Agenda item

To receive and consider the report of the Deputy Director of Finance. The Executive member for Resources will be present at the meeting to answer any questions the Committee may have.

The Overview and Scrutiny Committee welcomed Chris Sinnott, Deputy Chief Executive and Councillor Peter Wilson, Executive Member (Resources).

Councillor Wilson explained that the budget situation was challenging and reminded members that the Council’s money came from Business Rates, Council Tax, New Homes Bonus, and grants, all of which was highlighted on page 86. The current challenge was not just to set the budget but to create a plan to balance the budget. There was outstanding uncertainty with business rates, as it was linked to the Fair Finding Review.

The report explained that there was a deficit of £908,000, increased from £302,000 due to the leisure centre service cost, in addition to the Covid-19 Pandemic. It was estimated that the deficit would increase to 3.2m next year and £4.3m the year after.

The report highlighted how the administration intended to balance the budget. First by explaining the saving made from the shared services arrangement, in addition to the income generated with Market Walk, Primrose Gardens, Strawberry Fields, and Logistic House. The deficit would reduce significantly to £107,000 going to 2m and then £2.9M, the year after.

It was proposed that council tax would be increased by 1.99%, with consideration given to increase parking charges without adversely impacting the high street.

The administration was considering investment sites and it was believed that future savings of £1m could be achieved by 2022-2023, with £1.3m the year after.

Councillor Wilson believed that it would be a considerable challenge to balance the books in light of the uncertainty with funding streams, but it was a testament to the hard work of Officers that allowed the administration to prioritise the Corporate Plan, and to ensure that money was correctly allocated.

In terms of reserves the general fund contained a committed £4M, and another £3.2m in reserves that covered Market Walk, and asset maintenance support for local businesses.

The Chair thanked Councillor Wilson, and to the officers that put the budget together. He enquired into the levels of money Chorley will receive from the Government Finance Settlement. Chris Sinnott said that they received the one-year settlement as part of the Fair Funding Review, but there was only certainty for the coming financial year and it was around £500,000. The figure was slightly less than the previous year.

The Chair queried if the leisure centre was going to lose £600,000 and if that figure included funds made available by central government to cover the losses of leisure centres. It was confirmed that it included the funding, but there was optimism for a recovery in the next financial year.

The Chair asked about income generated and budget deficit of £170,000 caused by Strawberry Fields and if there was any indication that it would improve. It was hoped that it would perform better, but it was a long term investment for the Council to provide a source of revenue for 25-50 years.  Although it was not producing revenue presently, interest and demand was growing despite the present situation, and the increase in working from home.

Members queried if there was a contingency for both Strawberry Fields and Digital House.  Councillor Wilson confirmed that there were contingency plans, but they were focused on Plan A and believed that when things were up and running, interest would increase.

The Chair thanked both Councillor Wilson and Chris Sinnott for attending and presenting.