Agenda item

Resolved: that the report be noted, with reference to the alarms and concerns raised during the discussion.

6.1    Selwyn Thompson (Director of Financial Services) provided an overview of the key points in the report.

6.2    Selwyn Thompson and David Austin (Acting Chief Finance Officer) responded to questions from the Committee – the following key points were noted:

·         It was expected that the financial settlement for local government would be announced in January. It had been delayed by the general election.

·         Councils’ working assumption was that the spending announced by the chancellor in September 2019 would be followed through until next year.

·         The Council had advanced a loan facility to Lewisham Homes for its housing acquisition programme. However, Lewisham Homes was currently using its reserves to acquire the new homes.

·         Indications from government were that that funding would continue for the ‘Troubled Families’ programme. If the funding was discontinued it would create a budget gap of a million pounds and there would have to be a review of which parts of the programme the Council should continue and where the funding should come from.

·         Pressures in children’s services remained. Funding for next year would be made available from the additional social care grant.

·         It was assumed that the government had recognised that there was a funding gap for social care – and that the future funding settlement for local government would reflect this.

·         Not all of the overspending in the children and young people directorate related to social care (a proportion was for transport – and troubled families).

·         Some of the overspend would have to be met from reserves.

·         Some proposals for commercialisation included a ‘stretch’ – to push services to challenge their ways of working.

·         A number of processes were in place to monitor and manage costs in areas that were overspending.

·         There were six years in which the Council used its reserves to balance its budget (averaging £3.5m a year). More than £20m of the reserves were used in this time.

·         Council tax collection tended to improve toward the end of the year.

·         The capital programme was revised towards the end of the year. By the end of last year 82% of the revised budget was spent.

·         The capital fund for the general fund was expected to spend closer to its revised budget than the housing revenue account. Some elements of the housing programme were taking longer to implement than had been anticipated but it was expected that the programme would accelerate next year.

·         There were not significant implications on the general fund from the delay in the delivery of the housing programme.

6.3    In Committee discussions – the following key points were also noted:

·         Members expressed concern about the remaining gap in children’s services following the ‘once off’ injection of additional funds.

·         Concerns were raised about the underachievement of income from commercialisation proposals in the environment division.

·         Members asked about the condition of the Council’s reserves (officers agreed to provide an update on the previous briefing).

6.4    Resolved: that the report be noted, with reference to the alarms and concerns raised during the discussion.