Agenda item

A report from the Director of Finance, Resources and Customer Services is attached. This provides the latest revenue monitoring position as at 30 September 2015 and, a budget 2016/17 update.  (Key decision – reference number 4150)

(Report No.111)

(8.20 – 8.25 pm)

Councillor Doug Taylor (Leader of the Council) introduced the report of the Director of Finance, Resources and Customer Services (No.111) setting out the Council’s revenue budget monitoring position based on information to the end of September 2015.

NOTED

1.               James Rolfe (Director of Finance, Resources and Customer Services) highlighted issues within the report for Members’ consideration. The report forecast an outturn position of £2.7m overspend for 2015/16, this figure had reduced from previous forecasts and action was in hand to continue to reduce this further. Appendix D to the report set out the new savings proposals for 2016/17, as detailed in decision 4 below.

2.               A report would be provided to the next Cabinet meeting setting out the analysis of the Spending Review and as much detail as possible as to the implications for Enfield, paragraph 9.9 of the report referred. This would be dependent on the publication of the Provisional Local Government Finance Settlement. If necessary a supplementary “to follow” paper would be circulated for the December Cabinet meeting, as detailed in decision 5 below.

3.               A major review of the HRA Business Plan had been undertaken, as detailed in Appendix E of the report and decision 7 below.

4.               In response to a question raised by Councillor Brett, James Rolfe explained the funding in relation to the Empty Property Strategy as set out in Appendix A4 of the report. It was noted that the Council had received external grant funding in respect of this work.

5.               Councillor Cazimoglu expressed her concern regarding the projected overspend for Children’s Services, as detailed in the report, and the impact that this could have on the levels of savings required by other Council departments. It was noted that the demographic changes in the Borough had an impact across a wide range of Council services. James Rolfe outlined the work that was being undertaken to address such budget pressures and noted how Enfield compared to other London Boroughs. Members would be asked to take decisions regarding the next year’s Council budget in due course.

6.               In response to a question raised by Councillor Sitkin, James Rolfe explained the Council’s strategy and actions in relation to short and long-term borrowing and how this impacted on the Council’s budget forecasts, as set out in Appendix B of the report.

Alternative Options Considered: Not applicable to this report.

DECISION: The Cabinet

1.               Noted the £2.7m departmental overspend revenue outturn projection.

2.               Agreed that departments reporting pressures should formulate and implement action plans to ensure that all possible actions were undertaken to remain within budget in 2015/16. An exercise to reduce agency staff across the Borough was currently being finalised in order to achieve an in-year saving of £1.5m. This would be part of the mitigation actions in order to manage the departmental overspend. This was reflected in the September projection.

3.               Noted the progress made to date in the preparation of the 2016/17 budget.

4.               Agreed the new savings proposals for 2016-17 set out in Appendix D of the report.

5.               Agreed that, if necessary, a supplementary paper regarding the Spending Review and Local Government Finance Settlement be submitted to the next Cabinet after the publication of the main monitoring report.

6.               Noted the work that had been undertaken to bring the Council’s 30-Year HRA Business Plan back into balance as described in Appendix E of the report.

7.               Agreed that the updated, balanced, 30-Year HRA Business Plan be adopted as the Council’s new “base” Business Plan.

Reason: To ensure that Members were aware of the projected budgetary position for the Authority, including all major budget pressures and underspends which had contributed to the present monthly position and that were likely to affect the final outturn. To agree the early implementation, where possible of the new “Amber” savings for 2016/17 in the current financial year. To agree the HRA 30 Year Business Plan.

(Key decision – reference number 4150)