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Draft Statement of Accounts for the Year Ended

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Draft Statement of Accounts for the Year Ended Draft Statement of Accounts For the Year Ended 31st March 2020 Blackpool Council Draft Statement of Accounts 2019/2020 Contents Page Section 1 Narrative Report 4 Section 2 Statement of Responsibilities for the Statement of Accounts 24 Section 3 Independent Auditor's Report 26 Section 4 Core Financial Statements - Comprehensive Income & Expenditure Statement 31 - Movement in Reserves Statement 32 - Balance Sheet 34 - Cash Flow Statement 35 Section 5 Notes to the Accounts 37 Section 6 Supplementary Single Entity Financial Statements - Housing Revenue Account 131 - Collection Fund 140 Section 7 Group Accounts 145 Section 8 Annual Governance Statement 155 Section 9 Glossary of Terms 157 2 Blackpool Council Draft Statement of Accounts 2019/2020 Introduction by Director of Resources – Steve Thompson Blackpool Council’s accounts show the financial results of the Council for the financial year 2019/20 and the financial position as at 31st March 2020. It is intended that these accounts will provide a useful and important source of financial information for the community, stakeholders, Council Members and other interested parties. The style and format of the accounts complies with CIPFA standards and is similar to those of previous years. The 2019/20 Budget was again challenging with a budget savings target of £9.0m on the back of successfully delivering £143.3m over the previous 8 years. This Budget has undergone detailed consideration and scrutiny over a lengthy formulation period. From the very outset this has involved the Council’s Cabinet Members, who have ensured that resources are aligned more than ever before to the Council’s specific priorities, followed by extensive engagement and consultation with key stakeholders such as the trade unions, business representatives, equality and diversity forums and of course our residents. Despite the financial constraints, the Council made sufficient provision within the Budget to accommodate: internal pay levels rises by at least 2.0% for the period from 1st April 2019 to 31st March 2020 in line with the latest employer’s pay offer and the payment of at least the National Living Wage to all contracted staff; the payment of annual increments; voluntary 5 days’ unpaid leave on average to continue; Auto-enrolment based on previous uptakes a non-pay inflation contingency, to address contractual commitments and valid non-pay pressures @ 2.0% Treasury Management budget predicated on a Base Rate of 1.00% (0.25% above current Base Rate) the latest estimates of Settlement Funding Assessment interest rates to remain at low levels the Council fulfils its statutory obligation to balance its Budget. These were all big challenges, but by working more collaboratively across Council directorates and indeed with other public sector partners where appropriate we have achieved common goals and efficiencies together. The Covid 19 pandemic impacted towards the very end of 2019/20 and therefore the full impact of this is not reflected in these Statement of Accounts. However the Council is expecting significant challenges in 2020/21 and beyond as it deals with the on-going crisis. The Narrative Report provides information about Blackpool, including key issues affecting the Council and its accounts. It also provides a summary of the financial position as at 31st March 2020. Steve Thompson Director of Resources 3 Blackpool Council Draft Statement of Accounts 2019/2020 Narrative Report An Introduction to Blackpool Blackpool is a seaside town situated on the north-west coast of England. It is the world’s first mass market seaside resort, with a proud heritage stretching back over 150 years. It covers an area of approximately 13.46 square miles and has a population of around 139,305. In addition to its sandy beaches, Blackpool's major attractions and landmarks include Blackpool Tower, Blackpool Illuminations, the Pleasure Beach, Blackpool Zoo, Sandcastle Water Park, the Winter Gardens, and the UK's only surviving first-generation tramway. Key Facts about Blackpool The profile of the local population dictates the direction and substance of the services provided by the Council, for example, there is an increasing demand for children’s and adult social care in Blackpool. The Mid 2018 population estimate shows older people (65 years and above) account for a greater proportion of Blackpool’s population than observed at national level. Total Population Aged 0 - 14 years 15 - 64 years Age 65 and over Number Number % Number % Number % England 55,977,178 10,144,712 18.1 35,653,213 63.7 10,179,253 18.2 Blackpool 139,305 24,506 17.6 86,397 62.0 28,402 20.4 Source: Office for National Statistics (ONS) – Mid-year population estimates Political Structure Blackpool Council is split into 21 wards each represented by 2 Councillors elected every four years. Following the local elections in May 2019 the political make-up of the Council during 2019/20 was as follows: Labour Party 23 Councillors Conservative Party 15 Councillors Independent 4 Councillors The Executive is the part of the Council which is responsible for most day‐to‐day decisions. The Executive is made up of a Leader and a Cabinet of nine other councillors whom the Leader has appointed. The Leader of the Council has also appointed one of these Cabinet Members as his deputy along with a Cabinet Assistant. When major decisions are to be discussed or made, these are published in the Executive’s Forward Plan in so far as they can be anticipated. If these major decisions are to be discussed at a meeting of the Executive, this will generally be open for the public to attend except where personal or confidential matters are being discussed. The Executive has to make decisions which are in line with the Council’s overall policies and budget. If it wishes to make a decision which is outside the budget or policy framework, this must be referred to the Council as a whole to decide. 4 Blackpool Council Draft Statement of Accounts 2019/2020 Corporate Leadership Team Supporting the work of the Councillors is the Corporate Leadership Team which is led by the Chief Executive Neil Jack. The make-up of the Corporate Leadership Team is as follows: Chief Executive (Head of Paid Service) Director of Adult Director of Children's Director of Public Director of Governance Director of Resources Director of Community Director of Director of Strategy and Services (Statutory) Services (Statutory) Health (Statutory) & Partnership Services (Statutory Finance & Environmental Communcations and Assistant Chief (Monitoring Officer) Officer) Services Regeneration Executive The Corporate Leadership Team provides managerial leadership and supports Councillors in: - developing strategies - delivering plans. Staffing At 31st March 2020 the Council employed 3,480 people (31st March 2019: 3,686) and also employed a further 1,105 (31st March 2019: 1,099) people in maintained schools. This represents 2,189 Full Time Equivalent Council staff (2018/19: 2,120) and 676 Full Time Equivalent schools staff (2018/19: 660). The chart below shows how these support the Council’s services. Blackpool Council Plan 2019 - 2024 The Council Plan 2019-2024 seeks to build on the successes of the previous plan which already delivered hundreds of millions of pounds worth of improvements and investment. It will do this through its two key priority areas: Maximising economic growth and opportunity across Blackpool; and creating increasingly stronger and more resilient communities by giving greater focus on prevention issues before they become a problem. 5 Blackpool Council Draft Statement of Accounts 2019/2020 Priority One - The Economy Visitor Experience - Tourism and Culture - Complete development of a new 21st century conference facility at the Winter Gardens and increase the number of conferences. - Finalise design and funding, then deliver the Blackpool Museum Project. - Implement a new model of funding and delivery to sustain the Illuminations, events programme and cultural services. - Deliver the first phase of a £300m investment into Blackpool Central, to include world class visitor attractions including the UKs first flying theatre. Infrastructure and Regeneration - Compete the tram extension, transport interchange and new 4* hotel at Blackpool North station. - Implement the Blackpool Enterprise Zone Delivery Plan, facilitating the growth of energy, aviation and food sectors. - Deliver extensions to the Central Business District at Talbot Gateway. - Further investment in highways, including completing the Quality Corridor programme, Yeadon Way upgrade and bridge renewal programme. Enterprise, Skills and Economic Inclusion - Get hundreds of people back into work via job schemes for the most vulnerable and disadvantaged, including Healthworks and More Positive Together. - Support local businesses to grow and expend by maximising take-up of the Business Loans Fund. - Work with partners to deliver the Opportunity Area programme, raising attainment and aspirations of our young people. Improving Housing - Deliver hundreds more affordable new homes, including the re-development of land at Grange Park and further properties at Foxhall Village. - Enable further housing delivery through pro-active assistance to developers, including use of Compulsory Purchase Order powers where necessary. - Enable My Blackpool Home to deliver at least an additional 455 new quality affordable homes for rent. Priority Two – Communities Young People - Continue to implement the NSPCC led A Better Start initiative, improving life chances for 0-3 year olds. - Improve the experiences and outcomes of young people in our services by improving relationships between organisations. - Facilitate a school led system which improves attainment at Key Stage 4. - Development of family hub model in local neighbourhoods for all age engagement and building community resilience. Health and Social Care - Implement a new approach to delivering smoking cessation support and initiatives in the town. - Shape the work of the Council towards delivering the Green and Blue Infrastructure strategy, greening the town. - Continue to increase numbers accessing drug and alcohol services at an earlier stage and sustaining a positive outcome.
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