Agenda item

Budget Monitoring - including revenue, capital and treasury management - quarterly review of budget variations and treasury management

To update Members on a range of financial matters.


The Finance Manager introduced the agenda report and advised that a revenue surplus of approximately £226K for 2017/18 was forecast arising from variations to the original budget.


During discussion the following questions were asked:


·         Councillor Hook asked whether the decision to remove £40,000 in council tax support would be reinstated as there was now a £1M surplus.  The Leader advised that the budget setting process for 2018/19 had begun and it would be proper to review previous decisions made.  He believed Teignbridge offered the fairest council tax reduction scheme in Devon;

·         Councillor Dewhirst asked whether the external auditors’ reduction in fees of nearly 18% would mean the quality and efficiency of such audits in the future would be impaired.  The Finance Manager advised that auditors were required to conduct their audits in accordance with the audit principles and the question would be better put to them at the forthcoming Audit Scrutiny Committee;


·         Councillor Dewhirst asked whether the increase in leisure income of £40,000 had arisen with genuine new memberships or if was made up of persons previously paying on a pay as you go basis.  The Finance Manager advised it was a genuine gain;


·         Councillor Dewhirst stated the Chancellor had provided an additional £3bn for Brexit and asked what Teignbridge would do with any share it were to receive.  The Finance Manager advised that it was not known what central government would do with the additional monies – any information received from government would be made available to Members when possible;


·         Councillor Nutley noted that pay and display machines had recently been changed so that it was no longer a requirement to enter the last three digits of a car’s registration plate.  The Business Manager – Economy & Assets advised that machines had been reprogrammed at a cost of around £10K for all machines across the district following complaints from users and felt the changes would benefit the customer.  He advised there were no pay and display machines that gave change in the district which was why card payments and contactless payments were introduced.  Teignbridge Council bore the card fee so that the amount required on the machine was the amount the customer paid if paying by card;


·         Councillor Christophers sought clarification on New Homes Bonus (NHB) calculations going forward.  The Finance Manager stated that last year the government had introduced a baseline of 0.4%; a figure had been included in the consultation but not at that rate and this had come as a surprise to many local authorities.  If this was the same this year, any number could be used which would have budgetary effects going forward.


The Leader noted that with revenue support continuing to reduce by £1M a year with the amount next year being just under £400K, NHB would be important regards the future funding of the council and its priorities.




(a) that the revenue budget variations be approved;

(b) that the updated capital programme be approved;

(c) that the updated lending list be noted;

(d) That Full Council be recommended to note the mid-year review of treasury management.


Supporting documents: