Public reports pack PDF 3 MB - Blaby District Council

6.6 Utilisation of General Fund Balances
Under arrangements incorporated into the Council’s constitution, the Cabinet
Executive has authority to access the Council’s balances to meet additional
cost pressures which may arise during the course of any one financial year up
to the value of 2% of the net revenue budget. This equates to £182,149 for
2012/13 financial year. The forecast extra net revenue expenditure falls within
this figure.
The balances at the commencement of the financial year stood at £2.641m.
After taking into account the forecast outturn figure referred to earlier in this
report, and planned contributions principally in respect of the Core Strategy,
the net impact would be a reduction of £410,095 in the General Fund balance
bringing the year end figure to £2.231m, equivalent to 24.5% of the net
General Revenue Account budget.
6.7 Looking Forward
There are a significant number of financial challenges going forward which the
Council will need to start to get to grips with as we approach the new financial
year. These include:-
• Proposals to change Council Tax Benefit, including a 10% reduction in
funding, from 2013/14 onwards
• Preparation for the introduction of Universal Credit over a period from
2013/14 to 2017/18
• The further reductions in core grant funding planned for 2013/14 through
to 2014/15, as set out in the Spending Review
• The risks associated with the introduction of Business Rate Reduction,
placing increasing resilience on the buoyancy of the local economy for any
growth in core grant funding
• The Government’s requirement to fund future allocations of New Homes
Bonus, estimated nationally at £2bn, from within income generated by
Business Rates and the drive to generate additional income through
delivering on new homes
• The increasing focus on the development of the local economy to both
sustain and create jobs and wealth
6.8 Conclusion
The first half of 2012/13 financial year has seen services continue to be
delivered to a high standard. There are additional budget pressures evident at
the half year arising principally from reductions in income and increases in
establishment costs. This is being addressed by way of a contribution from
the balances. It will be essential to maintain close monitoring of revenue
income and expenditure during the second half of the year to minimise any
potential end of year adverse variance. The Council is well prepared
financially for the future challenges ahead and will continue to provide sound
financial management of the public funds under its stewardship.
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