Issue - meetings

A report from the Leader and Cabinet Member for Finance and Growth is attached.

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report which outlined the forecast financial position of the Council at the end of 2021/22 based on the information known at the end of the first quarter, 30 June 2021. The report set out the position for both revenue and capital and provided an analysis of the variances, both under and overspending.  An accompanying Covid spend briefing report and the Treasury Management Outturn report were circulated to Members prior to the meeting.

In considering the reports circulated, Member raised the following issues:

With regards to the £10.25 million not spent in the last financial year, the Leader reported that this money was received late in the financial year and was set aside for ongoing response to Covid including the containment outbreak management fund and Business grants support for business recovery.

The Leader reported that the Council received £79,946,000 to support business in the Borough, to date £76 million has been spent.  ARG phase 3 will target those business where recovery has been most uneven, for example, the events industry.

The Leader confirmed the statement of accounts are expected to be signed off at the end of November, the information was submitted by the Council on time but the delay is as a result of capacity issues with the external auditors Mazars.

With regards to the £82,400 set aside to approve customer response, the Leader reported that this will be utilised for staffing and additional software/improved technology.  This is currently a non-recurring cost, addressing a short term need, if successful, Officer would be encouraged to develop a invest to save/invest to grow business case.

With regards to the Collection Fund the Leader reported that a Central Government rule change now allows, Councils to retain 66% rather than 100% of the business rates.  The Q3 financial monitoring report will provide further information with regards to business rates including the impact of the changes.

With regards to the increase in reserves from £51.06m to £74.84m the Leader reported that this was a result of; an increase payment by the CCG into the pooled budget, a review of the collection fund received more than predicated lump and headroom of £5.8m for the transformation reserve.

Going forward it is expected that the reserves will reduce because of pressure on the revenue budget and there still remains a significant gaps in the Council finance thus placing greater demands on the reserve budget.

It was agreed:

The content of the report be noted and Councillor O’Brien be thanked for his attendance. 

A Covid monies update report will be considered at a future meeting of the Overview and Scrutiny Committee.

A report from the Leader and Cabinet Member for Finance and Growth is attached.

Councillor Eamonn O’Brien, the Leader of the Council and Cabinet Member for Finance and Growth, presented the report which outlined the forecast financial position of the Council at the end of 2021/22 based on the information known at the end of the first quarter, 30 June 2021. The report set out the position for both revenue and capital and provided an analysis of the variances, both under and overspending. In response to Members’ questions, it was noted that the issues with waste collections, including the redesign, staff absences, and HGV driver shortages, were not accounted for in this period. Spend would be affected but savings would still be achieved in the long-term. In terms of the transformation plan, the realisation of those savings was delayed as changes couldn’t be made as quickly as expected, but progress was being made with a report later in the agenda.

Decision:

Cabinet:

1.   Noted the forecast overspend of £3.053m within the revenue budgets at quarter 1 and the need for Directorates to work with their finance business partners to identify mitigating actions to bring budgets back into line;

2.   Noted the use of the Covid Outbreak Management Fund and Departmental Reserves in line with the criteria and one off departmental priorities;

3.   Approved the use of the Corporately held waste levy reserve for the items specified against this funding in Appendix 2;

4.   Noted the position on the Dedicated Schools Grant, Collection Fund and the Housing Revenue Account;

5.   Noted forecast position on the capital programme.

Reasons for the decision:

To ensure the Council’s budgetary targets are achieved.

Other options considered and rejected:

N/A