Statement of Accounts For the Year Ended 31st March 2019 Blackpool Council Statement of Accounts 2018/2019 Contents Page Section 1 Narrative Report 4 Section 2 Statement of Responsibilities for the Statement of Accounts 18 Section 3 Independent Auditor's Report 20 Section 4 Core Financial Statements - Comprehensive Income & Expenditure Statement 26 - Movement in Reserves Statement 27 - Balance Sheet 28 - Cash Flow Statement 29 Section 5 Notes to the Accounts 31 Section 6 Supplementary Single Entity Financial Statements - Housing Revenue Account 126 - Collection Fund 134 Section 7 Group Accounts 139 Section 8 Annual Governance Statement 149 Section 9 Glossary of Terms 163 2 Blackpool Council Statement of Accounts 2018/2019 Introduction by Director of Resources – Steve Thompson Blackpool Council’s accounts show the financial results of the Council for the financial year 2018/19 and the financial position as at 31st March 2019. 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 2018/19 Budget was again challenging with a budget savings target of £5.5m on the back of successfully delivering £137.8m over the previous 7 years. This Budget underwent detailed consideration and scrutiny over a lengthy formulation period. From the very outset this involved the Council’s Cabinet Members, who ensured that resources were 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 level rises on average 2% for the period from 1st April 2018 to 31st March 2019 in line with the 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; a non-pay inflation contingency, to address contractual commitments and valid non-pay pressures @ 2.2%; the most recent estimates of Settlement Funding Assessment; slow interest rate rises but rates remain at low levels; and the Council fulfilling 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 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 2019. Steve Thompson Director of Resources 3 Blackpool Council Statement of Accounts 2018/2019 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 139,870. 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 2017 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 55,619,430 10,048,364 18.1 35,540,555 63.9 10,030,511 18.0 Blackpool 139,870 24,232 17.3 87,094 62.3 28,544 20.4 Source: Office for National Statistics – Mid-year population estimates Political Structure Blackpool Council is split into 21 wards each represented by 2 Councillors elected every four years. The political make-up of the Council during 2018/19 was as follows: Labour Party 26 Councillors Conservative Party 12 Councillors Independent 4 Councillors Following full elections on 2nd May 2019 the political make-up of the Council will be 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 Secretary. 4 Blackpool Council Statement of Accounts 2018/2019 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. 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 2019 the Council employed 3,686 people (31st March 2018: 3,656) and also employed a further 1,099 (31st March 2018: 1,088) people in schools. This represents 2,120 Full Time Equivalent Council staff (2017/18: 2,147) and 660 Full Time Equivalent schools staff (2017/18: 641). The chart on the next page shows how these support the Council’s services. 5 Blackpool Council Statement of Accounts 2018/2019 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. 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. 6 Blackpool Council Statement of Accounts 2018/2019 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