Lead Member – Mr Mike Owen, Portfolio Holder for Finance, Resources and Support.

Report of the Head of Finance, Governance and Assurance (Section 151 Officer) is attached marked 7.

Contact: James Walton (01743 255011)

(a)   That it be noted that the outturn for the Revenue Budget for 2013/14 was an underspend of £0.390m, this represented 0.06% of the original gross budget of £639m.

(b)  That it be noted that the level of general balance stood at £14.497m, which was above the anticipated level included within the Financial Strategy.

(c)  That it be noted that the level of school balances stood at £5.855m (2012/13 £4.953m).

(d)  That it be noted that the Outturn for the Housing Revenue Account for 2013/14 was an underspend of £1.426m and the level of the Housing Revenue Account reserve stood at £2.542m (2012/13 £1.041m).

7.1       The  Portfolio Holder for Resources, Finance and Support presented a report by the Head of Finance, Governance and Assurance (Section 151 Officer) – copy attached to the signed minutes – which provided details of the revenue outturn position for Shropshire Council for 2013/14.  A summary was provided of: the outturn for each service area with a commentary on the main variations and an outline of how the position since Period 11; the movements in the Council’s general balance; and the Council’s reserves and provisions.  The Council’s financial position for 2013/14 had improved by £0.978m when compared to projections made at Period 11 which had resulted in a net overspend of £0.390m.  The Leader expressed his appreciation of the efforts and hard work of the officers in achieving these results and asked the Head of Finance, Governance and Assurance to pass Cabinet’s thanks on to the team.

7.2       During the ensuing discussion a Member sought the comments of the Leader in response to a section of public opinion which felt the Council was making too many savings given the net overspend in 2013/14 and the amount being held in reserves.  In reply the Leader referred to the financial challenges facing the authority over the next few years, particularly in relation to securing savings of £40m in 2014/15, and requested the Member and her Group come forward with some suggestions of their own in this regard and highlighted that they had not taken the opportunity to do so at the February budget meeting.  He also commented that the Council was acting prudently given the need to make savings of £80m in the next three years and the Council’s reserves were low in comparison to those held by other authorities across the country.

7.3       A Member also requested information on the current position of job losses at the end of the year and sought projections for further losses in terms of compulsory redundancies to be made in the near future.  In response the Leader referred to reduced unemployment levels in the county and commented that this fall was continuing despite the position at the Council with many of those staff leaving the authority subsequently creating or securing new employment.

7.4       RESOLVED:

(a)  That it be noted that the outturn for the Revenue Budget for 2013/14 was an underspend of £0.390m, this represented 0.06% of the original gross budget of £639m.

(b)  That it be noted that the level of general balance stood at £14.497m, which was above the anticipated level included within the Financial Strategy.

(c)  That it be noted that the level of school balances stood at £5.855m (2012/13 £4.953m).

(d)  That it be noted that the Outturn for the Housing Revenue Account for 2013/14 was an underspend of £1.426m and the level of the Housing Revenue Account reserve stood at £2.542m (2012/13 £1.041m).