My report to Council

Posted By: Greg Couzens
Date Posted: 23/07/2009

Thank you Mr Mayor for the opportunity to report to the Council the latest developments on various matters relating to the finance Portfolio.


I am very pleased to advise that on the 29th June, Audit Committee approved for audit the Council’s Statement of Accounts and Annual Governance Statement for 2008/09. These reports are the culmination of many months of hard work by staff within the finance service which was recognised by members of the Committee. At the same meeting the Audit Commission reported on their Annual Audit and Inspection letter, noting in particular the improvement in the Councils performance in Financial Management and Internal Control.

On the 13th July Cabinet received the Outturn Report, setting out the overall financial position presented in the accounts. During 2008/09 the Council spent a total of £585m on day to day services, funded by a mix of income, grants and Council Tax. Residents funded £73m of these costs through the Council Tax. At closedown the net deficit on the budget amounted to £317k, a small improvement on the previous financial year and testimony to how hard services have worked to contain spend within budget during very difficult economic conditions.

The outlook going forward for 2009/10 remains financially very challenging. Financial risks are currently estimated to be over £8m. Our budget made a number of provisions to help support these pressures. Further work has been undertaken early in the financial year and during closedown to ensure we maximise the level of funding available to support these pressures. Taking these resources into account, the net budget pressure is currently forecast to be just over £3m. There is further potential to realise savings of over £1m from the 2009/10 pay award and the outcome of street lighting PFI.

There are risks that this funding may not materialise and it is likely that further pressures will arise as the financial year progresses. It is therefore very important that we manage expenditure within the budgets that have been set. Work is on-going with services to support strong financial management and develop viable options for delivering services within the available level of resources. The experience of the last financial year demonstrates that this is achievable and I will be working with the finance service to support services in their efforts to do this.

Gregory Couzens