The Chief Officer (Financial Services) submitted a report which presented the Council’s projected financial health position for 2019/20 as at Month 9 (December 2019) of the financial year.
Responding to a Member’s enquiry, the Board received further information on the causal factors regarding the deficit position in respect of the Business Rates Collection Fund, as at month 9 of the financial year, together with the actions being taken to correct the position in future years.
In response to a Member’s enquiry on the Council’s current underspend regarding the Early Years block of the Dedicated School Grant (DSG), the Board received further information on how the underspend occurred, which related to the disparity between how the Government calculated funding and the payments made by the Council. Also, it was noted that given the underspend, consideration was being given to potentially increasing the hourly rate paid in 2020/21 to childcare providers in the city. However, it was also noted that the Council was permitted to use DSG block underspends to offset over-spending blocks, and as such the correct balance needed to be struck.
RESOLVED –
(a) That the projected financial position of the Authority as detailed within the submitted report, as at Month 9 of the 2019/20 financial year, be noted;
(b) That with regard to the risk that the budgeted level of capital receipts may not be receivable in 2019/20, the progress which has been made to date and the fact that work is ongoing to identify budget savings proposals which will contribute towards the delivery of a balanced budget position in 2019/20, be noted.