Issue - meetings

(Report of Director of Finance and Transformation)

The report provided information on the Council’s key budget areas of salaries, major income streams and investment income.  It also gave an update on the approved variations to the revenue budget and areas identified through budget monitoring, summarised to provide an indicative overall budget position for the year which showed a net adverse variance of £34,050. 

An update was also given on capital expenditure and variations agreed in relation to the capital plan.

The improving position for the current financial year resulted from income streams performing above budget and negating the loss of recycling income following Aylesford Newsprint going into administration.  However, looking beyond the current financial year, attention was drawn to the potential outcome of the Spending Review 2015 and the consequential impact on local government funding.  It was acknowledged that there were serious challenges and choices facing the Council in meeting the funding gap.  It was noted that a report would be presented to the next meeting of the Cabinet updating the Medium Term Financial Strategy.

Following consideration by the Finance, Innovation and Property Advisory Board, the Cabinet Member for Finance, Innovation and Property resolved that:

The contents of the report be noted and endorsed.

Decision Notice D150070MEM

The report of the Director of Finance and Transformation provided information on the Council’s key budget areas of salaries, major income streams and investment income.  It also gave an update on the approved variations to the revenue budget and areas identified through budget monitoring, summarised to provide an indicative overall budget position for the year which showed a net adverse variance of £34,050.

An update was also given on capital expenditure and variations agreed in relation to the capital plan.

The improving position for the current financial year resulted from income streams performing above budget and negating the loss of recycling income following Aylesford Newsprint going into administration.  However, looking beyond the current financial year, attention was drawn to the potential outcome of the Spending Review 2015 and the consequential impact on local government funding. 

The Director of Finance and Transformation advised that the Medium Term Financial Strategy had recently been updated and a report would be presented to Cabinet on 7 October.  Following discussion regarding the New Homes Bonus and the financial stability of local authorities in general, it was acknowledged that there were serious challenges and choices facing the Council in meeting its funding gap.  The Director of Finance and Transformation indicated that benchmarking data might provide some guidance for councillors in assessing options and a Member suggested that a list of those services which the Council provided on a “discretionary” basis would be helpful in this regard.

RECOMMENDED:  That the contents of the report be noted and endorsed.