Agenda item

Councillor Andy Hull, Executive Member Finance and Performance was present and was also accompanied by Steve Key, Service Director Finance.

During consideration of the following items the following main points were made –

·         There was a projected overspend at the end of month 4, however it was hoped that this could be reduced or eliminated by the end of the financial year. However if there is an overspend this will be funded from one off contingency reserve in the first instance

·         There were overspends in Housing and Adult Social Services, due to the pressures of providing temporary accommodation and ongoing changes in the welfare support system

·         There is currently a forecast of £1.6m overspend in Environment and Regeneration for the reasons outlined in the report and corporate savings of £0.45m had been applied to the structural overspend, due to the Government shelving plans to introduce locally set licensing fees

·         It was noted that the HRA is forecast to break even over the financial year, however there is a need to look at the Government announcement of a 1% reduction in social rents would need to be looked at during the budget process

·         It is forecast that £114.6m of capital expenditure will be delivered by the end of the year 2015/16

·         Reference was made to the Chancellor’s statement concerning Business Rates retention by Council’s and the details were still not clear and details would need to be analysed, however it was felt that this would not make up for the loss of Government support grant and the timing of any introduction could mean that the Council still has to make substantial savings in the interim. Reference was made to the possibility of increases in the service charge in response to this and Councillor Hull stated that he would investigate this with Councillor Murray and the Director of Housing and Adult Social Services

·         In relation to no recourse to public funds there was likely to be additional financial pressures placed on the Council if they had to accommodate refugees from Syria and that the Government had stated that funding would only be available for one year. It was stated that if the refugees were orphans this would be extremely expensive for the Council and would be for a number of years however it was unclear at present how many refugees the Council would take. Councillor Hull indicated that the Leader was discussing with other London Councils and the Mayor the implications for Councils of taking refugees

·         In response to a question it was stated that there needed to established whether any refugees that had job skills that could be matched or training could be given to them to ease the financial burden on the Council. Councillor Hull responded that he would raise this matter with the Leader and Executive Member for Economic and Community Development

·         A Member stated that the Housing Scrutiny Committee were currently carrying out scrutiny reviews into the Capital Programme and Responsive repairs and there could be an opportunity for savings to be made that could assist any HRA shortfall

·         Reference was made to the increase in development management pre application fees and it was stated that this had been agreed by the Executive

·         A Member enquired whether the increase in the budget for temporary accommodation was a temporary or permanent one and if there should be extra budget provision if this were to be permanent. Councillor Hull indicated that he did not feel that there should be revisions to the budget at this stage as it is hoped that these overspends can be brought down but at some point in the future it may be necessary to look where temporary accommodation is provided as at present, unlike many other London Boroughs, families were being placed in temporary accommodation in London, rather than outside London

RESOLVED:

That the report be noted and that Councillor Hull investigate the points raised above in relation to skills of refugees and the issue of addressing a possible shortfall as a result of a reduction in social rents and respond thereon to the Committee