Cabinet Member for Finance

Cabinet considered the report of the Head of Finance and the above Cabinet Member which set out the outturn position for 2014/15. 

The Cabinet Member for Finance introduced the report and was pleased to note that the Council had again been able to deliver services at a lower cost than budgeted for.  He stated that both he, Cabinet colleagues and Senior Management Team were totally committed to generating additional income whilst reducing the spending of public money.

The Cabinet Member for Finance reported that the revenue underspend was £1.4 million.  He explained that this was largely due to: the additional waste contract savings which were now taken as a base; and the higher than budgeted for planning fees.  With regard to budgeting for planning fees, the Cabinet Member for Finance considered this should be budgeted at a realistic level.

The Cabinet Member outlined the importance of Business Rates as set out on page 13 of the report.  He spoke about how complicated the arrangements for forecasting and accounting for business rates were, and therefore how volatile that income stream could be.  He explained that the increase in business rates income was due to the number of new businesses being set-up in the Borough. 

A Member welcomed the report and congratulated the Cabinet Member for Finance and Head of Finance and his team for their stewardship of SBC’s finances.  Members raised the following points:  encouraging that whilst the national rate of employment had fallen, Swale was ‘bucking the trend’ with 400 new jobs being created; and welcome the positive comments from the Council’s external auditors, Grant Thornton, about how SBC managed its finances.

In response to a query from a Member, the Cabinet Member for Environmental and Rural Affairs stated that funding would be available within the current financial year for wall repairs to be carried out at Newington Car Park as agreed at Cabinet on 11 March 2015.

RESOLVED:

(1)   That the revenue underspend on services of £1,973,400, a £277,490 rollover of specific and other grants, and a rollover of £259,500 due to an accounting adjustment re play areas, leaving a net underspend of £1,436,410 be noted.

(2)  That the revenue rollover of specific and other grants of £277,490 and £259,500 as set out in Table 3 and Table 4 Appendix I be approved.

(3)  That the net revenue underspend on business rates of £190,230 be noted.

(4)  That the further revenue service rollovers from 2014/15 and the setting up of new reserves, as set out in Table 4 Appendix I be approved.

(5)  That the Head of Finance be delegated authority to allocate the uncommitted underspends to reserve funds.

(6)  That the revenue service bids of £402,100 as set out in Table 5 Appendix I be noted.

(7)  That the capital rollovers of £319,550 as detailed in Table 10 Appendix I be approved.

(8)  That the amendments to the Council’s 2015/16 capital programme as detailed in paragraph 3.18 be approved.

(9)  That an amendment to the Council’s Treasury Management Strategy 2015/16 as detailed in paragraph 3.31 be approved.