Agenda item

To follow

The Cabinet considered a Resources Report. The details were set out in the report.

In the ensuing debate, the following principal points were raised:

a)    The Leader of the Council introduced the report and made the following comments:

·         the provisional financial outturn was breakeven compared with the Council's budget. This outcome masked a number of issues including successes in the financial markets and delays to borrowing but also the pressure on social care and special educational needs transport. However this position was not assured for the future and active management was required to deliver the 2017/18 budget especially the demand pressures for children placements. This position would be kept under review

·         The Open for Business Board had successfully invested a relatively small amount of funds (£3m) and created a number of jobs in the county

·         The Transformation Programme had successfully delivered change and although there had been some slippage of the programme into this financial year, the Council continued to address its financial challenge through active management

·         The additional funding from the Government for Adult Social Care was welcomed and the Council was looking into how to deploy these resources over the next couple of financial years

·         The Council had spent over £130m on capital projects which was delivering major improvements to the county

·         Additional monies from the Government for specific projects in the county were welcomed

·         The Pension Fund had achieved an operating surplus of £34.4m for 2016/17 largely as a result of fluctuations in the financial market. The possibility of locking in those gains would be examined

·         £1m of earmarked reserves had been used to successfully replace Eastham Bridge

b)    The additional capital investment showed the Council's commitment to the Open for Business Policy through investment in major infrastructure projects, notably the Hoobrook Link Road. It was important to ensure that the changes set out in the Transformation Programme over the medium term were carried out to deliver the necessary savings as well as focussing on the key corporate priorities to deliver key projects and services

c)    Although the £3m allocated to the Open for Business Board was relatively small, it had brought about a number of positive projects aimed at stimulating the local economy as well as increasing income to enable investment to address the needs of children and older people. Private sector leverage was welcomed as a means of spending a small amount of public money to attract significant private sector funding into the county

d)    The Council had been working with Hartlebury Castle Preservation Trust with the aim of preserving the future of Hartlebury Castle by creating an integrated visitor destination. The partnership had secured a £5m investment from the Heritage Lottery Fund (HLF) and officers were currently examining how this funding could be utilised within the guidelines set out by the HLF to move the project forward

e)    The Worcester Six capital programme project would produce a significant amount of employment for the county and encourage good transport links. Utility companies should be encouraged to interact with the Council to get their projects underway.

RESOLVED: that

a)    The Cabinet Member with Responsibility for Finance's conclusions concerning financial performance for the year ending 31 March 2017 be endorsed as detailed in paragraphs 7 to 13 of the report and the statutory accounts be finalised on this basis;

b)    earmarked reserves and general balances be updated as detailed in paragraphs 43 to 47 of the report;

c)    the work and success of the Open for Business Board be endorsed;

d)    the current progress and successes regarding the service reforms programme be noted;

e)    the approach to allocate additional  one-off Adult Social Care funding of £10.1 million in 2017/18, £6.8 million in 2018/19, and £3.4 million in 2019/20 received through a Section 31 Specific Grant be endorsed;

f)     COUNCIL BE RECOMMENDED to approve an increase to the capital programme cash limits  to include additional schools, highways and skills funding as detailed in paragraph 34 of the report;

g)    the approach to support the cash flow position of the Hartlebury Castle Project be endosed in advance of receiving approved grant funding, subject to appropriate financial due diligence being in place; and

h)    the report on borrowing and lending transactions during 2016/17 detailed in paragraphs 54 and 55 of the report and Appendix 4 be noted.