Agenda item

To consider the report.

Following consideration of the officer report, appendices and discussion, the Executive:

a.        Agreed to note the final overall overspend for Somerset of £18.7m funded from reserves.

b.        Agreed the requested carry forwards of £0.5m.

c.        Noted the opening position of £26.8m General Fund Reserves as at the 1 April 2023.

d.        Approved that £23m of Earmarked reserves are transferred in General Fund Reserves to ensure they are maintained at the appropriate level and to receive a report detailing the amalgamated earmarked reserves position at the October Executive meeting. 

e.        Noted the opening position of £156.8m of Somerset Council earmarked reserves as set out in Table 4 of the report and the current commitments against those reserves.

f.         Agreed the additions and amendments to the Capital Programme in the last quarter.

g.        Noted the completed capital projects.

h.        Noted the position on capital receipts and commitments.

i.         Noted the outturn positions of Sedgemoor District Councils Housing Revenue Account (an underspend of £0.446m) and Somerset West and Taunton (an overspend of £0.227m). 

j.         Approved the capital carry forwards of £4.6m relating to Sedgemoor District Councils HRA.

k.        Approved the reduction of £8.8m for capital schemes no longer required within the previous Somerset West and Taunton HRA

The Executive recommended to Council:

l.         To note the year end position of the legacy Councils’ General Fund Capital Programmes and approve the carry forward requests of £99.5m and revised Capital Programme.

m.       To note the year end position of the legacy Councils’ HRA Capital Programmes and approve the carry forward requests of £90.4m and revised Capital Programme.

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report.

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: that the five legacy Council and the Pension Fund Statement of Accounts had been published; that the report outlines the overall impact of the outturn position for each legacy Council, including the opening reserves position, capital programme and Housing Revenue Account (HRA) for the former South Somerset District Council and Somerset West and Taunton Council; that the position of each legacy Council was outlined in the large number of appendices, noting and apologising that Appendix One – Somerset County Council Outturn Report 2022/23 had been published as a late supplementary report, and that the report had been available to view via the Scrutiny Committee – Corporate and Resources agenda for 7 September meeting;  the observation of the different styles of reporting and presentation across the legacy Councils and the opportunity to review and agree a reporting and presentation style for Somerset Council; the revenue budget overspend and the significant draw on reserves for 2022/23; the transfer of funds and the opening position for Somerset Council general fund reserve; that an amalgamated earmarked reserves position report to be received at the 4 October 2023 Executive meeting; the challenges and the need to rationalise the capital programme, including increased inflation, interest rates, project funding; the useable capital receipts of legacy Councils and current commitments;  and the thanks and appreciation to Officers for their work to deliver through the many challenges presented.

The Executive Director - Resources and Corporate Services, Jason Vaughan, further added to the above points, highlighting: that the report is a key document bringing together vital information of the five legacy Councils; clarified the audit position including: the published and outstanding audits and the national audit delays; the reserves position, including general fund reserves, remaining earmarked reserves and reserves held for other bodies.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the progression following the reported positions of the five legacy Councils; the Capital programme and potential cost increase; the work to improve the budget reporting and achieve a better understanding of risks, funding and clear context; and the transfer of useable and non-useable reserves and the effect on the resilience of the Council and the inclusion of clarity of the useable and non-useable reserves to be included in the amalgamated earmarked reserves report scheduled to  be considered at the October Executive meeting.

In response, the Executive Director – Resources and Corporate Services, Jason Vaughan, advised of the review of the capital receipts and commitments of the capital programme to identify and recommend the most effective use within the Medium Term Financial Programme.

The Executive proceeded to vote on the recommendations, which were agreed unanimously.

The Executive: 

a.        Agreed to note the final overall overspend for Somerset of £18.7m funded  from reserves.

b.        Agreed the requested carry forwards of £0.5m.

c.        Noted the opening position of £26.8m General Fund Reserves as at the 1 April 2023.

d.        Approved that £23m of Earmarked reserves are transferred in General Fund Reserves to ensure they are maintained at the appropriate level and to receive a report detailing the amalgamated earmarked reserves position at the October Executive meeting. 

e.        Noted the opening position of £156.8m of Somerset Council earmarked reserves as set out in Table 4 of the report and the current commitments against those reserves.

f.         Agreed the additions and amendments to the Capital Programme in the last quarter.

g.        Noted the completed capital projects.

h.        Noted the position on capital receipts and commitments.

i.         Noted the outturn positions of Sedgemoor District Councils Housing Revenue Account (an underspend of £0.446m) and Somerset West and Taunton (an overspend of £0.227m). 

j.         Approved the capital carry forwards of £4.6m relating to Sedgemoor District Councils HRA.

k.        Approved the reduction of £8.8m for capital schemes no longer required within the previous Somerset West and Taunton HRA

The Executive recommended to Council:

l.         To note the year end position of the legacy Councils’ General Fund Capital Programmes and approve the carry forward requests of £99.5m and revised Capital Programme.

m.       To note the year end position of the legacy Councils’ HRA Capital Programmes and approve the carry forward requests of £90.4m and revised Capital Programme.

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report