Agenda item

Joint report of the Chamberlain and the Director of Markets and Consumer Protection (copy attached).

A joint report of the Chamberlain and the Director of Markets and Consumer Protection which compared the 2012/13 revenue outturn for the services overseen by this Committee with the final agreed budget for the year was considered. The report highlighted that the total net expenditure during the year was £5,674m whereas the total agreed budget was £6.059m representing an underspend of £0.385m.

The Senior Accountant clarified that the three wholesale Markets produced a combined operating surplus of £2.109m in 2012/13 with surpluses of £1.833m and £0.801 at Spitalfields and Billingsgate Markets respectively, which had been partly offset by a deficit of £0.525m at Smithfield Market. When capital charges and other central costs of £4.993m and £2.814 respectively are added, the overall cost to the City Corporation of operating the Markets was £5.698m in 2012/13.

A discussion took place and it was noted that there was a greater loss than budgeted at Smithfield Market due mainly to an increase in energy costs. In relation to underspends, the Senior Accountant reported that there was a process in place to allow underspends to be carried forward to the next financial year, subject to the agreement of the Chamberlain and Chairman and Deputy Chairman of the Resource Allocation Sub Committee.

In relation to the presentation of the accounts, Members requested that these be presented in a conventional and clear manner in future. The Senior Accountant commented that it was not possible to alter the format of reporting as it followed the CIPFA regulations in place for reporting local authority accounts. An additional annex B was added to supplement this request.

RESOLVED – That the report be noted.