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Statement of Accounts 2018/19

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Statement of Accounts 2018/19 Statement of Accounts 2018/19 01 02 03 04 05 Written Core Financial Notes to the Supplementary Glossary Statements and Statements Accounts Statement and Narrative Report Supporting Notes Chief Finance Officer’s Comprehensive Income General Accounting Housing Revenue Glossary of Terms Narrative Report and Expenditure Policies and Judgements Account (HRA) Page 134 Page 4 Statement Page 44 Statements Group Page 36 Page 127 Single Page 37 Statement of Movement in Reserves Comprehensive Income Housing Revenue Responsibilities for Statement and Expenditure Account (HRA) the Statement Group Page 38 Statement Supporting Supporting Notes of Accounts Single Page 39 Notes Page 129 Page 20 Page 52 Annual Governance Balance Sheet Movement in Reserves Collection Fund Statement Group Page 40 Statement Supporting Statements Page 22 Single Page 40 Notes Page 131 Page 66 Independent Auditor’s Cash Flow Statement Balance Sheet Collection Fund Report Group Page 42 Statement Supporting Supporting Notes Page 34 Single Page 42 Notes Page 132 Page 76 Cash Flow Statement Supporting Notes Page 118 Other Supporting Notes Page 120 P age | 2 01 Contents Page Written Narrative Report 4 Statements Statement of Responsibilities for the Statement of 20 and Accounts Narrative Annual Governance Statement 22 Report Independent Auditor’s Report 34 P age | 3 Chief Finance Officer’s Narrative Report Introduction The financial landscape for Local Government continues to be challenging, and especially hard to manage due to Brexit and the ongoing debate on a realistic level of funding required by local authorities to be sustainable. This is clouded further by the uncertainty surrounding business rates retention and the delay of the government’s spending review. The outcomes of all these changes are not yet fully understood but may impact significantly on the Council’s finances. The Council is not alone in unprecedented service pressures in relation to Children’s Social Care, Homelessness and general increases in demand across all service provisions. Luton continues to remain agile and proactive in managing these demands whilst maintaining financial stability and maximising the value for money delivered to the local tax payer. Notwithstanding these financial challenges and uncertain backdrop the Council continues to deliver on its progressive place building strategy, the ‘Luton Investment Framework’, with remarkable progress in the construction of the Luton DART, application to expand London Luton Airport and numerous commercial development projects. Together with our partners, we are on schedule to secure £1.5 billion investment to transform the town and create 18,500 quality jobs for local people; while driving improvements to health and wellbeing, creating opportunities for residents, raising aspirations and enhancing prosperity across the town. During 2018/19 the Council has been successful in bidding for £100 million of Special Infrastructure Rate loans from the Public Works Loan Board and is currently negotiating an additional £125 million of loans from the European Investment Bank. These successful applications support the strong vision and financial management of the Council and the major projects it is undertaking; not to mention the considerable financial savings achieved by the competitive interest rates of the loans. 600 Shire Unitaries Council Tax Per Head In the 2018/19 budget the Council regrettably was left with little 500 other option than to include a Council Tax increase of 2.99% in 400 addition to a 3% precept for Adult Social Care. These increases were a necessity in order to prevent the reduction of front line services and 300 potential job losses. Nevertheless the council continues to deliver 200 th good value for money for the local population. Luton has the 4 100 lowest Council Tax per head of population in comparison to all other Head £ per Tax Council Shire Unitary Councils. 0 The Council’s financial management remained robust during 2018/19 with the ability to increase reserves in revenue, capital and the Housing Revenue Account (HRA). Significant revenue pressures do continue to exist with non-recurring savings relieving a number of the costs during the financial year. 2019/20 is expected to be another financially challenging year for the Council as we continue to balance additional investment for the future against increasing service demands. P age | 4 Background Luton is a vibrant, modern and diverse town in the East of England. Thirty miles north of London, and at the centre of the Oxford-Cambridge strategic growth corridor, the town has excellent transport links by road, rail and air. London Luton Airport is the fifth largest airport in the UK today, with over 15 million passengers annually. Luton is situated by the M1 motorway, just 10 miles from the M25 and is 22 minutes from London by train. The official estimate of Luton’s population for 2016 was 216,800. The town is densely populated with around 49 persons per hectare. Luton is now the third youngest town in the UK, according to the centre for cities. The 2011 census showed that 22% of the population was under the age of 15, compared with just 18% both regionally and nationally. The town is also ethnically diverse, with approximately 55% of the population being of non-white British origins. Due to its industrial base and international airport, Luton is home to significant Asian, African, Caribbean, Irish and Eastern European communities. Less than half of the population were recorded as Christian at the last Census, with around 24% of people identifying as Muslims and many people of other faiths including Hindus, Sikhs, Jews and Buddhists. Historically, Luton’s economy has resembled that of an industrial town in the North of England. From the famous hat-making trade of the Victorian age to the Vauxhall plant which has employed thousands of Lutonians for the best part of a century, high-quality manufacturing has long been a feature of the town. Aviation and engineering are now among the largest employers in Luton, with major companies such as easyJet, Leonardo and GKN all based in the town. While the coming years are beginning to look extremely bright for our town, there are still immense challenges around health and deprivation. In 2015 Luton was ranked as the 59th most deprived local authority in the country, compared with being 87th almost a decade earlier. A study by the Centre for Research in Social Policy showed that around a third of children in the town were in poverty in 2016. The latest figures from Public Health England also show that Luton is faring worse than the national average on key indicators including life expectancy and childhood obesity. With a young and relatively deprived population, national issues such as housing and skills shortages remain an important challenge in Luton. Recent figures show that just 51% of Luton’s students gained 5 A*-Cs at GCSE including English and Maths; compared to the national average of 57.8%. Despite this Luton was ranked 68th out of 324 local authorities nationally for social mobility in 2017 and we are also in the top 25% for early years’ education. With the University of Bedfordshire at the heart of the town and the growth of apprenticeships and adult learning opportunities, pathways from the classroom into work are becoming clearer in Luton. P age | 5 Corporate Governance Luton Borough Council has a responsibility to report on how it is fulfilling its The Corporate Plan tells residents what the Council is going to do over the statutory duties and how it is providing cost effective, good quality services next few years along with what it will be doing differently and why. to businesses and residents in Luton. The Council needs to make sure that it Sitting directly below the Corporate Plan are other key plans or strategies does this in a clear, open and easy to understand way so that everyone can which directly address the Council’s priorities. Each Service Director is see where we are performing well, in addition to any areas where we need required to have a service plan which shows how their services will to improve. undertake activities to meet the Council’s six strategic priorities and clearly The Council has developed a new Strategic Planning Framework which builds demonstrates the expected positive impact that they will deliver for Luton upon reporting processes and draws together different plans and strategies residents. The most relevant strategies and plans are listed below. across the Council into one, comprehensive reporting structure. Corporate Enhancing skills & education Plan Building economic growth & prosperity Skills & Employability Strategy Luton Investment Framework Apprenticeship Strategy Children & Young People's Plan Strategic Plans (6 priorities) Improving health & well being Developing quality homes & Service Plan (service Joint Strategic Needs Assessment infrastructure Health & Well-Being Strategy Housing Investment Strategy specific strategies & Better Togther Strategy Local Plan & Local Transport Plan Sports, Arts & Culture strategies actions) Homelessness Strategy Flying Start (0-5) Team Plan Supporting safe, strong and cohesive Integrated, efficient & digital service communities delivery - striving for a 'one Luton' Community Safety Strategy approach Prevent Duty Plan Transformation Strategy Volunteering Strategy Organisational Development Strategy Anti-Poverty & Social Mobility Strategy Individual Objectives Digital Strategy Local Children Safeguarding Board Medium Term Financial Plan Threshold document P age | 6 Achievements in Luton April – June 2018 the £1.9m skills and opportunities programme – a three year plan to drive aspiration and highlight career opportunities across Luton. o Luton Council announced an agreed investment package of a £3.2m grant with Peugeot SA, securing the Vauxhall van factory’s future and the • Almost 1.5 million passengers travelled through London Luton Airport in creation of over 200 new jobs. This will also mean protecting many local May 2018. This is a 3.6% increase compared to May last year. This is the supply and support jobs which depend on the operations of the plant.
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