Agenda item

Financial Monitoring - Revenue

Minutes:

The Interim Director of Finance provided an update on the revenue position for 2012/2013 as at Month 8 (November 2012). The projected revenue forecast for the year showed a potential General Fund overspend of £7.7m, down £1m from the M7 projection, which was due largely to a reduced projected overspend in the Children and Young People Department, plus a number of other departmental variations. His report also prioritised the risks for ongoing management actions, to ensure no overspend at the year-end.

 

The Chair was pleased that the level of overspend had reduced but noted that the situation remained critical, given there were a number of anticipated adverse changes which would increase the projected overspend in the coming months, including the outcome of the social services care home fees consultation and issues related to debt recovery (see minute 169 post). He commented also that clear guidance was awaited from the Government in relation to various issues including capitalisation, and a further meeting to clarify matters was due to take place with civil servants. A significant amount of work was also being undertaken in relation to budget options and he referred to the ongoing ‘What Really Matters’ consultation that was due to end on 31 January, which would be reported to Budget Cabinet on 18 February 2013.

 

On a motion by Councillor P Davies and seconded by Councillor McLachlan, it was –

 

Resolved –

 

(1)  That Cabinet notes that:

 

(a)  at Month 8 (November 2012), the full-year forecast projected a General Fund overspend of £7.7m;

(b)  there were no rejected freeze items in the month;

(c)  a major risk has just recently emerged considering the reliability of fees and charges income, going back many years. Corrective action is being taken to maximise recovery and as better information becomes available, there will be further reports regarding this serious matter.

 

(2)  That Cabinet believes that the Government’s austerity policy is proving to be profoundly unfair. Authorities with the highest levels of poverty and deprivation are facing the biggest cuts and at the same time, wealthy areas with the lowest levels of poverty pay less.

 

(3)  Cabinet notes that Wirral is losing £151 per head in cuts. Liverpool is losing £252, Manchester is losing £209, Newcastle is losing £162, Birmingham is losing £166, and Sheffield is losing £140 per head.

 

(4)  Cabinet notes that Milton Keynes is losing just £38 per head. Central Bedfordshire is losing £18 per head. And people in North Dorset are losing just £2 per head.

 

(5)  Cabinet also notes that a recent report by SIGOMA (Special Interest Group of Metropolitan Authorities outside London) indicates that out of the 47 SIGOMA authorities Wirral has had the largest cut in its funding from central government (2.62% cut in revenue spending power 2013-2014). This compares with the SIGOMA average of -1.78% and the average for Shire Districts of -1.37%.

 

(6)  Cabinet supports the ‘Come Together’ Campaign launched by the Mayor of Liverpool on 18 January when the Leaders of Core Cities, Merseyside Districts and Faith Leaders met to discuss the impact of the Government’s austerity policy.

 

(7)  Cabinet supports the on-line petition which has been launched at www.come-together.co.uk. This calls on the Government to urgently re-think its policy and to apply the cuts more fairly across the country, protecting those most in need, and making sure those in wealthy parts of the country pay their fare share. We urge all residents to sign this petition.

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