This report sets out the projected revenue and capital outturn positions for 2019/20 for both the General Fund and the Housing Revenue Accounts as at the end of September 2019 (Quarter 2), as well as performance for the second quarter against measures of success published in the Council’s Corporate Plan.

The Executive Director of Resources submitted a report setting out the projected revenue and capital outturn positions for 2019/20 for the General Fund and the Housing Revenue Account as at the end of September 2019 (Quarter 2), and performance for the second quarter against measures of success published in the Council’s Corporate Plan.  The following documents were attached to the report:

·         Appendix 1 – Financial Monitoring for Quarter 2

·         Appendix 2 – Performance Monitoring for Quarter 2

The report explained that the forecast outturn showed a projected underspend on General Fund Budgets at the end of Quarter 2 of £2.767m, with weighted risks of £0.791m.  Economic Growth and Neighbourhood Services (DEGNS) were projecting a net overspend of £0.643m against a budget of £18.171m, principally as the result of a lack of suitable investment properties coming to the market, and Brighter Futures for Children (BFfC) were forecasting an overspend of £1.651m against a budget of £47.899m, principally the result of agency staff costs and higher than anticipated Looked After Children placements and costs.  The General Fund capital budget was currently forecasting a £139m underspend, also in large part due to suitable investment properties not coming to the market. Additionally, the Homes for Reading business model had changed at the start of the year and the earmarked investment and loan financing of £25m was not forecast to be spent.  The remainder of the General Fund Capital Programme was forecasting an overspend of £4m in the current year, predominantly the result of additional financing being made available to Reading Transport Ltd, offset by a re-profiling of the Council’s vehicle replacement programme.

The report stated that the Housing Revenue Account was forecasting an underspend of £6.890m as at the end of September 2019 due to underspends and delays on major works, additional income and reduced capital financing costs. The under-spend would be transferred to reserves at year end.  The Housing Revenue Account Capital Programme was forecasting a £4m underspend, primarily due to delays in delivery of the New Build and Acquisitions programme.

The report also provided a summary of performance, as at the end of the second quarter, against the success measures to monitor progress against the Council’s six priorities published in the Corporate Plan.  The overall RAG Status of these indicators was that 19 measures were Green, seven measures were Amber, and 11 measures were Red.

Resolved –

(1)     That it be noted that:

a)       The forecast General Fund revenue outturn position as at the end of September 2019 was a net underspend of £2.767m with weighted risks of £0.791m;

b)       The forecast outturn position on the Housing Revenue Account as at the end of September 2019 was a projected underspend of £6.890m which would be contribute to HRA reserves;

c)       The forecast outturn on the Capital Programme as at the end of September 2019 was a projected in year underspend of £139.438m on the General Fund and a projected in year underspend of £3.713m for the Housing Revenue Account;

(2)     That the performance achieved against the Corporate Plan success measures, as set out in the report and Appendix 2 attached to the report be noted.