Issue - meetings

Purpose of Report

To present the third quarter’s performance on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programme, specifically including the financial impact of the Covid19 pandemic.

Decision

Executive:

1)    Noted the progress on the financial performance for the period October to 31st December 2020 and the projected outturns for 2020/21 and the impact of Covid19 on the Council’s financial position.

2)    Noted the underlying impact of the pressures and underspends identified in paragraphs 3.2 (and Appendix B), 4.3 (and Appendix D) and 5.2 of the report,

3)    Approved the proposed contributions to earmarked reserves as set out in paragraph 3.13 and 3.14 of the report.

4)    Approved the proposed transfer between earmarked reserves as set out in paragraph 6.2.of the report.

5)    Approved the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer and detailed in paragraphs 7.3 and 7.10 respectively of the report.

6)    Approved the changes to the Housing Investment Programme as detailed in paragraph 7.11 of the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

Covid19 had taken its toll on the financial resilience of the Council as income streams had plummeted and there had been a requirement to incur costs to ensure services were being provided throughout this difficult period and to respond to consequences of the pandemic. The impacts of this were not simply restricted to the current financial year but would have a significant impact over the period of the MTFS and possibly beyond

Despite a financial support package announced by the Government the General Fund and HRA could not absorb the level of budget shortfalls without having to take some measures to reduce some areas of expenditure. These measures, approved at Q1, would allow the Council to be able to continue to deliver its critical services and to ensure its balances remained at an adequate level to provide resilience for future years.  

Updates were reported as follows:

General Fund Revenue Account

For 2020/21 the Council’s net General Fund revenue budget was set at £12,963,220, including a planned contribution from balances of £286,310  which resulting in an estimated level of general balances at the year-end of £2,522,188, after allowing for the 2019/20 outturn position.

The General Fund summary was currently projecting a forecast underspend of £122,723, (as set out in Appendix A of the report), resulting in general balance at the year-end of £2,645,911, (subject to any final contributions to earmarked reserves). There were a significant number of forecast year-end variations in income and expenditure against the approved budget, primarily as a result of Covid19 along with variances arising from measures taken to address the budget pressures and the financial support provided by Government. Full details of the main variances were provided in Appendix B while the table below sets out the key variances: