Agenda item

The Strategic Director of Resourcesoutlined a report setting out the Statement of Accounts 2009/10, prior to its consideration by the Cabinet on 14^th June, 2010, and by an extraordinary meeting of the Council on 29^th June, 2010. The final outturn position on the budget was a surplus of £253k against a budget of £106m. The Director outlined the financial position of the Council in detail and advised that although this was a period of real challenge for Local Government as a whole Slough Council was in as strong a position as most and better than some to face the challenges presented by cuts in public spending.

On completion of the presentation Members asked a number of questions including the following:-

• A Member asked whether the Council would achieve the 4% efficiency savings required by Government for the 3 year period to March 2011.  The Deputy Director of Finance advised that this would be achieved because provision had been made for the additional 1% that was required in 2010/11. 
• A Member referred to the prudential borrowing and capital receipts and asked when the Council would be advised of the capital budget for this year.  The Deputy Director of Finance advised that the budget had been agreed in February and nothing had changed since then; further details of the capital budget would be made available within the first monitoring report that would be available in July 2010.
• In relation to the forthcoming budget on the 22^nd June, a Member was concerned that local government cuts were anticipated which could affect the Council’s budget and she asked the Director to comment on this.  The Committee was advised that it was inevitable funding was vulnerable, in year cuts were an unprecedented challenge  but it looked like the  Government would leave the decision on how cuts would be implemented to individual authorities.  More information would be available following the budget  An update on the position would be brought to the committee as soon as the picture became clearer.
• A Member asked what implications the next census would have on the Council’s funding in view of past concerns regarding the inaccuracy of population statistics.  The Director advised that the formula for assessing the grant remained linked to population.  It was therefore important to ensure full public participation in the census.  The Committee was also advised that there was no guarantee that the new grant allocation would be set over a three year period and further that the Census information would not be released in time to influence the coming years grant allocation. 
• In relation to ‘earmarked reserves’, a Member noted that £285,000 was set against “Berkshire liabilities” and he asked what this was used for.  The Deputy Director of Finance advised that this was a historic obligation arising from the demise of the Berkshire County Council, where each of the unitary authorities contributed an amount for  outstanding risks.
• A Member asked how the Council would be able to predict spending if the Government’s aim was to half the UK deficit over a 5 year period.  The Director advised that the Council’s financial strategy would be extended from 3 to 5 years but this would very much be a moving feast and Officers would be required to make proposals for changes when  necessary and update members as and when further detail became clear.

Resolved – That the report be noted.