Agenda item

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

That Cabinet

1.    Note the current General Fund Revenue Budget forecast of a balanced budget.

2.    Note that actions will continue to be taken to ensure that a balanced financial outturn is delivered.

3.    Note the Capital Programme update.

4.    Approve the extension of the Local Council Tax Support Top Up to include new claimants of Local Council Tax Support during 2021/22 who were not eligible on 4 December 2021, as per section 2.45.

Consideration was given to the report which set out the financial position of the Council as at the end of December 2021 and was based on actual costs and income for the first 9 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. As such, this was the fifth financial monitoring report of a series of reports for the current financial year which would continue to be brought forward to Cabinet on a regular basis.

As at December 2021, the Council expected to deliver the overall outturn within budget for the financial year 2021/22. Whilst the Directorates had a forecast year-end overspend of £8.2m on the General Fund, this was mitigated by the Government’s provision of COVID-19 Emergency Support Grant and Sales, Fees and Charges Income Compensation. However, it was noted that the longer term impacts of Covid-19, Public Health measures and the pace at which services could return to normal, was unknown. This was further exacerbated by current uncertainties brought about by the Omicron variant that may lead to further financial implications for the Council.

The 2021/22 Budget was supported by the use of £7.5m from the Budget Strategy Reserve. However, following detailed work to assess the financial impacts of Covid-19 on 2021/22, the Council estimated that the costs and income losses as a result of Covid-19 would be in excess of the resources provided by Government for the financial year £8.3m, the Emergency Support funding carried forward from 2020/21 of £5.3m and the Sales, Fees and Charges Income Compensation of £0.4m. Therefore, it was deemed appropriate to utilise during 2021/22 the maximum amount of Covid funding eligible. This was likely to mean that not all of the Budget Strategy Reserve 2021/22 would be required and, therefore, any balance remaining would be left in the Council’s reserves. This was anticipated to be in the region of £5.8m.

The Capital Programme 2021/22 totalled £144.347m split between the General Fund (£92.171m) and the HRA (£52.176m.) This was a decrease of £27.614m to the position as at the end of November 2021 reported to Cabinet in January 2022. The majority of the decrease related to the reprofiling of schemes due to delays caused mainly from COVID-19 and the high volume of capital activity taking place nationally that was straining resources from an internal and external delivery point.

Authority had been delegated to the Assistant Chief Executive, in consultation with the Cabinet Member for Social Inclusion, to determine revised and final allocations for the Household Support Grant including provision to include new claimants of Council Tax Support who were not eligible on 4th December, 2021. However, based on the current caseloads of Council Tax Support claimants, it was unlikely that the remaining funds available from the Household Support Grant would be sufficient. The additional cost was expected to be around £200-300k and would therefore be funded from elsewhere within the Council’s budgets.

The report had been considered by the Overview and Scrutiny Management Board as part of the pre-decision scrutiny process and they noted and agreed with the recommendations.

Resolved:-

That Cabinet:

1.    Note the General Fund Revenue forecast of a balanced budget.

2.    Note that actions will continue to be taken to ensure that a balanced financial outturn is delivered.

3.    Note the Capital Programme update.

4.    Approve the extension of the Local Council Tax Support Top Up to include new claimants of Local Council Tax Support during 2021/22 who were not eligible on 4th December, 2021, as per section 2.45 of the report.