My Report to Council

Posted By: Greg Couzens
Date Posted: 15/01/2010

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 report that the Council has achieved a level 3 score from the Audit Commission’s assessment of how we manage our finances. This is a harder review of what we do financially as part of the new Use of Resources judgement and means that the Council is performing well in managing its finances. The commission noted the good quality of financial reporting and good areas of performance within budget monitoring. Our recommended area for improvement is to understanding better the costs of our services and how they compare with others. The financial work we plan to do as part of the cross cutting reviews will help us to do this and contribute to more informed decisions about the services we provide.

The financial position of the Council continues to be difficult in 2009/10. More detailed work is currently taking place with services to support an improvement in the forecast out-turn. A number of services have managed to put measures in place that are having a positive impact in reducing expenditure. It is vitally important that this work continues and I wish to formally thank services for the efforts they are taking to support the Council’s finances.

The 2010/11 budget proposals are nearing completion with final information on government funding expected in January. Our provisional settlement provides for an increase of 3.4% in formula grant. This is good news and in line with our budget forecast. The formal budget pressures process has resulted in recommendations for additional funding to support corporate and service budgets. This funding will make those budgets more robust and meet the underlying pressures experienced in the current financial year and going forward to 2010. This funding is being met by a substantial programme of efficiency savings and continuation of the freeze on non-essential expenditure. These measures send the right messages about the financial climate faced by all public sector services and will help the Council to manage necessary changes to our workforce and services.
The position in 2011/12 and going forward remains uncertain but what we can be sure of is that the financial position will get more difficult still. What we achieve next year will be a test of our ability to meet this challenge. I would like to offer my personal thanks to Ruth, all services and staff within finance that are working hard to help us do this.

Thank you Mr Mayor, I will be pleased to answer any questions from Members of the Council about these or any other matter relating to the Finance Portfolio.