Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

FINANCIAL REPORT 2011/2012
1.0 Overview and Summary
1.1 In 2011/12 following a reduction in grants of £33M from central government, the Council was faced
with the challenge of delivering these funding reductions whilst mitigating the impact of any cuts to
services on the residents of this borough. The Council had planned in advance for funding reductions,
though the extent and speed was unexpected. Consequently in January 2011 it took swift and decisive
action. At Finance Council in March 2011, members approved a two year budget and a Medium Term
Financial Strategy enabling the Council to put in place a provisional plan to deal with further funding
reductions in 2012/13 and in future years.
1.2 The Council established a Transformation Programme, managed by a Board of senior officers and
supported by a small team. Systems and processes were established to closely monitor the
achievement of the savings targets and take remedial action, if this proved necessary. During the
course of the year, members and officers have agreed and begun to implement further service and
cross-cutting reviews and projects. These measures have proved successful and coupled with the
careful management of the Council’s resources have enabled the Council to not just meet its financial
targets, but also make a contribution to reserves.
1.3 Finance Council in March 2011 created contingencies to meet the costs of the “downsizing and
transformation” programme. These contingent budgets amounted to £12.7M. The Council has incurred
costs of £2.454M in 2010/11 and £2.779M in 2011/12. These costs have proved lower than estimated.
Where possible, managers left posts vacant or made appointments on a temporary basis. They were
successful in securing fixed term external funding, enabling them to both maintain services (and jobs).
Given the widely expected reductions in funding, it is probable there will be further costs in future
years. £4.6M is being retained to meet these costs. However Finance Council in March 2012 did
agree to release £2.8M to support the 2012/13 budget and further mitigate the impact of budget
pressures in the short term.
1.4 During 2011/12 the Council has begun to understand the impact of many government initiatives, most
notably in Education, in Health and in Welfare. Members and officers are developing plans and in
some cases (such as Housing Benefits) taking action to address the issues these initiatives raise.
This places increased pressure on the resources of the Council and the communities and households
it serves. These pressures will continue over the next few years.
1.5 In 2011/12 the Council has invested £44.7M in the capital assets and infrastructure of this borough.
New secondary schools are being built and opened through the Building Schools for the Future
programme. The Council is supporting schemes to improve primary schools. Housing schemes in
Griffin have continued despite the loss of Housing Market Renewal funding. Work on roads and
highways has been enhanced as the Council has committed its own revenue resources in addition to
government funding. The Council’s new award winning market has opened, strengthening the retail
offer and consumer choice in the town centre.
1.6 The Council has continued to put its local communities at the centre of everything it does. It spent over
£1M in filling potholes and maintaining its public and green spaces, as residents saw this as a priority.
In setting the 2012/13 budget the Council consulted extensively and innovatively with its citizens, not
least with a stall in the market. Through its “Your Call” initiative, the Council has worked with its
citizens to improve this borough with Clean Up campaigns in many wards.
1.7 On a personal note I would like to thank all Members especially the Executive Members for the way in
which they have managed the resources entrusted to them and addressed the financial challenges
they have faced, making hard choices and difficult decisions in doing so. I would also like to thank
Councillor Andy Kay for his encouragement and support over the last year. My thanks also go to the
Chief Executive, all directors and staff for their hard work and commitment during this difficult year. I
must also mention Denise Park for the support and advice she has given me. Finally I would like to
record my thanks to my staff for their professional commitment and dedication, not to mention hard
work and long hours during a year in which they faced personally considerable change and at times,
an uncertain future.
2.0 Content of the Statement of Accounts
The purpose of this Financial Report is to offer interested parties an easily understandable guide to
the most significant matters reported in the accounts for the year ended 31 st March 2012, and provide
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