Issue - meetings

Purpose of Report

To present the first quarter’s performance (up to 30 June 2021) on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes, and to seek approval for changes to both the revenue and capital programmes.

Decision

(1)  That the progress on the financial performance for the period 1 April 2021 to 30 June 2021 and the projected outturns for 2021/22 be noted.

(2)  That the underlying impact of the pressures and underspends, as identified in paragraphs 3.2 (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 earmarked reserves, as set out in paragraph 3.5 of the report, be approved.

(4)  That the changes to the General Investment Programme and the Housing Investment Programme as approved by the Chief Finance Officer, as detailed in paragraphs 7.4, 7.10 and 7.11 of the report, be accepted and noted.

(5)  That the changes to the General Investment Programme, as detailed in paragraph 7.4 of the report, be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

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 for 2021-26 based on a number of assumptions around the speed and extent of national and local recoveries.  Whilst in many cases these assumptions reflected the actual position to date, there were still some areas where the rate of recovery was impacting adversely on the Council’s finances. Close monitoring of the position and implementation of mitigating actions over quarters two-four would be key to ensuring the Council maintained a balanced budget position for 2021/22.

Updates were reported as follows:

General Fund Revenue Account

For 2020/21 the Council’s net General Fund revenue budget was set at £978,410, including a planned contribution from balances of £477,240 which resulted in an estimated level of general balances at the year-end of £2,193,359 after allowing for the 2020/21 outturn position.

The most significant of these forecast variations related to car parking income, which was currently forecasting a reduction in income of £219,305.  This shortfall had mainly arisen during the first quarter due to the extended national restrictions.  This budget along with all key income budgets was monitored closely and reported to Corporate Management Team on a monthly basis.  

Included in the forecast outturn underspend of £199,432 was a proposed additional contribution to/from earmarked reserves, as detailed at paragraphs 3.6, and 6, and Appendix G, of the report.

Towards Financial Sustainability Programme

The savings target included in the Medium Term Financial Strategy for 2021/22 was £850,000.  Progress against this target, based on quarter one performance, had shown that secured savings totalled £427,040, as summarised at Appendix N of the report.

Housing Revenue Account

For 2021/22 the Council’s Housing Revenue Account (HRA) net revenue budget was set at a £14,910 use of balances, resulting in an estimated level of general balances at the year-end of £1,059,743, after allowing  ...  view the full minutes text for item 30