Issue - meetings

Officer: Lisa Taylor

Key decision: no

The Leader of the Council delegated authority to the Cabinet to make the following decisions.

RESOLVED:

1.    Note the current revenue outturn forecast at the end of the third quarter of 2018/19 of £2.8m, this is before exceptional items of £2.666m, resulting in a total overspend of £5.466m. If the £5.466m is not reduced by the end of the year up to £5.5m will need to be drawn down from earmarked reserves in 2018/19.  Reserves will then be replenished reserves in 2019/20 from the anticipated collection fund surplus and dividend payable to the Council by Brick by Brick, which forms part of the draft 2019/20 budget.

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 £1.87m forecast underspend against budget.

4.    Note the capital outturn projection of £373.316m, forecast to be an underspend of £74.684m against budget.

The Cabinet Member for Finance & Resources introduced the report, noting that the total overspend of £5.466m was due to the budget pressures experienced by the council, in particular with regard to social care pressures. However, the council continued to have a tight grip on its finances as investment continued in the borough.

In response to Member questions the Cabinet Member stated that in 2017/18 the parking team had been very prudent in calculating anticipated parking charges, and as such had massively underestimated the projected income; however officers were confident that the budget had now been corrected. The Cabinet Member for Environment, Transport & Regeneration (non-voting – Job Share) further confirmed that officers did not go out looking to fine people and half of fines were given to those who did not live within in the borough. Members also noted that additional income was received due to the expansion of Controlled Parking Zones in the borough.

The Cabinet Member for Finance & Resources noted that the council’s ability to forecast trends, particularly in relation to adult and children’s social care, had improved. However it was recognised that there had been some underestimates in the level of demand but it was felt that it was improving which was enabling the council to budget more effectively, barring external factors such as the underfunding of Unaccompanied Asylum Seekers.

The Cabinet Member for Children, Young People & Learning welcomed the budget, noting that borrowing was taking place for the right reasons to provide stable and safe homes and education facilities for young people.

The Leader of the Council delegated authority to the Cabinet to make the following decisions.

RESOLVED:

1.    Note the current revenue outturn forecast at the end of the third quarter of 2018/19 of £2.8m, this is before exceptional items of £2.666m, resulting in a total overspend of £5.466m. If the £5.466m is not reduced by the end of the year up to £5.5m will need to be drawn down from earmarked reserves in 2018/19.  Reserves will then be replenished reserves in 2019/20 from the anticipated collection fund surplus and dividend payable to the Council by Brick by Brick, which forms part of the draft 2019/20 budget.

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 £1.87m forecast underspend against budget.

4.    Note the capital outturn projection of £373.316m, forecast to be an underspend of £74.684m against budget.