Agenda item

Revenue and Capital Budget Monitoring, Cash Limits and Virements - April 2019 to September 2019

This report presents the financial monitoring information for the Authority as a whole for the financial year 2019/20 to the end of September 2019.


Councillor Richard Samuel introduced the report by taking the Cabinet through the Executive summary of the report.


Revenue budget

The Revenue budget outturn was forecast to be £0.08m under budget, which was a favourable movement of £1.76m from Quarter 1.

Nevertheless, there continues to be further adverse movements in service revenue budgets; key areas of risk were additional demand in Children’s Services £0.84m, and £0.35m shortfall in income from the Councils Housing Delivery Vehicle.  The Children’s Services budget has a forecast £1.9m over budget position after 2019/20 budget rebasing; this was due to increases in specialist Health and Social Care placements. Also, Commercial Estate income has not increased in line with budgeted income levels due to a slowing down of high street retail income and fewer acquisition options creating a £1m budget pressure.  Across all portfolios the forecast over budget position excluding corporate budgets was £2.68m.


This adverse position has been mitigated by a £2.76m favourable forecast on the Councils Corporate Budgets largely attributable to an under budget position on capital financing from re-phasing of capital expenditure and lower that budgeted cost of capital from beneficial interest rates for borrowing.


Of the overall savings target for 2019/20 of £8.9m, £0.9m (10%) would not be delivered and would impact on the 2020/21 budget; £5.1m (57%) was forecast to be delivered by the year-end, and £2.9m (33%) has been delivered.  To provide mitigation to delays in delivering savings and over budget areas Directors have put cost reduction plans in place to minimise spend wherever possible, which would further improve the year-end position.  These would need to continue to be reviewed to ensure that the Council remains within the approved budget by the year-end.


Capital budget

The capital budget was currently showing an expected under budget position of £34.6m mainly due to re-phasing of Bath Quays, ACL/ADL loan drawdowns and Roman Baths Archway Project into future financial years to reflect revised project spend profiles.

Following a review of the Modern Library programme options for Central Bath, which were paused last year, it has been proposed not to proceed with the remodelling of the Podium site and closure of the existing one stop shop in Manvers Street due to financial viability.  The Modern Libraries project has saved £0.45m in recurring savings to date but the further £0.35m outlined in the Medium Term Financial Plan for 2020/21 would no longer be delivered and would be reflected in next year’s budget.  The Capital Programme would be adjusted as a result to remove the £3m allocated to the scheme.  Capital spend to date of £0.362m would revert to revenue and would be funded from the Capital Financing Reserve


Council Tax and Business Rates

The current forecast Council’s share of the year end Collection Fund position was:

  Council Tax – Surplus of £0.82m (2018/19 Surplus £0.69m)

  Business Rates – Surplus of £1.21m (2018/19 Surplus £0.76m)


Council Reserves

The current forecast revenue position would not require use of the Budget Contingency Reserve (which was set up to mitigate budget risk).  The Council’s reserve levels would continue to be monitored during the remainder of the financial year.


Councillor Richard Samuel thanked the officers who prepared the report


Councillor Richard Samuel moved the recommendations.


Councillor Dine Romero seconded the motion by saying that she was delighted that Public Libraries scheme would be abandoned.  Councillor Romero also thanked the officers who prepared the report.




RESOLVED (unanimously) that the Cabinet agreed to:


2.1 To note the 2019/20 forecast under budget of £0.08m (as at the end of

September 2019) and the recovery plan actions outlined in Appendix 1;

2.2 To note that Recovery Plans are in place and these will continually be

reviewed to ensure that the Council remains within the approved budget;

2.3 To approve the revenue virements listed for approval in Appendix 3(i) and to note those virements listed for information only;

2.4 To note the capital year-end forecast detailed in paragraph 3.14 of this report;

2.5 To note the changes in the capital programme including capital schemes that have been agreed for full approval under delegation listed in Appendix 4(i);

2.6 To approve the removal of £3.0m provisional capital scheme for Modern

Libraries relating the Podium re-modelling as an integrated Library and One

Stop Shop;

2.7 To note that the associated one-off revenue reversion costs of £0.362m of the Library scheme will be funded from the Capital Financing Reserve;

2.8 To note that the remaining savings target of £0.35m for the Modern Libraries programme will be removed as part of the 2020/21 revenue budget proposals.

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