Agenda item

To receive the report of the head of finance.

Appendix E to follow

Simon Hewings, chief accountant introduced this item.  Also present to answer questions were Jane Murphy, Deputy Leader and cabinet member for finance, legal and democratic services and John Cotton, Leader and cabinet member for corporate strategy and strategic policy.

The committee considered the head of finance’s report on the revenue budget 2016/17 and the capital programme to 2020/21.  The report brought together the relevant information upon which Cabinet had recommended a budget and capital programme to Council on 18 February 2016.  Tabled at the meeting was appendix E setting out the prudential indicators for Cabinet’s recommendation to Council.  All councillors had been invited to a budget briefing in the previous week. 

The committee then discussed the report, asking questions of the cabinet members and officers and the following points were raised:

·         The anticipated savings from the corporate services project were the best estimates given that the contracts had not yet been signed.  However, given that the project had now been approved by all five councils, it was highly likely to proceed.  In fact, the financial risks to the council were greater should the contracts be awarded and a contractor subsequently default than if the contracts were not awarded.

·         Both the S151 officer and the cabinet were of the opinion that, on current projections, the budget was sustainable. However there was a huge amount of uncertainty about future funding.

·         Some underspends were due to greater than anticipated income being received rather than reduced expenditure;

·         A joint devolution funding bid for Oxfordshire had been submitted to the Government.

With regard to the revenue growth bid for the post of cabinet policy advisor, the Leader reported how this post would support the council’s key aims as set out in the council’s corporate plan and enhance service provision.

The committee noted the revenue budget 2016/17 and capital programme to 2020/21 which cabinet had recommended to council.