Agenda item

To receive the report of the Cabinet Member for Performance and Resources informing Members of the final Council position against agreed budgets for the 2017/18 financial year.

66.1    The Chair welcomed Councillor Norman, Cabinet Member for Performance and Resources, the Head of Policy and Resources and the Accountancy Manager.

66.2    Councillor Norman provided an overview of the Financial Outturn report for 2017/18. The Committee were informed that the figures show an in year improvement quarter on quarter, with an improvement of £300,000 from quarter one.

66.3    Councillor Norman advised that £1.8m of savings were achieved in 2017/18 and those savings that had not been achieved would be added to the current year’s target. He commended the Finance Team for their advice and guidance which has ensured the Council’s financial situation continues to improve.

66.4    Councillor Hilton noted that there had been a slight improvement in Outturn for the year. However it appeared this was mainly due to corporate funding received from Kings Walk. He asked whether without this money the Council financials would be in worse position.

66.5    Councillor Norman replied that the Council was not solely funded by corporate income and the Council use all revenue streams wisely.

66.6    The Accountancy Manager stated the £15 million from Kings Walk was not being used to replenish this year’s accounts and has resulted in £250,000 income from interest. This money meant that the Council was able to safely invest which is beneficial in the long term.

66.7    Councillor Wilson enquired whether all staff are charged in full to the service area they predominately work in. He noted a previous statement from Councillor Noakes who stated that staff were being charged to her portfolio when they only carry out a small amount of work for Culture and Leisure.

66.8    The Accountancy Manager replied that a section was included in the report that stated staff times are not split across areas, that some Officers will carry out work for other sectors within the Council and the Budget reflects this.

66.9    Councillor Wilson noted that the cost for providing the Housing Subsidy had resulted in an overspend of £252,000 in the last quarter. He queried whether this would mean there would be an overspend of excess of £1 million in the coming year. He also stated that all of the portfolios have seen an increase in bad debt.

66.10 The Head of Policy and Resources replied that the increase in Housing Subsidy had resulted from the change to Universal Credit and the 2018/19 Budget would reflect this change. It was only a small negative swing in the last quarter therefore it only differed slightly from the year-end target.

66.11 The Accountancy Manager stated that there had not been an increase in bad debt, simply some debt had aged without collection.

66.12 Councillor Pullen thanked Councillor Norman for his report and honesty. He questioned whether it was beneficial to keep rolling over the debt from previous years and if there was a better solution.

66.13 In reply Councillor Norman agreed with Councillor Pullen and stated that the Cabinet were planning to introduce long term portfolio budgets in the coming year to rectify this problem.

66.14 The Head of Policy and Resources stated that detailed work is taking place with Services Heads regarding this issue and that he will have more information in the coming months.

66.15 In response to Councillor Haigh regarding Aspire repairs costs not being charged to the Capital Budget, the Accountancy Manager stated that repairs cannot be capitalised.

66.16 Councillor Haigh further questioned why the planning income had fallen short of forecast levels.

66.17 The Head of Policy and Resources replied that planning had substantial temporary staff this year which affected the budget and that detailed work is being carried out in this area to ensure this shortfall does not reoccur. The Accountancy Manager added that planning was a difficult area to forecast due to the variation in frequency of planning applications.

66.18 In response from a query from Councillor Morgan regarding how the Council is going to maximise planning income, the Head of Policy and Resources stated that the planning department’s new structure would ensure costs would be reduced for staffing and the department are carrying out work in relation to realistic income targets.

66.19 The Chair welcomed Councillor Cook, Cabinet Member for Environment and the Corporate Director.

66.20 Councillor Cook presented a briefing regarding the year outturn for his portfolio. It was noted that the income from the recycling service was down from the amount previously forecast. He stated this was due to Amey’s failure to obtain market average prices and a portion of the incoming recycling not being sold on by Amey. 

66.21 The Committee was informed that the quarterly report regarding recycling stated that the recycling markets were good despite concerns relating to the Chinese market as the majority of Gloucester’s recycling is sold within the UK and Europe.

66.22 The Members welcomed the report from Councillor Cook.

66.23 The Spokesperson thanked Councillor Cook for his report. He stated that this was an issue that should be brought back to the Committee when there is more information available.

66.24 The Chair welcomed Councillor Noakes, Cabinet Member for Culture and Leisure, the Corporate Director and the Head of Culture and Trading Service.

66.25 In relation to the overspend in this portfolio, the Committee were informed that two of the museums and the Guildhall operate from elderly buildings that are expensive to maintain. The building work outside of Blackfriars had an impact on the income from this venue and The Tourist Information Centre has seen a decrease in income due to coach and tour operators are selling tickets through online stores.

66.26 Councillor Noakes stated new staff appointments will provide guidance and leadership for the coming year. However, the impact of these appointments on the budget had not been as quick as expected.

66.27 It was noted there are new projects in the forthcoming year that will save resources. In particular, the proposed TIC move, the transfer of the ownership of the Gloucester Life Museum building and new food and drink project regarding the Arbour. Councillor Noakes stated the bid for Gloucester to become City of Culture 2025 is still a main objective.

66.28 Councillor Hilton thanked the Cabinet Member for her report. He noted that the Culture and Leisure portfolio had significant overspend compared to other portfolios. He enquired whether the budget for this portfolio was unrealistic.

66.29 Councillor Noakes replied that throughout the portfolio everything was being done to create realistic targets. She commented that staff met regularly to investigate where they could make improvements and that the figures would be better in the coming year.

66.30 The Corporate Director stated that Culture and Leisure is a difficult area to predict figures and there have been circumstances out of the Council’s control which had resulted in an overspend. He noted that it was not necessarily a service overspend, rather a decrease in income in some areas.

66.31 It was noted that the targets for Culture and Leisure had been set in exceptionally good years for the portfolio which were hard to reach in years when there were no large events taking place.

66.32 In response to a query from Councillor Pullen regarding the benefits of moving the TIC to another venue, the Head of Culture and Trading Services stated that they were currently looking to both the Museum and Guildhall as possible venues. It would be beneficial for the Guildhall to incorporate the TIC as it would increase footfall to the Café and would be able to have the same staff promoting both TIC and Guildhall events.

66.33 Councillor Morgan shared his view that it would be beneficial for a third party to take on the Life Museum to save money.

66.34  In response Councillor Noakes shared the proposal for the Gloucester Historic Buildings Company Limited to take control of the Life Museum. This would ensure the collection is kept. She stated that there were upcoming talks regarding the transfer.

66.35 Councillor Haigh shared her view that the low TIC footfall is a reoccurring problem that will not be solved by moving to the Guildhall. She also stated that the Guildhall has accessibility issued that would need to be rectified before the move could take place.

66.36 The Chair noted that it would be beneficial for the TIC move proposals to be brought before the Committee.

RESOLVED: - (1) That the proposals for the TIC move be brought before the Committee and, (2) the Financial Outturn 2017/18 report be noted.