Issue - meetings

To consider a recommendation from Cabinet to note the revenue outturn position and approve the updated Capital Programme.

Further to Minute No. 31 of the meeting of the Cabinet held on 20^th July, 2020 consideration was given to the report which detailed how the final outturn position was a balanced budget which required £2.0m less use of corporate reserves than planned for.  The original budget was supported by budget contingency reserves of £3.2m.  Additional funding received in year, use of earmarked reserves and flexible use of capital receipts had resulted in a reduced call on the reserves of £1.2m leaving a balance of £2.0m to support the budget in later years. 

The Council continued to face demand pressures, in particular in respect of Social Care.  This coupled with the significant financial challenges the Council’s response to Covid-19 would bring, as reported in detail to Cabinet in June 2020, meant the outlook was very challenging.

The Council’s General Fund minimum balance had been increased to £20.700m as planned and set out within the Council’s Reserves Strategy reported in the Budget and Council Tax Report 2020/21.  The reserve was held to protect the Council against unforeseen events and realisation of contingent liabilities. 

The Housing Revenue Account had an underspend of £2.9m, however, the revenue contribution to capital outlay was increased by £0.2m. Therefore, the net budgeted use of HRA reserves reduced by £2.7m.

The schools outturn position, funded by the ring-fenced Dedicated Schools Grant had an underspend of £1.968m.

The capital outturn showed slippage and underspend of £6.3m against the estimated spend for 2019/20 included within the Capital Programme.

Councillor Carter regarded this typically as overspending on the budget with huge overspends in Children’s Services during 2019/20 before the COVID-19 pandemic. This administration was trying to claim the financial outturn was a success when it was just fudging figures in the budget and in the statement presented.  It was clear the Council could not manage a budget, failed to meet its obligations year after year and used precious reserve funds.  If it could not  manage a budget last year what hope did it have in managing one in the middle of global pandemic.  He was, therefore, unable to support the report.

Councillor Alam explained the Council had worked through difficult circumstances and simply could not predict numbers of children or adults who needed support and had to meet its obligations.  It was disheartening when colleagues made political comments rather than working to move the town forward.

Councillor Cowles supported Councillor Carter’s comments.  Comparatively Barnsley was able to manage its budget and was underspent in areas of  Adults and Children’s Social Care.  This just highlighted the failure of this organisation to stick to rigorous management processes and indicated a clear failure of management.

Councillor Alam reiterated that with the overspends in both adult and children’s social care both Cabinet Members had worked tirelessly to deliver to vulnerable groups and this Council would not allow legacy issues to return or let vulnerable people down.

Resolved:- (1)  That the updated financial position as detailed in the report be noted.

(2)  That  ...  view the full minutes text for item 389

Report of the Strategic Director of Finance and Customer Services

Recommendations:

1.    That the revenue outturn position be noted. 

2.    That it be noted that the budgeted transfer from HRA reserves was reduced by £2.7m following the HRA outturn position.

3.    That the carry forward of the combined schools balance  ...  view the full agenda text for item 31

Consideration was given to a report which outlined the final revenue and capital outturn position for 2019/20. It was reported that the Revenue Budget 2019/20 was approved by Council on 27th February, 2019.  A budget of £221.1m was set for General Fund services; which excluded schools budgets and Housing Revenue  ...  view the full minutes text for item 31

Cabinet Portfolio:                 Corporate Services and Finance

Strategic Directorate:           Finance and Customer Services

Consideration was given to a report which outlined the final revenue and capital outturn position for 2019-20 that was submitted for pre-decision scrutiny ahead of the Cabinet meeting scheduled for 20 July 2020.

The Cabinet Member for Corporate Services and Finance, Assistant Director – Financial Services and Head of Corporate Finance attended the meeting to present the report and to answer members’ questions.

The final outturn position was a balanced budget which required £2.0m less use of corporate reserves than planned for.  The original budget was supported by budget contingency reserves of £3.2m. Additional funding received in year, use of earmarked reserves and flexible use of capital receipts resulted in a reduced call on the reserves of £1.2m leaving a balance of £2.0m to support the budget in later years.

A summary of the outturn position for each Directorate was detailed in the report, together with the actions and measures taken to deliver a balanced budget.  The Council continues to face demand pressures, in particular in respect of social care.  This coupled with the significant financial challenges the Council’s response to Covid-19 would bring, meant the outlook remained very challenging.

The Council’s General Fund minimum balance had been increased to £20.700m as planned and set out within the Council’s Reserves Strategy reported in the Budget and Council Tax Report 2020/21. The reserve was held to protect the Council against unforeseen events and realisation of contingent liabilities.

The Housing Revenue Account (HRA) was increased by £0.2m. Therefore, the net budgeted use of HRA reserves reduced by £2.7m. The schools’ outturn position, funded by the ring-fenced Dedicated Schools Grant, had an underspend of £1.968m. The capital outturn showed slippage and an underspend of £6.3m against the estimated spend for 2019/20 included within the Capital Programme.

Members questioned plans to support and sustain services in Regeneration and Environment as a number of these had been affected significantly by the Covid-19 pandemic.  Officers confirmed that in relation to various aspects they were awaiting the financial position from Government.  Two tranches of funding had been received as shown in the report and although a third tranche for £500m had been announced no details of individual local authority allocations were known.  There had been a shift in how the Government was proposing to compensate for the costs of Covid-19, for additional costs and a separate arrangement regarding lost income. Details for a sharing arrangement  between local authorities and Government would be confirmed.  Regeneration and Environment had lost income, fees and charges; therefore the details of the sharing arrangement were awaited to see what it would mean and what compensation would be available before any other actions were taken.   Budgets had already been amended in light of some over-ambitious targets set previously.

More specifically, as Culture, Sport and Tourism had been particularly impacted by the pandemic, officers were asked about plans for recovery for the Civic Theatre, Gulliver’s and the Country Parks.  Services were working on recovery plans and options but several unknowns remained such as when  ...  view the full minutes text for item 191