Agenda item

Click here to view a recording of this item on You Tube

The Financial Services Manager explained that the attached report would be presented to Cabinet on 1 August 2023.  The report set out in summary the revenue outturn for 2022/2023 for the Council.  The Panel was informed that the report showed details of the major differences between actual costs/income compared to the revised estimates for 2022/2023 reported in the January 2023 financial monitoring.

The key issues set out in the report were outlined. 

Councillor Long congratulated the Finance Team on the budget process identifying additional money to be transferred to reserves which was welcomed to be utilised in the best possible way to benefit the residents of West Norfolk.

Councillor Lintern stated that it was great to have services come in under budget, but added what was the use money in reserves where many services were not fulfilled and referred to issues, particularly fly-tipping.  The Council should therefore not be congratulated when the services were not as good as they should be.

Councillor Long provided an overview of the very efficient and prompt time taken to clean up fly tipping incidents once they had been reported and that the performance indicators had reported that the service had been in the top quartile.

Councillor Dickinson commented that the information missing from the list of reserves that she would like to see, was whether they were new or adding to existing ones and would have like to have seen the details in the report.

In response, the Financial Services Manager explained that the reserves in appendix 2 were all existing reserves, and the some of the uses may be additional to or variations to the existing specific activities, but all are assigned to a reserve that aligns to the purpose for which the reserves is set aside for.

The Portfolio Holder for Finance explained that he had included in his Council report the appreciation of the performance of the previous Administration and giving the new Administration a bonus by transferring £1.8m  to reserves.  The Portfolio Holder added that it was the objective of the current Administration to run quality services in a cost effective way.

Following comments from Councillor Devulapalli on the level of and increasing reserves over the minimum required. The Financial Services Manager explained that it had been an unsettled few years due to a number of factors and .to come in under budget was prudent and from a Finance Officer’s  perspective was satisfactory.  It was noted  that there was still uncertainly going forward due to a number of factors typically described under the heading of, cost of living, but from a technical point of view it was around inflation, particularly, in terms of providing services and the cost of providing those services so there would be continuing uncertainty.  Across the country there was no prescribed manner for determining what the minimum level of reserves should be. Full Council agreed the authority’s level of minimum level of reserves. The current methodology was advised to Members prior to the Pandemic when there had been a number of years of stability, the Council had  come through a turbulent  time and now might the time to review methodology for setting the minimum level of reserves. But that would need to be a debate and there is no prescribed solution of what methodology or limit is deemed adequate.

The Chair commented that during the last 4 years it had been volatile for all in West Norfolk due to a number of factors.  The fact was that the outturn report for last year showed £500,000 predicted to go into reserves but because officers were conservative in what grants might be forthcoming, what the impacts of volatility were, the Council ended up £1.4m going in and services were delivered on top of additional services which had to be delivered in response to Covid, etc.  It was noted that there were many other Administrations continuing or New Administrations who would be grateful for a balanced funded position.

RESOLVED:  That the Corporate Performance Panel supported the recommendation to Cabinet as set out below:

That Cabinet approves:

1)    The draft revenue outturn position for 2022/2023 (section 2).

2)    Review and agree the new transfers to reserves as listed at Appendix 2.

3)    Review and agree the amendments to the Earmarked Reserves Policy (Section 4).

4)    Agree to extend the Councillors Community Grant Scheme for 2023/2024.