Agenda item

The Committee noted a report of the Corporate Director, Resources which provided details of the final outturn for both the General Fund and the Housing Revenue Account for 2012/13 including the Annual Treasury Management Review (for copy see file of Minutes).

Councillor Temple asked questions about the total loss to the Council from Premier Waste, the implications for the future on £10m of capital receipts and commented about goalposts shifting regarding the reserves policy increasing as the net revenue expenditure was falling.

The Corporate Director, Resources explained that the Council had agreed to put in further concessions in relation to premier Waste as there would be significant problems if the company went into liquidation.  He informed the Committee that all creditors had signed up to a company voluntary arrangement (CVA).  In relation to capital receipts the Corporate Director explained that the market was very flat and £10m was a prudent target. £8m had been delivered and even though short of the forecast no problems had been encountered.  With regards to the comment made about general reserves it was explained that the Council had taken a prudent approach.

Councillor Temple said that part of the pressures in earmarked reserves were making reductions too early and there had been a marked rise over the last 3 years on total reserves.  The Corporate Director advised the cash limit of £20m earmarked reserves would be spent and service groupings cash limit reserves were reasonable given the continued period of austerity going forward and this approach  has worked well as any service groupings overspends are smoothed out through the cash limit reserve.  He added that decisions are taken throughout the year to smooth the way forward in the short term to get the base budget in line.

Resolved:

That the report is noted.