Agenda item

Report of the Chamberlain and the Director of Markets and Consumer Protection.

The Committee considered a joint report of the Chamberlain and the Director of Markets and Consumer Protection which sought approval to substantial changes to the 2013/14 revenue budgets. Overall, the revised 2013-14 provisional revenue budget totalled £80,000, a decrease of (£4.852m) compared with the original budget approved by the Committee in November 2012.

 The main reasons for the decrease were:

·           Total income had increased by (£808,000), mainly because of the Smithfield lease renewals.

·           Central Support Services and Capital Charges had decreased by (£4.025m) due to a change in the City Corporation adopting the UK Generally Accepted Accounting Practices (UK GAAP).

The Chamberlain took Members through the Markets Operating Statement (Appendix 3 to the report) and explained the impact of the proposed budget changes on each of the three markets. It was further explained that the changes to the calculations for depreciation charges for Smithfield and Billingsgate Markets were necessary for the publication of the City’s Cash accounts. A document was circulated at the meeting providing details of how the depreciation charges were calculated. In response to a question by a Member, the Chamberlain undertook to circulate a note to Members on the difference and breakdown between capital charges and depreciation. A discussion took place on the costs associated with Smithfield Market and it was noted that following the lease renewals it would take five years for the full effect to be seen in the budgets.

It was noted that in future smaller meetings for Members could be arranged in order for Members to discuss the figures in more detail.

In response to a question by a Member, it was agreed that the Chamberlain would circulate a note to the Committee explaining how the costs of the Markets Directorate were split between the three Markets.

RESOLVED – That Members approve the revised revenue budget for 2013/14 for submission to the Finance Committee.