Agenda item

The Committee will receive the report of the Finance Task Group which met on 23 May 2018 to consider the following finance reports.

Minutes of the meeting of the Finance Task Group (Appendix D1)

Revenue Budget Monitoring Outturn 2017/18 (Appendix D2)

Capital Budget Monitoring Outturn 2017/18 (Appendix D3)

Income Collection April 2017 – March 2018 (Appendix D4)

Review of Treasury Management Activities 2017/18 (Appendix D5)

The Chair introduced the report of the Finance Task Group. The minutes of the Task Group, which had met to discuss the different finance reports, had been included in the agenda and Members were invited to raise any further questions or comments.

A Member noted that there had been a reduction in income from the Leicester Market and the bereavement services. Further to this there was an increase in expenditure in waste management and Looked After Children. It was questioned whether these issues had been taken into account in the main budget.  The Director of Finance stated that the issues the Member had highlighted were not new at the outturn but had been reported during the year and were considered as part of the budget for 2018/19. The Director added that there had been a decline in income from Gilroes Crematorium and the Council was working to mitigate the situation.  Pressures on market traders had become a national issue but there was a plan to improve the offer in the market to help it achieve its target income budget. There had been a legislative change to landfill waste, and the cost of this change had fallen to the Council. The Council were working with Biffa on this. There was also a concern as to the rising costs relating to Looked After Children which had also become a national issue.

The Director was asked how much additional funding the Council received for Adult Social Care (ASC) as the Government had permitted local authorities to increase council tax towards this service. Members heard that the amount spent on ASC far exceeded the amount raised through the ASC precept on council tax. The Director explained that she was required to sign a return to Government that the money raised through the precept would be used for ASC and she gave her assurance that this is the case.

A Member queried the under-spend in the ASC budget and the Director of Finance explained that efficiencies in that area had been made earlier than planned. The under-spend had been set aside to meet the demographic pressures in that service going forward.

The Chair expressed concerns at over-spends in the Looked After Children and Special Educational Needs services. He expressed further concerns that there could be a substantial increase in child protection plans following the introduction of universal credit and urged the new Chair of the Children, Young People and Schools Scrutiny Commission to look into these issues.  A comment was made that while there had been criticisms of universal credit, the system gave people the opportunity to choose how to manage their money. A Member responded that the National Audit Office had criticised the new benefit regime and there were concerns that it was causing more poverty for people. Some claimants had to resort to relying on food banks because they had to wait eight weeks before they received their money.  The Council were working hard to help people and mitigate the impact.

The Chair drew the discussion to a close and asked Members to note the four finance reports.

AGREED:

                   that the following reports be noted:

1)    Revenue Budget Monitoring Outturn 2017/18;

2)    Capital Budget Monitoring Outturn 2017/18;

3)    Income Collection April 2017 – March 2018; and

4)    Review of Treasury Management Activities 2017/18