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Statement of Accounts 2018-19

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Statement of Accounts 2018-19 Statement of Accounts 2018 - 2019 Kingston upon Hull City Council Statement of Accounts 2018/19 Page Introductory Statements Narrative Report by the Director of Finance and Transformation (Section 151 Officer) 2 Statement of Responsibilities 16 Financial Statements and Notes Movement in Reserves Statement 17 Comprehensive Income and Expenditure Statement 19 Balance Sheet 20 Cash Flow Statement 21 Notes to the Main Financial Statements 22 Other Financial Statements and Explanatory Notes Housing Revenue Account and Explanatory Notes 120 Collection Fund and Explanatory Notes 126 Group Accounts 129 Additional Information Glossary of Terms 144 Feedback Form 147 - 1 - Kingston upon Hull City Council Statement of Accounts 2018/19 NARRATIVE REPORT 1. Introduction Over the past five years Hull has transformed into a nationally recognised and celebrated city, whilst at the same time responding to all of the challenges faced by the public sector. Hull is rapidly moving towards becoming a net contributor to the regional economy. Delivery of Green Port Hull and City of Culture 2017 has provided a platform that has set in train an economic investment profile to rival any city in the Northern Powerhouse and Yorkshire Devolution Agenda. Population, the economy and visitor numbers have also continued to grow. All of which has led to a new degree of confidence and self-belief. Whilst at the same time challenges remain for those most vulnerable or 'distanced' from engagement and excluded from the benefits of economic success. Demands on key services such as children's and adults social care, housing, transport and education also continues to grow. This places ever greater strains on budgets which continue to reduce, due to year on year reductions in government funding. The Council does not face these challenges alone – it is an issue for the entire city and region. The size of the budget gap, public sector funding pressures including changes to our funding and increased demand for services mean that we cannot continue to run the Council in the way that we have done – some things will need to change; partnership working and innovative approaches have become increasingly important. In response the Council will continue to reshape its services, looking at ways in which we can deliver services and achieve better outcomes more efficiently and in new ways. Increasingly this will involve closer working with partners across all sectors to find joint solutions. This will include the people and communities of Hull being part of the solution too as, if we cannot work together, we may have to stop or reduce services even further. It will also enable maximising the value of public spend to the local economy, alongside greater efficiencies through closer working across public sector organisations. 2. Profile of the City Hull is a unique city with a proud maritime heritage. As an ‘entirely urban island’ surrounded by the deeply rural East Riding of Yorkshire and the Humber Estuary; it serves a large hinterland of coast and countryside. Covering 7,145 hectares (27.59 square miles) Hull has one of the most tightly drawn administrative boundaries in the country. Its population of 260,700 live across 21 wards and include a disproportionate share of low-income, poorly-qualified, unemployed and economically inactive residents living in some of the most deprived areas of England. The city’s natural suburban villages (e.g. Cottingham, Hedon, Hessle, and Willerby.) are in the more affluent East Riding of Yorkshire, many of whose residents commute into the city for work and for retail / leisure activities. Hull is the only east coast city to have a port within its administrative boundaries. The Port of Hull is the largest single item of transport infrastructure within the City and is poised to become a major national centre for the offshore renewables sector. The sustained redevelopment programme undertaken by Associated British Ports has made Hull one of the best-equipped freight and passenger centres in the UK, with additional capacity for growth. The M62, stretching across Britain, links Hull to Liverpool (via Leeds and Manchester) and intersects with the north-south A1/M1 (London to Edinburgh) route. Hull Key Facts Hull is home to 260,700 people with a travel to work population of 515,000 – strong population growth in recent years is due to reducing outward internal migration and increasing inward internal migration (2017). There are 120,780 households (2018). This number has grown by over 1,000 in each year over the last four years; with continued house building and city centre conversions (2018). - 2 - Kingston upon Hull City Council Statement of Accounts 2018/19 With an economy worth £5,531m (2017); the largest industry sector is manufacturing. This is worth £1,465m or 26.5% of total GVA. This is considerably higher than the regional and national figures. In 2018, 127,100 Hull residents are in employment (73.0%) – the highest level of employment on record. Since 2012 the increase in the employment rate in Hull (60.6% to 73.0%) has occurred significantly faster than nationally (70.8% to 75.4%) resulting in a significant narrowing of the gap. There are 125,000 jobs based in Hull (2018) – the highest number on recent record. Most of these jobs are based in manufacturing (16.8%), wholesale and retail trade (15.2%), human health and social work (14.4%) and administrative and support service activities (12.0%). In 2018, Hull is home to over 8,330 local businesses – a small decrease from 2017 (8,430) but an increase of 785 (10%) over five years. Median resident weekly wages in Hull are £111 below the England average (2018) but are currently at their highest level on record. Hull is ranked as the 3rd most deprived local authority in England (2015). 18.6% of all households are classed as workless (2017) compared to 14% nationally. 27.4% of all children under 16 are estimated to be living in poverty (2016) and 13.8% of households experience fuel poverty (2016). Life expectancy at birth is 3 years below the national average (2015-17) and has fallen over each of the last three years. Healthy life expectancy is significantly below the national average suggesting residents of Hull experience an above average number of years of ill health. The GCSE average Attainment 8 score in Hull is 43.3%; below the regional figure of 45.1% and the national figure of 44.5% (2017/18). Attainment, particularly in English and Maths, is improving. Attainment in English and Maths at grade 4 or above increased from 50.6% to 57.1% over the last year; compared to 59.4% nationally. Rates of Children in Need (666.4 per 10,000 children) and Looked After Children (133 per 10,000 children) are both nearly twice the national average (2017/18) and both rates increased over the previous year. Current estimates suggest that there are approximately 45,700 working age people in Hull with a disability (2018). This equates to 26.1% of working age people (compared to 20.1% nationally) and the number has increased over two years. Crime over the last twelve months is 18% higher compared to the previous year; including a notable increase (21%) in violent offences. Over the same period the number of ASB incidents has fallen by 14%. 75% of residents are proud to live and work in Hull (Dec. 2017). Council Statistics Responsible for 24,200 council homes (2017). Responsible for (state funded) 130 nursery school children, 25,900 primary school children, 13,700 secondary school children, 620 special school students and 400 students in PRU’s (2018). 7,100 children with Special Educational Needs (2018). 5,200 children referred to children’s social care services (Year to March 2018). Provide free school meals to 5,700 school children (2018). 104,500 tonnes of household waste collected, of which 51,300 (49.1%) sent for recycling (2018). Made 650 homeless decisions (2018) of which 460 classed as homeless and in priority need. Over 4,600 people prevented from being homeless and 340 relieved from homelessness (2018). 77% of residents think Hull City Council is working towards a better city (Dec 2016). 4,720 employees (workforce report - 31 Mar 19). 3. Significant Issues for 2019/20 and Beyond The Council's key challenge is responding to increasing demand for services but reductions in the money it has available. The Council, and City, as Yorkshire’s only major port, faces specific challenges and opportunities in relation to exiting the European Union. There are also a wide range of further challenges as well as opportunities: - 3 - Kingston upon Hull City Council Statement of Accounts 2018/19 Maintaining key infrastructure and improving the environment. Improving economic productivity, skills and education. Devolution and the role of cities. Climate change and living with water. Rising service demands and expectations of adult and children’s social care services. Income inequality and impacts of welfare reform. Digital access and the provision of online services. Working more efficiently within the council and across partnerships. Future funding of local government. Rising numbers of service demands - many more people need Council services and this creates significant budget pressures. We need to get better at predicting fluctuations in demand and allocating resources to where they are most needed and helping to build resilient communities that are able to support themselves. Digital revolution - people expect to access services online, with immediate responses, which changes the way that all service providers work. We will need to increase our 'digital first' approach enabling quick and more efficient responses to service requests. Simplifying processes / using our data better - we've already dramatically reduced our support services (often known as the ‘back office’) as a way of responding to the cuts in funding, and will now look towards how we can increase the use of data, research and intelligence, keeping pace with the need for new technology to improve the way we work, particularly through the Work Smart Programme to enable flexible, more customer focused working.
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