Agenda item

Joint Report of the Corporate Director of Regeneration and Economic Development and Corporate Director, Resources – Finance Manager, Resources.

The Chairman introduced the Finance Manager, Resources, Azhar Rafiq to speak to Members in relation to the Quarter 2 2015/16 Revenue and Capital Outturn (for copy see file of minutes).

The Finance Manager noted for the Quarter 2 2015/16 Forecast of Revenue and Capital Outturn the areas that were reported upon were the General Fund Revenue Account and the Capital Programme for the RED Service. 

Members noted the service was reporting a cash limit underspend of £0.632 million at Quarter 2 2015/16 against a revised annual General Fund Revenue Budget of £26.448 million.  Members noted the variances within the budget, with the detailed explanations as set out within the report.  The Committee were informed that the service grouping was on track to deliver against Medium Term Financial Plan (MTFP) savings for 2015/16 of £1.3 million.

The Committee were reminded that subsequent to the transfer of housing stock, a separate ring-fenced HRA was no longer required, although it was noted that there were some residual transactions reflecting a short period of activity in 2015/16.

As regards the Capital Programme 2015/16, the Finance Manager explained that the actual spend to date was reported as £9.617 million with the revised budget being £42.215 million.  Members noted a breakdown of the major capital projects in terms of 2015/16 were given at Appendix 2 to the report, noting 138 capital schemes being overseen by 25 Project Delivery Officers.

The Finance Manager noted issues from the previous year, including: ongoing security costs at a former school site; under-occupancy of business units; issues as regards a collapsed building at Bishop Auckland; and units at Millennium Place, those coming to market now.

The Chairman thanked the Finance Manager and asked Members for their questions on the Quarter 2 finance report.

Councillor A Patterson requested clarification as to what action was being undertaken in relation to security costs at Whinney Hill School and how was DCC increasing occupancy in rental units at Newgate and Bracken Hill.  The Finance Manager responded by saying that RED  colleagues were trying to get premises occupied and in relation to the School, the Council had an obligation to protect these empty premises whilst it worked with partners for an appropriate disposal solution.

Councillor Neil Foster, Portfolio Holder for Economic Development noted that Business Durham were working to offer incentives as regards business units, however, not offering reduced business rates as this did not encourage businesses to invest in properties.  It was reiterated that the units at Millennium Place were coming to market and new businesses were moving in at Bracken Hill.

Resolved:   

That the report be noted.