Agenda item

Cabinet Portfolio: - Corporate Services, Community Safety and Finance

Strategic Director: - Finance and Customer Services

Consideration was given to a report that was submitted for pre-decision scrutiny ahead of the Cabinet meeting scheduled for 19 July 2021 that detailed the Council’s Financial Outturn for 2020/21. The Leader of the Council, the Assistant Director - Financial Services and the Head of Corporate Finance attended the meeting to present the report.

The report detailed the final revenue and capital outturn position for 2020/21 and also provided information on the Council’s reserve balances as at the end of the financial year.

The report stated that the Council had had a final underspend against its approved budget of £6.1m, following mitigating actions taken to manage the significant financial impacts of Covid-19. The report also noted the late receipt of £2m of Government support towards the ongoing costs associated with Operation Stovewood. It was noted that significant uncertainty remained around the financial consequences of the pandemic, potential restrictions, further in-year pressures on the Council’s budget and on future Government funding support. As such a prudent use of the underspend was being proposed in order to address these ongoing risks during the financial years 2021/22 and 2022/23.

A summary of the outturn position for each directorate was also included in the report along with an accompanying narrative on any budget varaiances. The report also provided information on the Housing Revenue Account (HRA) and the Council’s Capital Programme.

In introducing the report, the Leader noted the significant financial impact of the pandemic on the Council in many areas such as increased spending on PPE, increased costs related to waste disposal as people spent more time at home, the reduction in income to the Council and how activity focussed on the pandemic had delayed the delivery of previously agreed savings. The Leader also noted that while the pandemic had been financially challenging for the Council that due to strong budget management before and during the pandemic that the Council was in a relatively strong financial situation.

Members sought assurance regarding the underspend on the activity linked to the HRA. The Leader assured members that the work that had been delayed due to the pandemic that had created the underspend was being reprofiled and that all planned spending from the HRA would be delivered.

Members asked for further information on the apparently large figures in the outturn position of the Central Services budget. The Leader advised that Central Services was used as a budget area for the processing and recording of many things including corporate charges and Government grants, and as such the reported figures for this budget area would appear to be a large figure.

Members asked whether the Council’s response to the pandemic had highlighted any opportunities regarding how services were delivered that could enable future savings to be made. The Leader noted that the decision to redeploy staff during the pandemic had been an effective use of resources and advised that learning from the pandemic on how services could most effectively be delivered would be highlighted by individual services as part of the annual budget setting process.

Members asked with regard to the policy during the pandemic of paying care providers set payments that would have resulted in providers being paid for more hours than they had delivered to service users, whether there were any plans to recoup any overpaid money from the care providers. The Leader noted that the revised approach to payments to care providers during the pandemic had resulted in overpayments being made. The Leader advised however that it had been essential to support care providers who would have experienced increased costs during the pandemic so as to ensure that they were able to continue to deliver services, and as such there were no plans to recoup any overpayments. 

Members asked for further information on the Central Services budget. The Assistant Director - Financial Services advised that work was continuing to reduce the number of individual budgets held in the Central Services area and that further information could be provided as required on the different budgets that were included under the Central Services budget heading.

Members noted with approval that while the pandemic had been financially challenging for the Council that due to strong budget management before and during the pandemic that the Council was in a relatively strong financial situation. Members also noted how effective the redeployment of staff had been with regard to both service delivery and efficient budget management and control.

Members asked if there were any current predictions on when the Council would return to a more normal way of operation and budget management. The Leader noted his thanks to all staff who had worked throughout the pandemic and in different roles that had ensured residents had been able to access the services and support that they needed. The Leader advised that there was however still much uncertainty with regards to the ongoing impact of the pandemic, and as such he was unable to predict when the Council would finally return to a more normal way of operation and budget management. The Head of Corporate Finance advised that there were still many financial unknowns in many areas related to the pandemic that made future budget planning uncertain, and as such it was important that the Council maintained adequate reserves as a mitigation against the ongoing uncertainty.

Members noted the ongoing impact of austerity and the impact that Government cuts had had on council services. Members noted their concern on how the cuts to services had negatively impacted on accessibility to services and the subsequent impact on equalities. Members asked whether the Equality Impact Assessments that were included in all decision-making reports could be refocussed to incorporate accessibility issues. The Leader noted the positive step that having Equality Impact Assessments had been but noted their limitations in being focused on specific reports that made incorporating broader issues like accessibility more difficult.

The Chair thanked the Leader, the Assistant Director - Financial Services and the Head of Corporate Finance for attending the meeting and answering member questions.

Resolved: -

That Cabinet be advised that the recommendations be supported.