Agenda item

Financial Monitoring Report 2018/19 - Quarter 1

To consider the report of the Director (NE) (reference 18/201) attached



The Cabinet considered a report by the Director (NE) (Reference 18/201) which provided an update on the Council’s financial position in relation to the revenue and capital budgets, grants, reserves and income collection for the period April to July 2018.  Members were advised that the majority of savings identified as part of the 2018/19 budget setting process (£2.1m) were being achieved but there were a small number of areas that still required addressing and these would continue to be monitored.  Currently, a year end surplus of £220k was expected which, whilst positive news, was primarily a result of one-off savings, specifically business rates refunds relating to the Council’s off-street carparks.  The report assumed that the draw from the General Fund (£200k) that was required to balance the budget would still occur.  The report sought approval to allocate £21k of Section 106 monies to essential improvements at White Lees Play area and to accept a £4k grant from the NYCC Locality Budget towards the Yorkshire Coast Remembers project.  In relation to the retention of business rates, the Council was seeking to participate in the 75% Business Rates Pilot.  As part of this potential application, discussions had taken place with other members of the North Yorkshire Business Rates pool together with Harrogate Borough Council (which was part of the Leeds City Region pool), Selby and East Riding.  As part of this decision, the Council must also take into account what would happen if the application were unsuccessful and the effect that that might have on the existing north Yorkshire Business Rates Pool members.  Given the imminent deadline for applications, delegated authority was sought to enter into the scheme should the application be successful.

RESOLVED that the Cabinet:

i)             Note the report and in particular that:


·         Despite the setting of an extremely challenging budget a year end surplus of £220k is currently expected to be achieved;

·         The surplus is primarily driven by one-off savings specifically in relation to business rates refunds

·         The majority of income targets are being achieved;

·         The majority of savings identified as part of the 2018/19 budget setting process are being achieved but there are a small number of areas that still require addressing (including some perpetual under achieved budgets).  These will continue to be monitored.

·         The capital programme continues to operate within the overall parameters set in terms of contingency levels;


ii)         Note that a separate report on the Cabinet agenda (ref 18/195) proposes that Full Council be asked to consider utilising £150k of the anticipated surplus to fund the 2019 Tour de Yorkshire;


iii)       Approve acceptance of the following grants:


·         £4k from the NYCC Locality Budget towards the Yorkshire Coast Remembers project.

iv)       Approve allocation of £20,548 of Section 106 monies in order to make essential improvements to White Leys Play Area.


v)         Note that the Council is reviewing options to submit an application to become part of a 75% Business Rates Pool Pilot in 2019/20 alongside North Yorkshire County Council, East Riding of Yorkshire Council, Hambleton District Council, Craven District Council, Selby District Council, Richmondshire District Council and Ryedale District Council and potentially Harrogate District Council;


vi)       Delegate the authority for participating in the 75% Business Rates Pilot  application, and entering into the scheme should the application be successful, to the Section 151 Officer in conjunction with the Portfolio Holder for Corporate Investment.



To provide information relating to the Council’s financial performance for the 2018/19 year.


To maximise the Council’s income from the Business Rates Retention scheme.


Supporting documents: