Agenda item

The Cabinet considered the Resources Report which gave details of the revenue and capital budget monitoring. The Leader (also the Cabinet Member for Finance) explained that the Council had been heading for a £18 million overspend but through concerted action since September the overspend was now £2.9 million. The Leader wished to thank officers for their hard work but further action was still required and vigilance was necessary due to the recognised risks of dealing with demand led services.

In the medium term there were some positive signs from Government with a consultation on the funding formula which would be population-driven rather than using deprivation indicators and that direction of travel was endorsed; there was also the retention of business rates pilot. However it was necessary to keep the pressure on Government in order to work towards fairer funding. There was also a new grant of £0.175 million to cover additional costs which may arise because of Brexit.

The result of the funding formula was expected in June or July.

RESOLVED that Cabinet:

a)          Endorsed the conclusions of the Cabinet Member with Responsibility for Finance concerning revenue budget monitoring up to 31 January 2019;

b)            noted the current progress regarding savings plans and additional management actions to reduce expenditure;

c)            noted that the Council was forecasting an overspend of £2.9 million after management action, but risks within this forecast remain;

d)            endorsed the Cabinet Member’s conclusions concerning capital budget monitoring up to 31 January 2019;

e)            endorsed the Cabinet Member’s conclusions regarding the treasury management update report;

f)              noted that the Council had responded to the Government’s consultations on the Fair Funding Review and Business Rates Retention Reform with details at paragraphs 81 to 85; 

g)            noted that funding approval was announced in January 2019 to support works to reduce congestion on the A38 at Bromsgrove from Highways England which totals £2.68 million; and

RESOLVED TO RECOMMEND TO COUNCIL:

h)          to approve an increase to the Financial Services revenue budget cash limits to reflect the use of £0.175 million grant funding over 2018/19 and 2019/20 from MHCLG to support additional costs that may arise because of Brexit, noting that Central Government have indicated this is not the only funding it may allocate to Local Government for this purpose.