Issue - meetings

To provide a progress report on the Council’s overall financial performance against revenue and capital budgets for the 2016-17 financial year that were approved by Council on the 16th February 2016. The report focuses on significant variances to meeting the budget in 2016-17 in order to take timely actions to deliver a balanced position at year end.

1.         That the contents of the report and in particular the continuing seriousness of the General Fund financial position of £27.5m forecast outturn deficit, as at the end of September 2016 be noted.  This represents a net decrease to the deficit of £3.6m, being increases of £0.1m less decreases of £3.7m, from end of August forecast;

2.         That Cabinet where appropriate, continue to work with Officers in undertaking mitigating actions to bring the General Fund position closer to balance, in particular endorsing the actions to be led by the Interim Chief Executive, Interim Service Director: Finance and Strategic Leadership Team set out at paragraph 9;

3.         Agreed the following in relation to the Capital Programme:

a.         Approved the Capital Budget Proposed Adjustments of £1.6m in total, as detailed in paragraph 35 and Table 6 (to be reflected in the Period 7 report);

b.         Approved the movement in the Capital Programme of £1.1m being slippage from 2016/17 to 2017/18, as detailed in paragraph 34 and Appendix B;

c.         Approved in principle, that Energy related capital projects currently funded from grant of £1.3m, be transferred to prudential borrowing, increasing prudential borrowing in this financial year by up to £1.3m, at an estimated annual revenue cost of £81k, as outlined in section 14.2;

d.         To note the total net movement in the Capital Programme from £222.3m to £221.2m, being slippage from 2016/17 to 2017/18.

4.         That the mitigating action being taken to partially address the pressures in Care & Support, Adults of the re-provision of up to 10 beds currently at North Bristol Rehabilitation Centre in an alternative setting, as set out in 14.1 of this report be noted

5.         The outcome of  the initial review of the Minimum Revenue Provision (MRP) and potential reduction to the capital financing charge in 2016/17 of £4.3m, as detailed in paragraphs 9 and 42, and Appendix D, be noted and agreed that it be referred to Full Council for consideration on 13th December 2016;

6.         The review of the use of the new flexibilities on the use of Capital Receipts potentially releasing up to £5.3m from reserves, as detailed in paragraphs 9 and 30, and Appendix E, be noted and agreed that it be referred to Full Council for consideration on 13th December 2016.

(As a result of recommendation 3c, 5 and 6 being approved, and resources subsequently being released, the general fund forecast outturn deficit will reduce to £16.6m, as summarised in Table 1 of the report)