The chief financial officer presented the report, which sets out how the council delivered an underspend compared with budget. This includes significant improvements in Adults and Wellbeing spending compared with previous years when the Directorate had overspent.

Capital schemes of £78m have been delivered. The pension fund deficit has increased by £52m to £211m.   A revised payment profile will be agreed following the actuarial valuation in March 2016. An increase in reserves was reported.

Responding to the Independent group leader, the chief financial officer confirmed that the reported outcomes were satisfactory. In response to an observation by the Liberal Democrat group leader, the chief financial officer explained that the £6m loan in respect of the Energy from Waste scheme was included in the capital outturn, as PFI assets are now included in the council’s balance sheet. 

The leader of It’s Our County commended officers for this outturn and requested that in future reports more detail was included on the proportion of expenditure covered by capital grants per scheme. It was confirmed that this would be possible, and further clarified that there has been an increase in borrowing as some schemes are “spend to save”. In some cases, there are rental arrangements in lieu of debt repayments, which in revenue terms results in a saving. 

In response to a further question from the leader of It’s Our County regarding the projected rise in the financing requirements, it was confirmed that this was in relation to debts; borrowing will increase although this is mitigated by the plan to dispose of assets.  

RESOLVED THAT:

(a)  the financial outturn for 2014/15 be noted;

(b)  the movements in reserves be noted and approved; and

(c)  the treasury management outturn report be recommended to Council for approval.