The
Committee considered the following reports on the Part 1 agenda for
the meeting of the Executive on 31 March 2021:
(5) BUDGET MONITORING
2020/21
Report FSD21021
The report provided the third budget monitoring
position for 2020/21 based on expenditure and activity levels up to
the end of December 2020, excluding
the financial impact of Covid-19. The report also
highlighted any significant variations which would impact on future
years as well as any early warnings that could impact on the final
year end position. In additon the report identified latest
indications of the financial impact of the Covid-19 situation which
needed to be treated with some caution at this stage because of the
ongoing
uncertainty arising from moving out of lockdown to
transition and ultimately the ‘new normal’.
The Council Tax report 2021/22 to Executive on 10th
February 2021 identified a budget gap rising to £14.1m per
annum by 2024/25. The report before the Committee proposed
utilisation of any underspends/additional income identified in the
report towards providing sustainable income for the future and/or
providing transitional financial support in addressing the future
years’ budget gap as well as meet service cost
pressures.
RESOLVED: That Executive be recommended
to:
-
consider the latest financial
position;
-
note that a projected net underspend on services
of £1,510k is forecast based on information as at December
2020.
-
consider the comments from Chief Officers
detailed in Appendix 2;
-
note the full year cost pressures of £9.4m
as detailed in section 3.5 of the report;
-
recommend to Council that a sum of £3.767m
be set aside as a contribution to the provision for COVID related
service pressures in future years (earmarked reserve) as detailed
in para. 3.2.1 of the report;
-
agree the release of £50k from the 2020/21
Central contingency relating to staff merit awards as detailed in
para. 3.3.2 of the report;
-
agree the release of £210k from the 2020/21
Central contingency relating to Adult Social Care as detailed in
para. 3.3.3 of the report;
-
agree the release of £424k grant from the
2020/21 Central contingency relating to Homeless Prevention
Initiatives as detailed in para. 3.3.4 of the
report;
-
note the return to the Central Contingency of
£775k as detailed in para. 3.3.5 of the
report;
-
agree to set aside a
provision of £350k to deal with a legal matter (see Part II
of the agenda) to be met from the 2020/21 Central Contingency Sum
(see 3.3.6 of the report)
-
agree to set aside a sum of £150k to meet
the cost of the changes to the Council’s website, funded from
the 2020/21 Central Contingency Sum (see 3.3.10 of the
report)
-
recommend to Council
that a sum of £9.895m is set aside in the Housing Investment
Fund earmarked reserve from monies not utilised in the current year
within the 2020/21 Central Contingency Sum (see 3.3.12 of the
report)
-
identify any issues that should be referred to
individual Portfolio Holders for further action.
-
consider the latest
estimated financial impact of Covid-19 situation, detailed in
Section 4, and note the ongoing financial uncertainty position
relating to net costs;
-
note that the
estimated financial impact of the Covid-19 situation which needs to
be treated with some caution at this stage because of the ongoing
uncertainty arising from the impact moving out of
‘lockdown’ to transition and ultimately the ‘new
normal’.
That Council be recommended to:
-
agree a sum of £3.767m as a provision for
COVID related service pressures in future years (earmarked reserve)
as detailed in para. 3.2.1 of the report;
-
agree a sum of
£9.895m is set aside as a Housing Investment Fund earmarked
reserve (see 3.3.12 of the report).