Agenda item

The purpose of this report is for members to review and note the draft Statement of Accounts for 2019/20.

Members considered the Statement of Accounts 2019/20 report presented by the Chief Accountant.

Members asked questions, made comments and received responses as follows:

·         Councillor J Clark asked whether there is any way that projected figures can be obtained with regard to pension contribution figures. The Chief Accountant stated that there has been no update received with regard to the status of the pension fund so far as a result of the Covid pandemic, and he added that he would anticipate that they would wish to review this along with the actuaries in the first instance to ascertain the status. He added that is not usually the requirement to change contribution rates during the three year tri annual evaluation period but the council needs to ensure that it is not exposed to large increases in contribution rates and payments. He confirmed that discussions will take place with the pension fund and actuaries.

·         Councillor John Clark asked what the status is with regard to collection of Council Tax payments? The Chief Accountant explained that currently the collection rate is 4% -5% lower than what was expected which will result in a high arrears figure at the end of the year and the impact on the collection fund will be to decide how much of the level of non-collection rate that will be allowed. He added that work on this will commence shortly, to see what the impact will be and the amount of Council Tax support claims had increased over recent months and although this has levelled out currently, it is anticipated that in October the claims will rise, when the furlough scheme ends. The more Council Tax support that the Council awards, results in a lesser amount of Council Tax collected which impacts on the Council Tax deficit. He added that the Council are only liable for 15% of that deficit and the biggest authority that will contribute to that deficit is the County Council and Police and Fire Authority who will also contribute in proportion to the precept and although it is likely to be a larger figure, the impact on the Council will be muted dependent on how big that deficit will be.

·         The Chief Accountant explained that Central Government have proposed that the deficit on the collections funds at the end of the year will be spread over three years instead of being recovered the following year. Further guidance from the Government is still to be received.

·         The Chief Accountant  explained that with regard to Business Rates there are numerous reasons why the amount of Business Rates collected during the year, will not be as much as was first thought. One reason is non collection, but taking into account additional reliefs that have been awarded to the hospitality sector, which the Government will reimburse the Council for, the actual amount of Business Rates that have been collected is actually what was projected.  He stated that there are many other aspects that will impact on the final position at the year end. There are ongoing changes from the VOA office, with regard to valuations, which are resulting in a significant amount of refunds being made to businesses and the VOA are reducing all of the purpose built GP surgeries and as a result of the valuation tribunal, they are also taking all of the cash machines out of the rating system which will impact on a loss of Business Rates to the Council and will impact on the final position at year end. He stated that where there are variations in valuations, there is an increase in the appeals provision that we have to make. An independent valuation company is used by the Council to assist and more of these businesses are re-valued, which are increasing and therefore there is the need to ensure there is enough provision to cover this element.

·         The Chief Accountant stated with regard to the Business Rates collection fund we are liable for 40% of the deficit and the County Council are liable for 9% and the Police and Fire Authority are responsible for 1%. There is a big difference in how that deficit is calculated and how much of that deficit the Council is liable for.

·         Councillor John Clark stated as a Council we are mindful that we are suffering challenges, but are making provisions to act accordingly.

The Committee noted the Statement of Accounts 2019/20 report.