Agenda item - Financial Q2 Performance 2018/19

Officer: Richard Simpson

Key decision: no

The Leader of the Council delegated to the Cabinet the power to make the decisions set out below

RESOLVED to

1. Note the current revenue outturn forecast at the end of the second quarter of 2018/19 of £1.266m, this is before exceptional items of £2.279m, resulting in a total overspend of £3.545m. If the £3.545m is not reduced by the end of the year then the £4.700m contribution to reserves identified in paragraph 2.2 will be reduced to a £1.155mcontribution to reserves;

2. Note the ongoing engagement with and lobbying of Government by the Council for additional funding for Croydon, both in general terms and specifically Unaccompanied Asylum Seeking Children given Croydon’s gateway status, fire safety measures and mitigation of the impact of the Universal Credit implementation;

3. Note the HRA position of a £0.475m forecast underspend against budget;

4. Note the capital outturn projection of £427.8m, forecast to be an underspend of £19.6m against budget; and

5. Note the changes to the capital programme set out in paragraph 7.6, Table 6 and Appendix 2 of the report.

The Cabinet Member for Finance & Resources informed Members that a £1.26m overspend was forecasted before exceptional items were included. Work was ongoing to ensure that a balanced position was possible before the end of the financial year; however it was noted that the scale of austerity and the increasing level of support residents required contributed to the overspend.

The Cabinet Member highlighted that there had been a shortfall of £7m funding for unaccompanied asylum seekers, £10m of fire safety works had been undertaken which the government had not provided funding for, and £3m remained outstanding for being a Universal Credit pilot authority. The shortfall in funding was stated to be a cause of the financial challenges; however work would continue to balance the budget.

The Leader noted that the administration had a tight grip on the budget despite the pressures that had been experienced. The LGA, it was stated, had recognised that it was national travesty that there was a funding gap for adult and children social care that had not been addressed. Furthermore, the Leader noted that the government would not be announcing the national funding agreement which would cause additional financial pressures.

In response to Member questions the Cabinet Member noted that enforcement income had increased; however it was in relation to the actions of motorists in the borough and the income had been used to help fund freedom passes and other services. The Cabinet Member for Environment, Transport & Regeneration (non-voting – Job Share) noted there had also been an increase in income from parking suspensions when parking bays were suspended to enable utility works to take place. Furthermore, the Cabinet Member for Environment, Transport & Regeneration (non-voting – Job Share) informed Members that a number of residents were requesting additional parking enforcement across the borough which were being considered.

The Cabinet Member for Finance & Resources informed Members that there had been a constant review of whether expenditure was capital or revenue; and as such when it was considered that a scheme was more transformational then the capital budget was used as opposed to the revenue budget.

Members were informed that there were contractual savings within the Veolia waste contract and that work was ongoing to ensure the service was delivered. It was further noted that reductions in the amount of waste going to landfill had been seen which would deliver further savings in landfill tax.