Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

1.           That the current General Fund Revenue Budget forecast of £2.3m overspend be noted.

2.           That it be noted that actions will continue to be taken to mitigate the forecast overspend and that a balanced financial outturn is envisaged.

3.           That the Capital Programme update be noted.

4.           That the proposed use of the Round 2 allocation of Infection Control Grant as set out in Paragraphs 2.47 to 2.52 is approved.

5.           The schemes to be presented to the Mayoral Combined Authority for grant approval and implementation are supported, as set out in paragraphs 2.57.

Consideration was given to the report which set out the financial position as at the end of September 2020 and was based on actual costs and income for the first 6 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 essential to achievement of the objectives within the Council’s Policy Agenda. 

To that end, this was the third 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 September 2020, the Council had a forecast year-end overspend of £23.7m on the General Fund, this was mitigated in part by the Government’s provision of COVID-19 emergency support grant and Sales, Fees and Charges Income Compensation, providing a net forecast outturn of £2.3m overspend.

It was noted the Adult Social Care Infection Control Fund (IPC) was first introduced in May 2020. The purpose of this Fund was to support Adult Social Care providers, including those with whom the Local Authority did not have a contract, to reduce the rate of COVID-19 transmission within and between care settings, in particular by helping to reduce the need for staff movements between sites.

The Council had facilitated the distribution of the specified 80% of the Infection Control Fund as per guidance.  Local authorities must use 20% of the funding to support the sector to put in place other COVID-19 infection control measures, but this could be allocated at their discretion. Where providers had been unable to utilise all their ICF monies this may be added to the discretionary element in accordance with grant conditions.

The report also identified a number of bids to be presented to the Mayoral Combined Authority (MCA) meeting and, subject to them receiving formal approval, the Capital Programme would be updated for the additional grant resources as required and the schemes implemented.

Cabinet Members welcomed the monitoring report and emphasised how crucial the Government grants were in sustaining the level of support.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations, however, should the financial monitoring situation worsen before the submission of the next scheduled Financial Monitoring Report, that a further report be submitted to the Overview and Scrutiny Management Board.

Resolved:-  (1) That the current General Fund Revenue Budget forecast of £2.3m overspend be noted.

(2)  That actions would continue to be taken and noted to mitigate the forecast overspend and that a balanced financial outturn was envisaged.

(3)  That the Capital Programme update be noted.

(4)   That the proposed use of the Round 2 allocation of Infection Control Grant as set out in Paragraphs 2.47 to 2.52 be approved.

(5)  That the schemes to be presented to the Mayoral Combined Authority for grant approval and implementation be supported, as set out in paragraphs 2.57.