Issue - meetings

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

1.    That the update on the revenue budget financial outturn 2021/22 be noted.

2.    That the Councils progress on the delivery of the Local Council Tax Support Top Up payment be noted.

3.    That the Councils progress on the  ...  view the full agenda text for item 7

Consideration was given to the report which provided an update on a number of financial matters, including those related to Covid-19. It also provided an interim update following the approval of the Budget and Council Tax 2022/23 report at Council on 2nd March, 2022. This was in advance of the  ...  view the full minutes text for item 7

Cabinet Portfolio: Corporate Services, Community Safety and Finance

Strategic Directorate: Finance and Customer Services

The Cabinet Member for Corporate Services, Community Safety and Finance introduced the report explaining it provided an update on financial matters following on from approval of the budget.  It also provided an interim update on the financial outturn prior to the full report being considered by Cabinet in July.

The outturn position reflected positive movement of £4.1m in the directorates outturn positions since the December financial monitoring position.  The main reason for the movements within directorates were indicated within the report.

This positive improvement removed the need for Council to use £1.7m of the budgeted financial reserves to support the outturn position.  The improvements within the directorates forecast outturn represented a positive direction of travel for the Council’s finances, with levels of costs reducing across many of the key service areas and income generation beginning to recover post Covid.  This prudent financial management will be important in managing future budget pressures. 

This was a strong outturn position that included a positive trend of cost reductions within some of the Council’s key services and an increase in £2.4m in budgeted financial reserves.  This placed the Council in a more robust position heading into the 2022/23 financial year and therefore better able to mitigate against any cost pressures that were not evident at the time of setting the budget, such as the war in Ukraine, the significant rise in energy prices and inflation.  This financial position will allow the Council to better manage the impact rather than making cuts to services.   It was expected that the period of high inflation would last for two years before returning to normal levels.

The Assistant Director of Financial Services explained the £2.4m transfer to the reserves was a positive position but it was clarified that the finance pressures that the Council was facing, such as the war in Ukraine and specific Rotherham issues such as the Home to School Transport pressures would be in excess therefore Financial Services were working on a Medium Term Financial Strategy (MTFS) review, to understand what a revised MTFS would look like.  The report also covered a number of updated on key grants the Council was receiving.

In response to a query regarding the Energy Rebate payments it was clarified that the cheque provided in the first instance contained a range of options regarding how it could be processed along with providing options for the cheque to be returned to the Council in order to be paid directly into a bank account rather than cashing the cheque or for it to be issued in another name along with an option to contact the Council for further information.  It was clarified that a small number of people had come forward requesting a cash payment.  Upon further discussions it was suggested that if future energy rebate schemes became available that the Council ensure options for Energy Rebate payments are more widely published in an easy-to-read format.

It was clarified that the Council had provided residents with the ability to provide the Council  ...  view the full minutes text for item 50