Issue - meetings

The report of the Executive Manager – Finance and Corporate Services.

The Service Manager – Finance provided the Revenue and Capital Budget Monitoring 2018/19 for quarter 3 which summarised the budget position for revenue and capital as at 31 December 2018, with a recommendation for referral to Cabinet on 12 February 2019.

The Service Manager – Finance informed the Group that the financial position has moved from a relatively small adverse variance to a more favourable variance of £1.01m. This is due to three one off items of income:

·         Additional income from planning applications (£275k)

·         Improved position on business rates as a result of a renewable energy assets (£255k)

·         The Nottinghamshire Business Rates Pool had an uncommitted surplus for 2017/18 which were shared proportionately according to the pool contribution (£127k)

The overall position of £1.007m favourable variance represents a -9.63% variation against the Council’s net expenditure.

The Service Manager – Finance explained that as a result of the one off items of income, the amount transferred to reserves is £2.09m which is £313k more than the original budget. She added that this is to be used to mitigate future deficits and the impact of future risks associated with changes to the retention of Business Rates and Fairer Funding expected in 2020/21.

The Service Manger – Finance added that the Capital Programme shows a planned underspend of £12.698m due to the ‘slow down’ in asset investment due to risk in the property market and also the decision to no longer build a replacement Depot. She added that the overall position may still change in the final quarter of 2018/19 as managers continue to drive cost savings, and raise income, against existing budgets.

It was RESOLVED that report be referred to Cabinet for approval noting:

a)    The projected revenue position for the year with a -9.63% variance (1.007m) in revenue position and;

b)    The capital underspend of £12.698m as a result of capital scheme re-phasing and projected savings