Agenda item

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 of £1.740m in accordance with the Department for Education regulations be noted.

4.    That the reserves position set out in section 2.32 be noted.

5.    That the capital outturn and funding position as set out in sections 2.40 to 2.57 be noted.

6.    That the report be referred to Council for information and for approval of the updated Capital Programme as set out in paragraphs 2.58 to 2.66 and Appendices 1 to 4 of this report.

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 Account (HRA).  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. 

It was noted that the Council continued to face demand pressures, in particular in respect of social care.  This coupled with the significant financial challenges the Councils response to Covid-19 was expected to bring meant that 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. 

It was reported that 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 which was 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.

It was noted that the report had been submitted to the Overview and Scrutiny Management Board for pre-decision scrutiny on 15th July, 2020, where Members had supported the recommendations in the report and had also proposed that the Overview and Scrutiny Management Board hold a dedicated workshop to consider the financial and service implications of the Covid-19 pandemic.

Resolved:-

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 of £1.740m in accordance with the Department for Education regulations be noted.

4.    That the reserves position set out in section 2.32 of the report submitted be noted.

5.    That the capital outturn and funding position as set out in sections 2.40 to 2.57 of the report submitted be noted.

6.    That the report be referred to Council for information and for approval of the updated Capital Programme as set out in paragraphs 2.58 to 2.66 and Appendices 1 to 4 of this report.

7.    That the recommendations of the Overview and Scrutiny Management Board be endorsed.