Issue - meetings

A report providing Members with information on the provisional year end for General Fund services for 2023/24 and the subsequent implications on the Council’s balances and reserves.

Cabinet

1)    NOTED the provisional year end position, variations to the 2023-24 approved budget and the resultant effect on the Council’s balances and reserves for General and Special Expenses and revenue and capital;

2)    Subject to final confirmation from Government, APPROVED the re-purposing of the £2m Levelling Up Fund (LUF) grant from the theatre to the Stockyard project to fund improvements to the existing trader hall and associated infrastructure in support of an enhanced cultural offer;

3)    INCREASED the current £11m in the capital programme for the stockyard project to £13m, the additional £2m being fully funded through the LUF grant;

4)    APPROVED submission of a planning application in relation to the required works.

Councillor Sarah Cox, Portfolio Holder for Corporate Finance, Property and Resources introduced the report, the purpose of which was to provide Members with information on the provisional year end for General Fund services for 2023/24 and the subsequent implications on the Council’s balances and reserves.

Councillor Cox advised that there was an underspend of £634k on General Expenses, leadings to an increased balance on the corporate priority reserves of £381k after allowing for carry forwards.  There were a number of significant variations both in under and over spends, particularly that relating to debt management, which had been a key focus following the previous Scrutiny review.  This focus has led to the write-off of unrecoverable debts and to a net reduction in bad debt provision, which had led to a saving of £25k.  However, the primary reason for the overall underspend was due to the receipt of non-recurring grant income and increased investment income.  It was therefore important that the Council remain financially prudent in its activities and spending plans.

Councillor Cox confirmed that there was an underspend of £50k on Special Expenses Melton Mowbray, which resulted in an increased position on the reserve of £16k, primarily due to less expenditure on play area maintenance, offset by reduced income at the cemetery.  Special Expenses would continue to be a challenge, in respect of the cemetery and the cost of future provision.  This needed to be considered by Members working on the future budgets for this fund.

Councillor Cox thanked budget holders and the Finance Team for their work to manage budgets, resulting in a positive outcome for the General Fund.

Councillor Cox moved the recommendations and the Leader seconded the motion.

The Leader highlighted that not drawing money down from reserves was a very sound decision, taking into account the global situation. On the outturn, there was an underspend on Member allowances of approximately £20k, due to having one less Portfolio Holder and having representatives sitting on various committees and receiving 1 allowance.  Since the college had withdrawn from the theatre project, the Council proposed that the £2m for use elsewhere for a similar project within Melton and we await the Government's decision on that.

During discussion the following points were noted:

·       There was disappointment that the theatre proposals were not progressing but it was important to retain the £2m funding within Melton.  It was noted that paragraph 4.4.4 of the report clearly set out the Council’s aspirations to use the £2m funding.

·       Cabinet efforts to reduce the spend on Member allowances etc had resulted in a saving of approximately £20k per year (£80k over the four years).

·       The Council had received cross party support from colleagues at Rutland County Council, concerning proposals for the use of the £2m being retained in Melton.

Cabinet

1)    NOTED the provisional year end position, variations to the 2023-24 approved budget and the resultant effect on the Council’s balances and reserves for General and Special Expenses and revenue and capital;

2)    Subject to final confirmation  ...  view the full minutes text for item 7