Decision details

Purpose of Report

To present the third quarter’s performance (up to 31December 2021), on the Council’s general fund; housing revenue account; housing repairs service; and capital programmes.

To seek approval for contributions to and from earmarked reserves; and to consider a request for a carrying forward a budget. 

To seek approval for changes to both the revenue and capital programmes.

To comply with financial procedural rules, which require the Executive to receive, on a quarterly basis, a report prepared jointly by the Chief Finance Officer and Corporate Management Team, commenting on financial performance to date.

Decision

(1)          That the financial performance for the period 1April to 31December 2021, and the projected outturns for 2021/22 be noted.

(2)          That the assessment of the underlying impact of the pressures and underspends, as detailed in paragraphs 3.3 (and Appendix B), 4.3 (and Appendix D), and 5.2 (and Appendix F) of the report, be noted.

(3)          That the proposed contributions to and from earmarked reserves, as set out in paragraph 3.6, and the proposed carry forward, as set out in paragraph 3.7 of the report, be approved.

(4)          That the changes to the General Investment Programme and the Housing Investment Programme, as detailed in paragraphs 7.4, 7.11 and 7.12 of the report be approved.

Alternative Options Considered and Rejected

As detailed in the report.

Reasons for the Decision

The report covered the General Fund Revenue, Housing Revenue Account budgets and Investment Programmes for the current financial year.  Following the unprecedented impact of Covid-19 on the Council’s finances in 2020/21, budgets for 2021/22 were revised as part of the Medium Term Financial Strategy (MTFS) 2021-26 based on a number of assumptions around the speed and extent of the national and local recoveries particularly in relation to income budgets.  Whilst in many cases these assumptions had reflected the actual position to date and had in fact exceeded assumptions, there were still some areas where the rate of recovery was impacting adversely on the Council’s finances.

In addition, the impact of Covid-19 was still being felt throughout the authority in relation to service delivery both in terms of backlogs of outstanding work but also due to the current economic operating conditions in terms of supply chain issues, escalating costs and availability of labour etc, whilst these issues were being addressed, they were likely to continue in the medium term and impact on the Council’s finances.  Close monitoring of the position and ongoing implementation of mitigating actions over quarter 4 would be key to ensuring the Council maintained a balanced budget position for 2021/22.