Issue - meetings

To receive and consider the report of the Director of Finance.

Steve Kenyon, Deputy Director of Finance presented the report that summarised the annual index compiled by CIPFA, the purpose was to provide an assurance of financial health. 

CIPFA produced the reports through various statutory returns submitted during the year, and then reports are produced with 12 councils grouped together that have similar social, demographic, and economic factors. It was highlighted that there were variances in the way councils reported their statutory returns that can add difficult to compare with other councils, however, the council was able to compare its previous performance. Being grouped with South Ribble allowed accurate comparable figures due to the shared finance service.

Reserve sustainability was scored on a scale of 100, and the council scored 100.

The council maintained 96.5% of its annual spend in reserve. The council placed 139^th in the country, and the 10^th in Lancashire.

All councils experienced an increase in the reserves due to the receipt of Covid-19 funds.

The council performed well with interest payable and this was due to the investments made in the borough, which including Logistic House, Market Walk, and Strawberry Fields. The income stream from the projects were healthy to support the revenue budget, however, the projects were funded from borrowing and required interest payments.

The council was midtable for external debt and scored high on fees and charges related to investment generated income. It was highlighted that the council held a strong council tax base.

Business growth rate was healthy and demonstrated that Chorley was a place business wanted to locate and grow. It was commented as all of the data within the report was a ‘snapshot in time’, South Ribble had a particularly good year in 2020/21 and had a number of big assessments that came on stream that included the opening of a Tesco Supermarket, an Aldi, work completed on one of the trading estates and at the hospital which boosted the business rates for that year.

The council intended on increasing the monitoring of business growth rate to support the annual budget. More analysis to be completed identifying the top ten businesses in the borough, the businesses that were migrating in, and those that are developing and growing in Chorley.

The report provided independent assurance that the council was in a strong position, while highlighting the benefits from investments made.

Resolved – That the report be noted.