Issue - meetings

The report sets out the latest position on the Budget Review 2017/18 and the proposed changes to the Medium Term Financial Plan in the light of the Strategic Review and other emerging issues. The Value for Money and Customer Service O&S Committee considered the Financial Plan at its meeting on 26 June and its comments are included in this report. The 2017/18 budget will continue to be reviewed during the year, particularly if any changes are made to the Corporate Plan later in the year and if the new Government make announcements affecting Waverley’s finances.

Recommendation

It is recommended that the Executive:

1.         notes the interim budget review process set out in this report and asks officers to report further changes to Members following the review of the Corporate Plan and priorities;

2.         approves the updated Medium Term Financial Plan document as attached at Annexe 1;

3.         agrees to set up a cross-cutting efficiency group that develops a programme of efficiency reviews and monitors their delivery, overseen by the Strategic Director of Finance and Resources and the Portfolio Holder for Finance;

4.         agrees the working assumption of a cap in the annual revenue contribution to the General Fund capital programme of £0.9m;

5.         agrees to the implementation of a new, more rigorous bidding and monitoring process for General Fund Capital Schemes, as set out in paragraph 4;

6.         approves the transfer of an amount equivalent to the New Homes Bonus funding from the General Fund revenue budget each year to the Investment Fund;

7.         notes the HRA capital reserves set out in Annexe 5 and asks the Housing Delivery Board to identify additional capital projects in the next 4-years up to the value of £8m and report back to Council for approval;

8.         recommends to the Council that the revised HRA new homes capital programme as set out in Annexe 6 be approved; and

9.         asks officers to make arrangements for a series of budget awareness sessions for councillors, to take place in the early Autumn.

26.1    The Executive considered a report setting out the latest position on the Budget Review 2017/18 and the proposed changes to the Medium Term Financial Plan in the light of the Strategic Review and other emerging issues. The Customer Service and Value for Money O&S Committee considered the Financial Plan at its meeting on 26 June and its comments were provided in the report.  The 2017/18 budget will continue to be reviewed during the year, particularly if any changes are made to the Corporate Plan later in the year and if the new Government make announcements affecting Waverley’s finances.

26.2    The Executive RESOLVED that

1.         the interim budget review process set out in this report be noted and asked officers to report further changes to Members following the review of the Corporate Plan and priorities;

2.         the updated Medium Term Financial Plan document be approved, as attached at Annexe 1;

3.         a cross-cutting efficiency group be set up that develops a programme of efficiency reviews and monitors their delivery, overseen by the Strategic Director of Finance and Resources and the Portfolio Holder for Finance;

4.         the working assumption of a cap in the annual revenue contribution to the General Fund capital programme of £0.9m be agreed;

5.         the implementation of a new, more rigorous bidding and monitoring process for General Fund Capital Schemes be agreed, as set out in paragraph 4;

6.         the transfer of an amount equivalent to the New Homes Bonus funding from the General Fund revenue budget each year to the Investment Fund be approved;

7.         the HRA capital reserves set out in Annexe 5 be noted and the Housing Delivery Board be asked to identify additional capital projects in the next 4-years up to the value of £8m and report back to Council for approval; and

8.         officers be asked to make arrangements for a series of budget awareness sessions for councillors, to take place in the early Autumn.

26.3    The Housing Revenue Account was subject to a comprehensive review during 2016 which resulted in a realignment of revenue and capital budgets and funding to meet current demands, this was approved by Council in February 2017. The financial outturn position in 2016/2017 was positive with a relatively small overall underspend against the £30m budget.

26.4    The New Homes and Stock Remodelling capital programmes were the subject of a significant amount of rescheduling in the last few years, particularly in 2016/2017, mainly due to budgets not being profiled across years accurately and start on sites on some large schemes being delayed.  This budget review process has led to a revised capital programme being prepared which is more realistic and deliverable and this is included at Annexe 1 for approval.

26.5    The Executive therefore

RECOMMENDS that

8.         the revised HRA new homes capital programme as set out in Annexe 1 be approved.

[Reason: to receive the latest position on the budget review for 2017/2018 and the changes to the medium term financial plan]