Agenda item

Report from the Cabinet Member for Finance and Housing is attached

Councillor O’Brien, Cabinet Member for Finance and Housing presented the Revenue and Housing Revenue Account Outturn Report 2018/2018

The report provided Members with the details of:

·        The revenue outturn figures in respect of the last financial year (2018/2019).

·        Major variances between the revised estimate and the outturn;

·        The level of school balances;

·        HRA outturn for the year;

·        The minimum level of balances in the light of risk assessments

Those present were given the opportunity to make comments and ask questions and the following points were raised:-

·         Councillor Walker referred to bus lane enforcement in Bury and the fact that the income from this was projecting a shortfall from previous years. Councillor Walker asked how much the bus lanes cost the Council.

Councillor O’Brien explained that the contract for the bus lanes was covered by NSL. The drop in income was anticipated income but would not be a loss as there would still be income from the schemes even if not as much as was initially forecast.

·         Councillor Powell referred to the Dedicated Schools Grant and the recovery plan that was set out within the report in relation to this. Councillor Powell asked what the £6000 was that was referred to within the Schools Mandatory Cost Threshold.

It was explained that each school had to pay the first £6000 for each High Need pupil within its school.

·         Councillor Lucy Smith asked what measures the Council had in place to check what was happening in relation to the budget and slippage etc.

Councillor O’Brien explained that the Budget Recovery Group had been established and met regularly to monitor slippages within the budget, establish whether the actions in place in relation to this were working and if not to look for alternative actions.

The Savings Delivery Group monitored savings going forward and through savings trackers. The cost bridges and variance analysis continue to be produced each quarter as well as regular updates of the departmental savings trackers. Reports containing this information were provided on a regular basis to the Joint Executive Team, this Overview & Scrutiny Committee, the Cabinet, Audit Committee and Joint JET / Cabinet meetings.

·         Councillor Lucy Smith referred to increased and unmet demand and asked whether the Council looked at this.

Councillor O’Brien explained that increased and unmet demand formed part of the risk management approach. The Transformation Fund would cover some of these areas and work was being carried out in relation to education, self-care and prevention as well as different ways of sign-posting and prescribing.

·         Councillor Susan Southworth referred to the fact that some schools’ balances were increasing and asked if there were any plans to ‘claw-back’ balances as had been done a few years’ ago.

Councillor O’Brien stated that there were no plans for this to happen.

·         Councillor Stella Smith explained that she had been informed that TfGM were considering charging retired travel pass holders to travel on the Metrolink and Trains at a cost of £10 per year. Councillor Smith stated that this would prohibit some people from getting out and about which could be detrimental to health.

Councillor O’Brien stated that he would report these concerns to the Greater Manchester Mayor.

·         Councillor Walker referred to some schools holding hundreds of thousands and pounds in reserves whilst saving for a project. He was aware that schools weren’t allowed to have excessive amounts in reserves and asked whether schools were questioned about this.

Councillor O’Brien reported that once a school hits a certain threshold this would trigger an intervention where they would be asked to explain what they were planning to do with the money they were keeping back.

·         Councillor Nick Jones referred to paragraph 7.5 of the report relating to the level of rent arears and asked what was being done about the amount of arrears.

Mike Woodhouse, Chief Finance officer explained that there was confidence that some of the debt was recoverable. The Council had invested additional capacity in debt recovery teams. The teams were recovering outstanding debts and were covering their costs.

Councillor O’Brien stated that Universal Credit was having an effect on debt and debt collection and he suggested that a more in-depth report in this issue be provided to the Committee.

It was agreed:

1.     That the final outturn for 2018/19, and explanations for major  variances be noted;

2.     That the recommendations of the Section 151 Officer for the     minimum level of balances in light of the review of the   corporate risk assessment be endorsed.