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 position as at the end of May 2021 based on actual cost and income figures for the first two months of 2021/22. It was noted that the report was the first of a series of financial monitoring reports for the current financial year. The Cabinet Member for Corporate Services, Community Safety and Finance, the Assistant Director - Financial Services and the Head of Corporate Finance attended the meeting to present the report.

The report stated that as of May 2021 the Council was expecting to deliver the overall outturn within budget for the financial year 2021/22. It was noted that while the Directorates had a current forecast year end overspend of £5.9m on General Fund expenditure that this should be mitigated by the Government’s provision of COVID-19 emergency support grants and Sales, Fees and Charges Income Compensation.

The report provided a detailed narrative for the budget position of each directorate. The report also provided information on the delivery of previously agreed savings, the position of the Housing Revenue Account, the Covid-19 Local Support Scheme, and the delivery of the Capital Programme.

Members sought further assurance regarding activity around the delivery of previously agreed savings. The Cabinet Member for Corporate Services, Community Safety and Finance assured members that activity was continuing to be conducted across directorates to monitor the activity around, and to ensure the delivery of the required savings.

Members asked for further information on the reduction in the amount spent on older people’s placements. The Cabinet Member advised that the reduction had been due to fewer older people going into care homes and more older people being supported to stay in their own homes for longer.

Members asked for further information on the projected £0.8million overspend that was currently being projected with relation to Central Services. The Assistant Director - Financial Services noted that this figure was currently being projected due to uncertainties around the delivery of some of the required savings identified being delivered in the current financial year. The Assistant Director advised however that this overspend would most likely be mitigated by increased savings linked to Treasury Management activity that had not yet been factored into the projections.

Members asked how confident officers were on the assumptions that had been used in the current financial projections. The Assistant Director advised that the assumptions that had been used were based on officer’s best professional judgment on the current available information, and that as the year went on the projections would be firmed up as more confirmed figures and financial information became available.

Members asked for further information surrounding the upgrade, reopening and use of neighbourhood centres. The Leader, who was in attendance at the meeting advised that neighbourhood centres would be reopening imminently and assured members that the financial forecasts had factored in their temporary closure and the corresponding adjustment of tenant’s rents. The Leader advised the Cabinet Member for Social Inclusion was currently looking at how the neighbourhood centres could be most effectively utilised in the future.

Members sought assurance about the programme to upgrade council housing across the Borough that had been severely impacted and delayed due to the pandemic. The Leader noted the enormity of the programme of works and assured members that work was ongoing to get the programme of improvements back on track.

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

Resolved: -

1.    That Cabinet be advised that the recommendations be supported.

2.    That a report be presented at a future meeting of the Overview and Scrutiny Management Board that details how the changes that have been made to how the Council operates and provides services as a result of the pandemic have informed budget management procedures, and whether these changes to how the Council operates have highlighted any new opportunities where future budget savings could potentially be made.

3.    That further information on the budget processes and on the assumptions used to determine staffing budgets across all directorates be circulated to members of the Overview and Scrutiny Management Board.