Report FSD21044

The Executive received a report providing the first budget monitoring position for 2021/22 based on expenditure and activity levels up to the end of May 2021. The report also highlighted significant variations which would impact on future years as well as early warnings that could impact on the final year end position. Future monitoring reports would provide an update on the COVID grant position.

The Leader commented that central Government had provided funding to support the ongoing impact of Covid-19, but the level of debt built up meant that funding would need to be reduced at some point. The Director of Finance confirmed that there was no certainty that Covid funding would continue and officers were lobbying the Ministry of Housing, Communities and Local Government (MHCLG) on this issue.  Councillor Graham Arthur, Portfolio Holder for Resources, Commissioning and Contract Management suggested that officers should circulate the four page presentation document to all members.

The Director of Finance reported that there was evidence of cost pressures building up. A contingency for inflation of 2% per annum was already built into the financial forecast for the next four years, and there was provision in the budget for risk and uncertainty which took account of the possibility of a spike in inflation this year. 

RESOLVED that

(1) The latest financial position be noted.

(2) The projected net overspend on services of £2,027k, forecast based on information as at May 2021, be noted.

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

(4) The carry forwards being requested for drawdown be noted and the approach for drawdown as set out in paragraph 3.3 be approved.

(5) The projected reduction to the General Fund balance of £2,843k as detailed in section 3.4 of the report be noted.

(6) The full year cost pressures of £4.961m as detailed in section 3.5 of the report be noted.

(7) The release of £315k from the 2021/22 Central Contingency relating to rough sleepers initiative grant as detailed in paragraph 3.2.2 of the report be agreed.

(8) The release of £324k from the 2021/22 Central Contingency relating to Tackling Troubled Families (Supporting Families) grant as detailed in paragraph 3.2.3 of the report be agreed.

(9) The release of £35k from the 2021/22 Central Contingency relating to Domestic Abuse Grant as detailed in paragraph 3.2.4 of the report be agreed.

(10) The release of £113k from the 2021/22 Central Contingency relating to Accommodation for Ex-Offenders Grant as detailed in paragraph 3.2.5 of the report be agreed.

(11) The release of £100k from the 2021/22 Central Contingency relating to Virtual School additional duties as detailed in paragraph 3.2.6 of the report be agreed.

(12) The release of £22k from the 2021/22 Central Contingency relating to Reducing Parental Conflict Grant as detailed in paragraph 3.2.7of the report be agreed.

(13) The additional contribution to the Business Rates Adjustment earmarked reserve relating to the timing differences of grant income received and the costs charged to the Council’s General Funds detailed in paragraph 3.10 of the report be noted.