Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

1.           That the current General Fund Revenue Budget forecast of £3m overspend be noted.

2.           That it be noted that actions will continue to be taken to mitigate the forecast overspend.

3.           That the Capital Programme update be noted.

Consideration was given to the report which set out the financial position as at the end of July 2020 and was based on actual costs and income for the first four months of 2020/21 and forecast for the remainder of the financial year.

Financial performance was a key element within the assessment of the Council’s overall performance framework and was essential to achievement of the objectives within the Council’s Policy Agenda. 

To that end, this was the second financial monitoring report of a series of monitoring reports for the current financial year which would continue to be brought forward to Cabinet on a regular basis.

As at July 2020, the Council had a forecast year-end overspend of £21.9m on the General Fund, this was mitigated in part by the Government’s provision of COVID-19 support grant of £18.9m, providing a net forecast outturn of £3m overspend.

It was also noted that at the time of the report being written the guidance had not been received in terms of the support grant and mitigating income, but this would now be worked through.  It was uncertain how long the implications of the Pandemic would go on for and estimates were based on real issues and how this played into next year and future years.  This would also have a substantial impact on delivery of savings this and there were lots of interrelated issues and the non-delivery of savings that also needed to be worked through.

A further report would be submitted to Cabinet in November where more would be known about income grant and how this could be built into plans in order to move forward.  The Government settlement would not be received until late in the year and this would then play through into the budget.  It was hoped plans would remain on track with the uncertainly more around the medium term than the current year in a financial sense.

Resolved:-

(1)  That the current General Fund Revenue Budget forecast of £3m overspend be noted.

(2)  That actions, continuing to be taken to mitigate the forecast overspend, be noted.

(3)   That the Capital Programme update be noted.