Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 30 March 2022.

The Committee considered the following reports on the Part 1 agenda for the meeting of the Executive on 30 March 2022:

The report provided the second budget monitoring position for 2021/22 based on expenditure and activity levels up to the end of December 2021. The report also highlighted any significant variations which will impact on future years as well as any early warnings that could impact on the final year end position. This report also provides an update on the COVID grant position.

The Director of Finance introduced the report and explained that Officers were grateful for the support and sense of urgency from Members in respect of the Ukrainian Refugee Scheme.  On Monday 28 March 2022, a Gold (highest priority) meeting would take place to discuss the situation and the arrangements to be put in place.  Officers would also begin to visit sponsor homes.  The issue of Police checks had been raised with the Home Office and there was an obligation on local authorities to undertake safeguarding checks. In addition, discussions were taking place concerning the long-term impact of the refugee crisis.  It was recognised that a cross-departmental approach was required as refugee families would need support from a range of services.  A review would be undertaken concerning how existing staff could be utilised to support the Council’s response.  As well as looking at accommodation, consideration would need to be given to facilitating community facilities where families would be able to meet.

The Committee noted that a further update would be provided to the Executive on 30 March 2022, and this would give an indication of capacity issues.  The Director of Finance highlighted that it was not possible to predict numbers however it was clear that there would be a number of challenges to be overcome and further challenges the longer the crisis continued.  The Committee noted that refugees arriving in the UK would have access to work and full benefits.

In response to a question, the Director of Finance confirmed that the £10,500 funding provided by the Government was intended to last for a period of one year and would then be reviewed.  The situation was currently very fluid and there would be a quarterly monitoring process.  The intention of the Council was to manage the costs of the refugee crisis as separate from the wider Council budget.

Turning to other issues in the budget, the Chairman noted that the impact on rental income as a result of the Covid pandemic was unsurprising.  The Chairman also requested that the Director of Corporate Services and Governance provide an update on the cost pressures arising from balancing internal legal advice and advice from external Counsel.

In relation to ongoing inflationary pressures, the Director of Finance confirmed that the Council had budgeted for 4% inflation which at the time had seemed generous.  In terms of funding, the Council had received inflationary increases of between 2.5% and 3% which was much lower than the current reality.  With current inflationary pressures in excess of 7% the increased costs to the Council amounted to approximately £8m and although contingencies were in place, this was something that would need to be closely monitored.  Members noted that it was likely that deglobalisation factors would put pressure on future budgets which would, in turn, impact on the Medium Term Financial Strategy (MTFS).  Contingencies had been built into budgets to manage some of the pressures but there would undoubtedly be future challenges.  The Director of Finance confirmed that, to date, there was nothing additional built into the local authority settlement and this meant that inflation would have a significant impact.

The Committee noted that there was some additional support for vulnerable families through the Household Support Fund and the Council Tax rebate scheme.

RESOLVED:

(a)  That Executive be recommended to:

1.  Consider the latest financial position;

2.  Note that a projected net overspend on services of £1,208k is forecast based on information as at December 2021.

3.  Consider the comments from Chief Officers detailed in Appendix 2 of the report;

4.  Note a projected reduction to the General Fund balance of £24k as detailed in section 3.4 of the report;

5.  Note the full year cost pressures of £11.884m as detailed in section 3.5 of the report;

6.  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 2021/22 Central Contingency sum as detailed in para. 3.2.2 of the report;

7.  Note the sum agreed at Council of £1m set aside in a Platinum Jubilee Parks earmarked reserve, funded from the 2021/22 Central Contingency as detailed in para. 3.2.3 of the report;

8.  Recommend to Council that a sum of £4.605m is set aside in a Contribution to Collection Fund Surplus Earmarked Reserve as detailed in para. 3.2.4 of the report;

9.  recommend to Council that a sum of £2.900m is set aside in a Capital Fund earmarked reserve, funded from the 2021/22 Central Contingency as detailed in para. 3.2.5 of the report;

10.Recommend to Council that a sum of £1.242m is set aside in the Housing Investment Fund earmarked reserve, funded from the 2021/22 Central Contingency as detailed in para. 3.2.6 of the report;

11. Agree to the release of funds from the central contingency as detailed in paragraphs  3.2.7 to 3.2.16 of the report;

12.agree to the carry forward requests as detailed in para. 3.3 of the report;

13.Agree the funding requirement of the Property team as detailed in paragraph 3.10 of the report;

14.Note the COVID allocation and expenditure in Appendix 7 of the report;

15.Identify any issues that should be referred to individual Portfolio Holders for further action.

(b)  That Council be recommended to:

1.  Agree a sum of £4.605m is set aside in a Contribution to Collection Fund Surplus Earmarked Reserve as detailed in para. 3.2.4 of the report;

2.  Agree a sum of £2.900m is set aside in a Capital Fund earmarked reserve, funded from the 2021/22 Central Contingency as detailed in para. 3.2.5 of the report;

3.  Agree a sum of £1.242m is set aside in the Housing Investment Fund earmarked reserve, funded from the 2021/22 Central Contingency as detailed in para. 3.2.6 of the report.