Decision details

Revenue Budget Outturn 2016-2017

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To provide matters relating to the year-end position against the revenue budget.

Decision:

1. That it be approved that the net surplus after taxation of £298,000 of Yoo Recruit Limited be retained by the company to enable further business development.

2. That the write off of 7 non-domestic rates totalling £192,133.08 as detailed in Appendix G to the report be approved.

3. That the write off of 2 housing benefit accounts totalling £14,662.89 as detailed in Appendix H to the report be approved.

4. That the write off of 4 council tax accounts totalling £23,104.94 as detailed in Appendix I to the report be approved.

5. That it be noted that the revenue outturn position for 2016-2017 for the General Fund; a net underspend of £266,000 (-0.12%) was achieved against the net budget requirement of £217.4 million, after meeting the net cost of redundancy and pension strain, after the use of capital receipt flexibility, and contributions to essential specific reserves.

6. That it be noted that, whilst the positive General Fund outturn position during 2016-2017 and the resulting adjustments to reserves will help to support the Council’s short term financial position, it does not address the challenging financial position that the Council finds itself in over the medium term; namely identifying an additional £20.5 million of budget reduction and income generation proposals over the two year period to 2019-2020. Cabinet were presented with a report at this meeting detailing the progress towards identifying £14.8 million of budget reduction and income generation proposals for 2018-2019.

7. That it be noted that a comprehensive review of all services will be undertaken following the positive 2016-2017 General Fund outturn position to identify any new budget reduction or income generation opportunities; Cabinet will be provided with an update on progress in the October 2017 budget report.

8. That it be noted that the General Fund outturn position takes into account a number of proposed transfers to and from reserves and provisions for which approval is sought in the Reserves, Provisions and Balances 2016-2017 report presented at this meeting.

9. That it be noted that approval is sought in the Reserves, Provisions and Balances 2016-2017 report presented at this meeting, to establish a Pension Deficit Recovery Reserve and to contribute £3.0 million from the General Fund revenue account during 2016-2017.

10. That it be noted that schools under the control of the City of Wolverhampton Council drew down a net £3.4 million of their reserves during 2016-2017, taking the total accumulated reserves to £8.5 million at 31 March 2017.

11. That it be noted that the Housing Revenue Account revenue outturn position for the year was a surplus before allocations of £19.3 million, compared to a budgeted surplus of £15.3 million.

12. That it be noted that the draft financial statements of Yoo Recruit Limited will be subject to external audit.

13. That it be noted that, as a result of recruitment through Yoo Recruit Limited, the Council has been able to avoid fees which would have otherwise have been incurred, including approximately £225,000 in relation to the permanent recruitment of individuals who had been previously employed on a temporary basis through the agency.

14.That it be noted that the Collection Fund outturned with a £3.3 million deficit during 2016-2017; this resulted in an overall deficit of £13.2 million to be carried forward. In 2014-2015, as a result of the adverse outturn against the Collection Fund, primarily owing to the impact of appeals against Business Rates, over which the Council has no control, Cabinet approved the establishment of a Business Rates Equalisation reserve to equalise the impact of appeals on the Council. In the Reserves, Provisions and Balances report presented to Cabinet at this meeting, approval is sought to bolster that reserve in 2016-2017 to support the Council over the medium term.

15.That it be noted that 92 non-domestic rates accounts totalling £1,082,357.82 have been approved for write off by the Director of Finance in accordance with the Council’s Financial Procedure Rules.

16.That it be noted that 1,457 council tax accounts totalling £342,913.88 have been approved for write off by the Director of Finance in accordance with the Council’s Financial Procedure Rules.

17.That it be noted that 46 sundry debt accounts totalling £45,559.95 have been approved for write off by the Director of Finance in accordance with the Council’s Financial Procedure Rules.

18.That it be noted that 67 housing benefit debt accounts totalling £15,150.70 have been approved for write off by the Director of Finance in accordance with the Council’s Financial Procedure Rules.

Report author: Claire Nye

Publication date: 20/07/2017

Date of decision: 19/07/2017

Decided at meeting: 19/07/2017 - Cabinet

Effective from: 26/07/2017

Accompanying Documents: