To note and review the earmarked reserves held by the council.

The Cabinet member for Environment introduced the report in Councillor Stoddart’s absence.  The cabinet member highlighted the need to ensure prudent level of reserves, with earmarked reserves at £81.8m and a general fund balance of £9.6m, totalling £91.4m.  The council has a reserve balance of 52% of its net revenue budget.  Noted that the earmarked reserves balance has decreased since 31 March 2022 due to additional funding for Children and Young People’s services. 

No comments from Cabinet Members. 

Group leaders gave the views of their groups.  Concerned the report does not actually review the reserves and it is not clear if the reserves are adequate and prudent.  Noted consistency in titles of reserves would assist when comparing previous year’s reports, 

Queries were raised as to whether funding received back from ‘Fastershire’ will be used for the rural communities with poor internet access, what the length of contract is for the Whitecross PFI, whether the provision against the Whitecross PFI and adult social care discharge to assess are sufficient to meet need in these areas and what is the plan to replenish the financial resilience reserve.  Also, queried discrepancies in the figures reported for 31 March 2022 and 1 April 2022 and clarification was sought about whether the reserves are all needed, in particularly business rates risk reserve.

In response to the queries it was noted that the Scrutiny Management Board is reviewing the earmarked reserves report on 16 January 2024 and questions will be put to that committee regarding the resilience reserve, allocations of reserve and review of the reserves. Confirmed there wasn’t a discrepancy in the figures, it’s about where the amounts are allocated in the different areas. A written report will be provided that links the previous allocations of earmarked reserves to the one in the current report.  Confirmed that clarification regarding the length of contract for Whitecross PFI will be provided outside of the meeting.

It was unanimously resolved that;

(a)       The earmarked reserves and balances held by the council at 31 March 2023 are reviewed and confirmed as prudent to meet future financial commitments and risks