of matters, including:

·  The Housing Revenue Account (HRA) surplus. Officers present confirmed that underspend is carried forward and ring-fenced to the HRA for future spending. It was also noted that the surplus of £1.4m should be considered in the context of the HRA’s turnover of £253m.

·  Successful VAT claim in relation to sports admissions. Members were pleased to hear of the £7.3m income through VAT claims for sport admissions, and wished for their congratulations to the officers responsible to be noted.

·  Planning and Building Control Service. The Board congratulated the service for generating a surplus income of £0.7m and suggested that some of the surplus be allocated to recruitment within Planning and Building Control services.

·  Unused Council-owned buildings. Members noted a number of Council owned buildings in their wards that they knew to be vacant, some of which were suggested to have been vacant for a number of years. Officers present confirmed that they would supply the Board with the relevant information for all Council owned buildings Members listed. Members agreed for more detailed discussions to take place at a future Board meeting (minute 23 refers), to understand the prevalence of unused Council buildings across the city and the financial implications of this to the Council.

·  Housing Benefit budget shortfall. Members sought clarity regarding the £1.9m shortfall and were informed by officers that when an overpayment is made, the grant received from central government is reduced. The level of overpayments was less than projected, which in turn reduces the level of income receivable from the Government. However, Members were also informed that there are other factors within the Welfare & Benefits service which have reduced the overall level of overspend in the service to £0.7m. 

·  School reserves. Members were informed that the large surplus in school reserves cannot be controlled by the Council, as budgets are determined directly by local authority maintained schools’ governing bodies. Members were also informed that the figure represents the net balance carried forward for all schools, and will include deficits as well as surpluses.

·  Collection of Council Tax. Members sought clarification of the monetary value of the percentages provided in the report. Officers informed Members that every 1% of Council Tax receivable equates to £3m. The overall target for Council Tax collection is 99%, since taxes are still being collected after the financial year in which they are due. The percentages shown are limited to in-year collection, whereas if account is taken of collection after the year that the debit is due then the collection rate is higher than that contained in the report e.g. Council Tax collected prior to 2013 is 99.31%. It was agreed that overall collection rates and how this equated to money receivable should be included in future reports.

RESOLVED – That the contents of the report be noted and the requests for information be provided to the Board.