Agenda item

Cabinet

RECOMMENDED THAT COUNCIL  

Approve:

(a)          The re-designation of the established Business Efficiency Reserve as the Transformation Reserve and that the sum of £3 million be appropriated from the unallocated General Fund Reserve to the Transformation Reserve to enable the service transformation and organisational change programme to be resourced, noting that the General Fund unallocated reserve would then be £14.446 million;

(b)          The General Fund Revenue Budget Carry Forwards in the sum of £1.227 million as outlined in Appendix A to the report of the Head of Finance;

(c)           The General Fund Capital Budget carry forwards of £6.464 million due mainly to the slippage of capital projects as outlined in the report.

Council

AGREED

1.    The re-designation of the established Business Efficiency Reserve as the Transformation Reserve and that the sum of £3 million be appropriated from the unallocated General Fund Reserve to the Transformation Reserve to enable the service transformation and organisational change programme to be resourced, noting that the General Fund unallocated reserve would then be £14.446 million.

2.    The General Fund Revenue Budget Carry Forwards in the sum of £1.227 million, as outlined in Appendix A to the report of the Head of Finance.

3.    The General Fund Capital Budget carry forwards of £6.464 million due mainly to the slippage of capital projects, as outlined in the report.

In introducing the recommendations of the Cabinet, at its meeting held on 2 October 2019, Councillor John Williams, the Lead Cabinet Member for Finance, drew attention to the following corrections needed to the report of the Head of Finance:

Page 69         –          the figures set out in paragraph 22 should read “£28.054  

million” and “£23.147 million”; and

Page 75         –          the figures in the table were in thousands so the title of   

the second column should read “Rollover value £000s”.

In moving the recommendations, Councillor John Williams highlighted the proposal to put £6 million into reserves. Normally growth in income would be factored into the Medium Term Financial Strategy (MTFS) but in view of the complexities in forecasting growth income and the current challenges associated with local government finance, it was prudent to take this sum as a “windfall” and to retain it within the Council’s reserves.

Councillor Neil Gough seconded the motion.

During discussion:-

·         Councillor Heather Williams asked if the grant for Village Design was  time limited and also questioned the reason for the rollover of the provision for the Local Plan.

·         Councillors Peter Topping, Tom Bygott and Deborah Roberts expressed concerns about the proposal to place £3 million in a Transformation Reserve and questioned what the benefits would be for the Council’s residents.

·         Councillor Neil Gough emphasised the uncertainties facing local government finance and commented on the need for the Council to embark on a programme of transformation, including digital transformation and commercialisation, to ensure that the organisation was equipped to face the future.

Councillor John Williams responded to Members’ questions and in particular:

·         Indicated that he was not aware of any time constraint on the village design grant;

·         Provided further detail on the need to appropriate the sum of £3 million to the Transformation Reserve in order to support the programme of transformation, business improvement, efficiency and commercialisation and to realise on-going savings.

Upon being put to the vote, votes were cast as follows:

In favour (26):

Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Dr. Martin Cahn, Dr. Claire Daunton, Dr. Douglas de Lacey, Clare Delderfield, Neil Gough, Jose Hales, Bill Handley, Geoff Harvey, Dr. Tumi Hawkins, Pippa Heylings, Steve Hunt, Alex Malyon, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Nick Sample, Bridget Smith, Hazel Smith, Dr. Ian Sollom, Dr. Aidan Van de Weyer, John Williams and Eileen Wilson.

Against (12):

Councillors Ruth Betson, Dr. Shrobona Bhattacharya, Tom Bygott, Grenville Chamberlain, Graham Cone, Sue Ellington, Mark Howell, Deborah Roberts, Peter Topping, Bunty Waters, Heather Williams and Nick Wright.

Abstain (0):

Council

RESOLVED:

To approve:

1.    The re-designation of the established Business Efficiency Reserve as the Transformation Reserve and that the sum of £3 million be appropriated from the unallocated General Fund Reserve to the Transformation Reserve to enable the service transformation and organisational change programme to be resourced, noting that the General Fund unallocated reserve would then be £14.446 million.

2.    The General Fund Revenue Budget Carry Forwards in the sum of £1.227 million, as outlined in Appendix A to the report of the Head of Finance.

3.    The General Fund Capital Budget carry forwards of £6.464 million due mainly to the slippage of capital projects, as outlined in the report.