Report FSD21021

The report was split into two key elements. Firstly it 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. Secondly, 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 10^th February 2021 had identified a budget gap rising to £14.1m per annum by 2024/25. The report proposed utilisation of any underspends/additional income identified towards providing sustainable income for the future and/or providing transitional financial support in addressing the future years’ budget gap, as well as meeting service cost pressures. 

The Portfolio Holder for Resources, Commissioning and Contract Management, Cllr Graham Arthur, confirmed that £3.7m would be carried forward for long Covid issues, and more than £9m would be carried forward from contingencies which would be focussed on housing priorities.

The report had been scrutinised by the Executive, Resources and Contracts PDS Committee on 24^th 2021 and the Committee supported the recommendations.

RESOLVED that

(A) Financial Monitoring (excluding Covid-19 impact) 

(1) The latest financial position be noted.

(2) The projected net underspend on services of £1,510k forecast based on information as at December 2020 be noted.

(3) The comments from Chief Officers detailed in Appendix 2 to the report be noted.

(4) The full year cost pressures of £9.4m as detailed in section 3.5 of the report be noted.

(5) Council be recommended to agree 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 paragraph 3.2.1 of the report.

(6) The release of £50k from the 2020/21 Central Contingency relating to staff merit awards as detailed in paragraph. 3.3.2 of the report be agreed.

(7) The release of £210k from the 2020/21 Central Contingency relating to Adult Social Care as detailed in paragraph 3.3.3 of the report be agreed.

(8) The release of £424k grant from the 2020/21 Central Contingency relating to Homeless Prevention Initiatives as detailed in paragraph 3.3.4 of the report be agreed.

(9) The return to the Central Contingency of £775k as detailed in paragraph 3.3.5 of the report be noted.

(10) It is agreed that a provision of £350k be set aside to deal with a legal matter, to be met from the 2020/21 Central Contingency Sum as detailed in paragraph 3.3.6 of the report and the part 2 report.

(11) It is agreed that a sum of £150k be set aside to meet the cost of the changes to the Council’s website, funded from the 2020/21 Central Contingency Sum, as detailed in paragraph 3.3.10 of the report. 

(12) Council be recommended that a sum of £9.895m be set aside in the Housing Investment Fund earmarked reserve from monies not utilised in the current year within the 2020/21 Central Contingency Sum, as detailed in paragraph 3.3.12.

(B) Estimated Financial Impact of Covid-19

(13) The latest estimated financial impact of Covid-19 situation, detailed in Section 4 of the report, and the on-going financial uncertainty position relating to net costs, be noted.

(14) The estimated financial impact of the Covid-19 situation, which needs to be treated with some caution at this stage because of the on-going uncertainty arising from the impact of moving out of ‘lockdown’ to transition and ultimately the ‘new normal,’ be noted.