To approve proposed changes to earmarked reserves following the annual review.

The cabinet member finance and corporate services introduced the report and highlighted that the review was as a result of the LGA peer challenge which had suggested a strategic review of finances.   The medium term finance strategy and corporate plan reviews were both scheduled for 2019/20. 

It was noted that there was one recommendation with a number of reserve movements.     Some of the reserve movements would require a business case, in particular the capital reserves.

The group leader for It’s OUR County commented that some of the reserves were refunding service changes which did not occur in year.   It was further commented that it was difficult to have faith in the children’s wellbeing directorate savings.   The party did not agree with the reduction of £1.1m in the minimum revenue provision and had concerns over the reduction in the sparsity reserve.    It was noted that the new reserve to support community health and wellbeing requirements was welcomed.    

Following a request for confirmation that the level of reserves were prudent and followed CIPFA guidelines, the S151 officer confirmed that he was comfortable with the levels of general and earmarked reserves and that they were CIPFA compliant. 

RESOLVED

That:

(a)       the following movements re earmarked reserves be approved:

·        the sparsity reserve be reduced by £6.4m

·        the minimum revenue provision reserve be reduced by £1.1m

·        the severe weather reserve be increased by £1.4m

·        a new reserve of £1.6m established to support structural change in children’s wellbeing

·        a new reserve of £0.5m established to support providing care costs in Adults and Wellbeing

·        a new reserve of £2.8m established to support remedial road works

·        a new reserve of £0.5m established to meet any future liabilities re living wage claims

·        a new reserve of £0.5m established to support the community health and wellbeing requirements

·        legal services demand, £0.2m