This report provides the Policy, Projects & Resources Committee with an update to the 2019/20 General Fund Revenue Budget, Housing Revenue Account and Capital Program that was agreed at Council on 27th February 2019. It is based upon actual expenditure and income from April to July and predicts a forecast for the end of the 2019/2020 financial year.

The report also gives an update regarding Treasury management & investment activity for 2019/20 and in accordance with the Treasury Management Strategy.

The General Fund is currently forecasting a £267K deficit.

On 10th July 2019 meeting, members noted concerns on overspends on certain line items with the 2018/19 Outturn report and asked for these budgets overspends to be explained and informed of cost control measures adopted to reduce future overspends. These specific line items have been addressed at paragraph 3.7.as set out in the report.

The Housing Revenue Account is forecasting a net operating deficit of £267k.

The Capital Programme is forecasting to underspend by £9.539m; the updated position includes slippage brought forward from 2018/19.

The Chairman posed a number of questions that officers felt unable to answer on the night and they promised to send written answers to all members.

Cllr Tumbridge informed the committee this was an information only item and requested members to note the following:

• To note the projected outturn forecasts and the reserve position for 2019/20 as set out within the report.

• To note the Treasury Management Activity and revised Prudential indicators included within the report.

Reasons for Recommendation

Effective financial management underpins all of the priorities for the Council and will enable the Council to operate within a sustainable budget environment.