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Statement of Accounts 2017/18

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Statement of Accounts 2017/18 STATEMENT OF ACCOUNTS 2017/18 2017/18 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 141 Page 3 Statement Page 46 Statements Page 40 Page 116 Statement of Movement in Reserves Comprehensive Income Housing Revenue Responsibilities for Statement and Expenditure Account (HRA) the Statement Page 41 Statement Supporting Supporting Notes of Accounts Notes Page 118 Page 16 Page 51 Annual Governance Balance Sheet Movement in Reserves Collection Fund Statement Page 42 Statement Supporting Statements Page 17 Notes Page 120 Page 65 Independent Auditor’s Cash Flow Statement Balance Sheet Collection Fund Report Page 44 Statement Supporting Supporting Notes Page 33 Notes Page 121 Page 74 Cash Flow Statement Group Accounts Supporting Notes Statements Page 109 Page 123 Other Supporting Notes Group Accounts Page 111 Supporting Notes Page 123 P a g e | 1 01 Written Statements and Narrative Report Narrative Report Page 3 Statement of Responsibilities for the Statement of Accounts Page 16 Annual Governance Statement Page 17 Independent Auditor’s Report Page 44 CHIEF FINANCE OFFICER’S NARRATIVE REPORT A. BACKGROUND Council Tax per head of population which is both below the national average, and considerably below the level of the council tax elsewhere in Bedfordshire, Local Government continues to face a challenging financial picture, the result of and is working hard to collect as much income as it can so that this can be the EU Referendum result and continued austerity. The Government has also reinvested back into services for Luton residents and businesses. announced its intention to move away from the revenue support grant system, The combination of increasing demand and reducing resources has put a and to replace this with a system based on 75% retention of increases in business considerable pressure on services, some of which were already challenged from rates. It is therefore critical that, the Council is successful in its strategy to previous years. Children’s and Adults Social Care Services are dealing with more become less grant dependent, which requires increasing income from other individuals requiring statutory support with increasing complexity. At the same sources. In association with the fair funding consultation, the integration with time, meeting the demand for increasing numbers of homeless and temporary health and increasing service demands, the uncertainty around the future of accommodation has led to a large overspend. In 2018/19 additional pressures local government finances shows no sign of relenting. have been reported in relation to unachieved corporate commissioning and Our medium term financial plan, updated for outturn, estimates that we will procurement savings, the running costs of the corporate estate, not achieving need to achieve at least £13.9 million of additional savings over the next two commercialisation income targets and the cost of the ICT service. years, to offset reductions in government funding and grants, and to meet the The Council continues to transform services to maximise value for money, costs of increased demand for essential services. This is despite £113 million of commercialise services and enhance the local business environment to attract savings already being achieved over the last seven years. further business investment to the town. By managing demand and cost of the The Council provides value for money to the taxpayers of Luton by setting a most challenging services, resources can be used more effectively to maximise customer satisfaction and support. Commercialisation and the Luton Investment Shire Unitaries Council Tax Per Head 600 Framework will ensure the Council maximises income potential and maintains value for money services for the public it serves. 500 400 The Council’s is fortunate that it owns London Luton Airport Limited (LLAL) and is able to utilise income from the airport to invest in non-statutory services in 300 Luton. Substantial investment in a number of development projects for the 200 airport is in progress, with work commenced on the £225 million Direct Air Rail Transport system in February 2018. This will create a fast, frequent and efficient 100 transport link from Luton Airport Parkway station to the airport and is expected 0 to facilitate further growth in the number of passengers using the airport. P a g e | 3 B. ABOUT LUTON 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 Luton is a vibrant, modern and diverse town in the East of England. Thirty miles Health England also show that Luton is faring worse than the national average on north of London, and at the centre of the Oxford-Cambridge strategic growth key indicators including life expectancy and childhood obesity. corridor, the town has excellent transport links by road, rail and air. London With a young and relatively deprived population, national issues such as housing Luton Airport is the fifth largest airport in the UK today, with over 15 million and skills shortages remain an important challenge in Luton. Recent figures show passengers annually. Luton is situated by the M1 motorway, just 10 miles from that just 51% of Luton’s students gained 5 A*-Cs at GCSE including English and the M25 and is 22 minutes from London by train. Maths; compared to the national average of 57.8%. Despite this Luton was The official estimate of Luton’s population for 2016 was 216,800. The town is ranked 68th out of 324 local authorities nationally for social mobility in 2017 and densely populated with around 49 persons per hectare. Luton is now the third we are also in the top 25% for early years’ education. With the University of youngest city in the UK, according to the centre for cities. The 2011 census Bedfordshire at the heart of the town and the growth of apprenticeships and showed that 22% of the population was under the age of 15, compared with just adult learning opportunities, pathways from the classroom into work are 18% both regionally and nationally. becoming clearer in Luton. 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. P a g e | 4 C. CORPORATE OBJECTIVES The Corporate Plan tells residents what the Council is going to do over the next few years along with what it will be doing differently and why. Sitting directly Luton Borough Council has a responsibility to report on how it is fulfilling its below the Corporate Plan are other key plans or strategies which directly address statutory duties and how it is providing cost effective, good quality services to the Council’s priorities. Each Service Director is required to have a service plan businesses and residents in Luton. The Council needs to make sure that it does which shows how their services will undertake activities to meet the Council’s six this in a clear, open and easy to understand way so that everyone can see where strategic priorities and clearly demonstrates the expected positive impact that we are performing well, in addition to any areas where we need to improve. they will deliver for Luton residents. The most relevant strategies and plans are listed below. The Council has developed a new Strategic Planning Framework which builds upon reporting processes and draws together different plans and strategies Enhancing skills & education across the Council into one, comprehensive reporting structure. Building economic growth & prosperity Skills & Employability Strategy Apprenticeship Strategy Luton Investment Framework Corporate Children & Young People's Plan Plan Strategic Improving health & well being Plans Developing quality homes & (6 priorities) Joins Strategic Needs Assessment infrastructure Health & Well-Being Strategy Housing Investment Strategy Better Togther Strategy Local Plan & Local Transport Plan Service Plan Sports, Arts & Culture strategies Homelessness Strategy (service specific Flying Start (0-5) strategies & actions) Supporting safe, strong and cohesive Integrated, efficient & digital service communities Team Plan 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 Digital Strategy Local Children Safeguarding Board Individual Objectives Medium Term Financial Plan Threshold document P a g e | 5 D. CORPORATE PERFORMANCE DEVELOPING QUALITY HOMES AND INFRASTRUCTURE A corporate performance report is provided to the management team, Overview £25 million development of Marsh Farm underway, where 82 per cent of the and Scrutiny Board and Executive on a quarterly basis. Current performance is supply chain is local.
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