To inform Cabinet of the revenue and capital outturn for 2013/14, including the Treasury Management outturn report.

The Chief Financial Officer presented a report informing the Cabinet of the revenue and capital outturn for 2013/14, including the Treasury Management Outturn report.

The following points were highlighted:

·                     Spending had been kept within budget with a small surplus. A saving of £13 million had been achieved. However, a savings of £33 million must be delivered in the next three years. This is achievable although challenging.  The expectation was to remain within budget.

·                     A target level of general reserves of 3% of net expenditure, £4.5m has been maintained and will be increased to allow for any slippage on savings plans.

·                     The total level of reserves was at £23 million, providing greater resilience and presenting a healthier balance sheet compared with some other local authorities.

·                     £43 million was spent on capital schemes in 2013/14 bringing benefits and value for money, such as for schools, roads, the Enterprise Zone, parking and infrastructure, plus smaller scale schemes.

·                     Debt was being repaid and was reducing. Investments in Spend to Save schemes were good decisions, for example, Halo Leisure, leading to future revenue savings. Long and short-term borrowing was balanced based on interest rate projections.

·                     It was a legal responsibility to balance spending. The council was in a position of making incremental savings, which was in contrast to health and education, making it easier to balance risks. Steps were being taken to build reserves for non-Academy schools.

·                     The pension deficit, related to past service, with debt of £160 million being repaid over 21 years.

·                     The council was in a more resilient position than many local authorities, because of good economic growth in the county, despite receiving lower levels of grants. There was confidence in delivering the budget this year.

RESOLVED THAT:

(a)          the financial outturn for 2013/14 be noted;

(b)          the movement to new reserves outlined in paragraph 12 of the report be approved; and

the Treasury Management outturn report be recommended to Council for approval.