Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report which set out the final financial position for the Council for 2020/21, covering the position for both revenue and capital and providing an analysis of the variances, both under and overspending.
In response to Members’ questions, it was noted that grants received over the past year covered the initial cost implications from Covid but were a one-off and so ongoing challenges and budgetary pressures remained. Internal governance was improving, reflected in audit reports, and would be finalised now the permanent Director of Finance post had been appointed to. Finally, it was noted that the Council needed to get back to collecting as much Council Tax and Business Rates as possible, whilst still being sensitive to the ongoing impacts the pandemic had on residents, businesses and communities.
1. Note the final underspend on the revenue budget of £13.605m. It should be noted that £11.1m was always planned due to the reduced contribution to the pooled fund of £10.5m and the £567k planned contribution to the general fund. The balance is as a consequence of the very late receipt of Government funding during 2020/21 to support the financial impacts of the pandemic.
2. Note that the £10.5m reduced contribution to the pooled fund was agreed at the end of the last financial year, when the Council made an additional contribution to the pool of the same value as a mechanism of accessing additional funding for the CCG;
3. Approve the net allocation to reserves of £48.982m and note that this is factored into the out-turn position;
4. Note the Covid 19 reserve for future use for Covid 19 cost pressures in addressing the ongoing impacts of the pandemic on the vulnerable residents of our population and supporting Council services where there are losses of operating income;
5. Note the final position on the collection fund;
6. Note the final position on reserves of £130.172m at the end of 2020/21, split £74.849m general, £67.885m earmarked and (£12.562m) schools;
7. Note expenditure of £27.233m on capital programmes during the year and the outcomes achieved;
8. Note the slippage of £13.297m on the capital programme and approve that this can be carried forward and added to the 2021/22 capital programme.
9. Note that the final treasury management outturn report will be presented to Cabinet in September 2021.
Reasons for the decision:
The continuation of the Covid pandemic and the additional measures that have been put in place, both nationally and across the Greater Manchester region, in response to this has impacted significantly on demand for services and loss of income. There remain some considerable challenges as a result of COVID-19 and the use of available funding and the impact on the financial position in 2021/22 will need continuing close monitoring.
Other options considered and rejected:
Publication date: 25/07/2021
Date of decision: 21/07/2021
Decided at meeting: 21/07/2021 - Cabinet