Agenda item

To update the Committee on the delivery of the 2019/20 Treasury Management Strategy approved by Council on 6^th March 2019 and for the Committee for the Committee to note the Annual Treasury Strategy mid-year review 2019/20, including any cases of non-compliance.

8.1       Period 8 Finance Report 2019/20

8.1.1    Gerald Almeroth (Executive Director of Finance Resources) and Rikin Tailor (Head of Corporate Finance) submitted the Period 8 Finance Report, which provided details of the forecast outturn in respect of revenue and capital by Cabinet Portfolio (prior to leadership and Cabinet changes). The report also set out projected revenue and capital expenditure, together with key risks and opportunities.

8.1.2    The Committee noted a projected underspend of £0.0761m (0.4%) against budget on the previous portfolios, with potential to increase to £1.111m if all risks and opportunities were realised. The report also projected an expenditure variance of £24.252m and income variance of £2.493m, resulting in a net underspend of £21.759m. The Housing Revenue Account (HRA) revenue forecast was for an overall net surplus of £4.057m, resulting in an adverse variance of £5.736m compared to budget. The forecast gross capital expenditure outturn for the HRA at the end of period 8 was £142.771m, resulting in a total variance of £7.083m compared to the budget of £149.854m. Variances, risks and opportunities within Cabinet Portfolios continued to be monitored closely as the year progressed.

8.1.3    Issues discussed included the Housing Services’ variance figure; slippage in Capital Programmes; and continuing measures being taken to mitigate the persistent deficit for Westminster’s schools. The Committee heard that the schools’ deficit was predominantly related to primary schools with falling rolls, but that measures were already in place to support schools whilst maintaining standards. The Committee was advised that extra staff had been recruited to assist working with schools on developing robust deficit plans; and to work with the Schools Forum (the statutory advisory body) and both dioceses. The Committee requested continuing updates and monitoring.

8.1.4    The Committee made several requests for further information.

8.1.5    RESOLVED: That the Period 8 Monitoring Report be noted.

8.2       Quarter 3 Performance Report.

8.2.1    Mo Rahman (Data & Intelligence Manager) and Sophie Shore (Head of Strategy & Intelligence) presented a report which summarised the City Council’s performance for the third quarter of the 2019/20 financial year against City for All priorities. The report also set out progress and figures until the end of December. 

8.2.2    The Committee discussed notable achievements, including Westminster’s becoming a living wage employer and areas for improvement, such as the BAME pay gap areas of risk or off-track. The Committee made several requests for extra detail and asked to receive a report at its 30th April meeting from NHS England on low rates of immunisation and from officers a more detailed report on abuse against staff in public-facing roles. The Committee discussed areas of risk and observed that several Key Performance Indicators were off-track.

8.2.3    The Committee made several requests for further information.

8.2.4    RESOLVED: That the Quarter 3 Performance Report for 2019/20 be noted.

            ACTIONS:

1.         Committee Members to receive an update report at Year End on school finances/school deficits at the 30th April meeting.  (Action for Gerald Almeroth - Executive Director of Finance & Resources; Ian Heggs – Bi Borough Director of Education; and Steve Muldoon – Director of Commercial & Financial Management.) 

2.         The Committee to receive more information about short-term letting, with a breakdown of City Survey information by Ward. (Action for Mo Rahman - Data & Intelligence Manager)

3.         Committee Members to receive a report from NHS England on immunisations – and to also receive information about the consequences of not being vaccinated and what can be done to improve vaccination rates. NHS England to be invited to the Committee meeting on 30th April.  (Action for Bernie Flaherty - Bi-Borough Executive Director for Adult Social Care & Health; Russell Styles - Deputy Director of Public Health; and Katherine Reid - Strategy & Business Planning Manager, Public Health.)

4.         The language used in the report be revised to reflect the change to the language around corporate parenting that was adopted at Full Council in January. (Action for Sarah Newman - Bi-Borough Executive Director of Children’s Services; and for all where relevant.)

5.         The Committee to be provided with details about the levels of subsidy, beneficiaries and sustainability of the Strategic Investment Pot.  (Action for Greg Ward - Director of Regeneration & Economic Development: Growth Planning & Housing.)

6.         Committee Members to receive more detail on the risk of abuse to staff in public-facing roles, including where and in which Wards and how concentrated these incidents are. (Action for Sara Sutton - Executive Director of City Management & Communities; and Claudia Hemsley - Strategic Projects Manager: Growth, Planning & Housing Service Development.)

7.         Committee Members to further analysis of the decline in Paid for Parking and Permits.  (Action for Sara Sutton - Executive Director of City Management & Communities; and Claudia Hemsley - Strategic Projects Manager: Growth, Planning & Housing Service Development.)

8.         The Committee to receive more detail on the fragility of the care market, including the costs imposed on councils, closure costs and the extent of liability for taking over a care home. (Action for Gerald Almeroth - Executive Director of Finance & Resources; and Bernie Flaherty - Bi Borough Executive Director of Adults.)

9.         Committee Members to receive more detail on how the London Living Wage is being rolled out.  (Action for Gerald Almeroth - Executive Director of Finance & Resources.)

10.       The Committee to be provided with more detail and analysis about the risks related to planning fees, in particular Planning Performance Agreements. (Action for the Growth, Planning & Housing Service.)