To provide Cabinet with information on the Council’s financial performance as at 31^st March 2015.

The Corporate Director Resources submitted a report to provide Cabinet with information on the Council’s financial performance as at 31 March 2015

She informed Members that the overall outturn at 31 March 2015 shows a balanced position.  Directorate budgets provided a net underspend of £1.796 million and corporate budgets a net underspend of £2.991 million.  She stated that the under spend on Directorate net budgets for the year is a result of a number of factors including the maximisation of grant and other income, strict vacancy and sickness management, increased productivity on trading accounts and savings resulting from improved systems and processes.  The sum of £2.829million was drawn down in year from approved earmarked reserves to meet specific one off pressures identified

The Corporate Director Resources stated that the budget approved for 2014-15 included savings proposals of £11.274 million, (5.2% of net service budgets.) £573,000 of these proposals were not realised in 2014-15, but the expenditure associated with them had been offset by vacancy management, the use of one off Directorate Earmarked Reserves and the maximisation of grant income from the Welsh Government’s Regional Collaboration Fund and other grants such as Intermediate Care Fund.  As such, there is still a recurrent £573,000 pressure on 2015-16 budgets which will need to be addressed by implementing the proposals in Table 2 below or identifying and delivering alternatives. 

She also highlighted in the report that the over spend of over £567,000 on Looked After Children has been offset by underspends across other services within the directorate. 

The Corporate Director for Resources then referred to the Council’s Capital Programme 2014-15.  The original budget approved by Council on 19^th February 2014 was revised and approved by Council in July and December 2014, and then again in February 2015 to incorporate budgets carried forward from 2013-14, slippage into 2015-16 and any new schemes and grant approvals.  The revised programme totalled £32.757million.  The total budget as at 31^st March 2015 is £30.813 million, which takes account of additional approvals of £5.477 million and slippage of £7.421 million into 2015-16 identified in the last quarter.  She informed Members that the total expenditure at 31^st March 2015 is £28.230 million, resulting in an under spend of £167,000 on BCBC resources.

The Cabinet Member Resources thanked the Corporate Director Resources for her report to Cabinet.  He stated that in 2014-15 the Authority made £11million in revenue budget reductions which was a major challenge.  In the expectation of further significant cuts in 2015-16 and beyond the Authority has been implementing the Medium Term Financial Strategy and working hard across the organisation to reduce expenditure in a planned way to minimise the impact on local communities. 

As well as delivering the budget reduction plans the Authority has realised underspends which will be used to support specific directorate and corporate risks and pressures, ensuring that the Council are able to cope with expected cuts and risks over the next period.  In line with MTFS principles the Council ended the financial year with a breakeven position and a Council Fund of £7.45million.  On Capital the Authority had an under-spend of £167,000 overall following slippage in 2015-16.

He further added therefore, this report should be set in the emerging context of the recent announcement of £50 million of in-year cuts to the Welsh Government budget; growing pressures on the NHS; and an outlook that will at least replicate the difficulties of the last few years.  Against that background BCBC’s performance in 2014-15 provided some reassurance that its robust approach to financial planning and management was providing resilience and becoming embedded in the organisation’s culture.  He added that the fact remains that austerity was deepening and huge challenges lay ahead. 

RESOLVED:               That Cabinet noted:

1.    The final revenue and capital outturn position for 2014-15;

2.    The impact of the underlying budget pressures on the Medium Term Financial Strategy and in particular the revenue budget for 2015-16; and

3.    The earmarked reserves position in appendix 3 of the report