Agenda item

REPORT OF THE STRATEGIC DIRECTOR OF FINANCE, POLICY AND GOVERNANCE

To consider the Revenue Budget Outturn 2016/17.

RESOLVED:  That the Revenue Budget Outturn 2016/17 be noted.

REASON FOR DECISION:  To provide an opportunity for the Committee to comment as appropriate on the Revenue Budget Outturn 2016/17.

The Accountancy Manager presented the report of the Strategic Director of Finance, Policy and Governance in respect of the Revenue Budget Outturn 2016/17, and advised that the report was before this Committee for consideration prior to presentation to Cabinet on 13 June 2017.

The Accountancy Manager advised that the final Revenue Budget outturn for 2016/17 was £15.974million.  This represented an underspend of £1.294million against the working budget of £17.268million.

The Accountancy Manager commented that Table 2 of the report listed the most significant variances.  One of the most significant related to the Vacancy Control savings target, which had been overachieved due to the introduction of alternative options for service delivery.

The Accountancy Manager explained that a further £255,000 of the underspend had been carried forward into 2017/18 which, together with the underspend reported for the third quarter of 2016/17, resulted in a total carry forward figure of £642,000.

The Accountancy Manager stated that the efficiency target of £357,000 agreed by the Council in February 2016 had been overachieved by £43,000, primarily due to additional income generated by the Legal Services Team.

The Accountancy Manager advised that NHDC had remained in the Hertfordshire Business Rate pool for 2016/17, with the expectation that this would reduce the levy amount required.  This was the case in 2016/17, with the Council benefiting from a pooling gain of £154,000in the form of a reduced levy contribution, with the calculated levy reduced from a total of £239,000 to £85,000.

The Accountancy Manager commented that, at the end of 2016/17, the Council had retained a total of £3.227million of Business Rates income, £819,000 more than had been projected to this point.  This had been primarily due to the Council’s Business Rates Collection Fund benefiting from a change in the discretionary reliefs issued.  In 2015/16, NHDC had issued retail reliefs worth £760,000.  Any compensation received from Central Government for this relief would be posted to the General Fund and transferred to an earmarked reserve to fund the payment of the deficit on the Collection Fund.  The equivalent retail relief issued in 2016/17, however, reduced to £16,000 due to a change in the national scheme.  This reduction in relief issued therefore increased the level of Business Rates income in the Collection Fund and contributed to increasing the amount that the Council retained.

The Accountancy Manager referred to Table 5 in the report, which showed a General Fund balance at 31 March 2017 of £8.235million, higher than projected.  The Council had a number of earmarked reserves which could be used to fund revenue expenditure.  These were detailed in Table 6 of the report.  A total of £1.160million had been contributed to the reserves in 2015/16, and a total of £1.156million had been used to fund expenditure.  Cabinet was to be asked to recommend to Council that the net contribution to reserves of £4,000 be approved, which would leave a total balance in earmarked reserves at 31 March 2017 of £4.609million.

RESOLVED:  That the Revenue Budget Outturn 2016/17 be noted.

REASON FOR DECISION:  To provide an opportunity for the Committee to comment as appropriate on the Revenue Budget Outturn 2016/17.