Agenda item

Paul Clarke, Director of Finance was present, together with the Executive Member, Finance, Performance and Resources, Councillor Gill, and outlined the report

During consideration of the report the following main points were made –

·         The budget forecast remains uncertain at this stage, and the COVID 19 pandemic, will continue to have an effect on the Council’s budget for the foreseeable future. There is a need to maintain and increase the resilience in the Council finances and reserves to reflect hardening budget risks

·         Overall the General Fund is currently forecasting total budget fund pressures of £24.95m. This is an increase of +£2.223m since the previous reported position, primarily due to adverse movements in the Environment and People directorates. After the allocation of available COVID funding and an assumed allocation from contingency, this reduces to a forecast net overspend of +£0.894m

·         Noted at present there are no forecast Council tax or business rates income budget variances

·         The HRA is forecasting an in year surplus, and this is unchanged from the previous reported position

·         At end of month 5 capital expenditure of £29.345m had been incurred against a total full year forecast of £169.082m, and against the revised expenditure budget of £203.222m. It is expected that the capital expenditure will be re-profiled for approval between financial years for approval in subsequent budget monitoring exercises

·         Noted that the Council were in terms of the medium term financial plan in a similar financial position as pre COVID and needed to achieve £25m of savings

·         Noted that the Local Government pay award which has not yet been agreed, would add to the budget deficit as it had been assumed that there would not be a pay award in 2021/22

·         In response to questions it was stated that information on the reasons for the increase in costs in the vehicle fleet management costs would be circulated following the meeting, together with the reasons for the increase in the substance misuse budget

·         It was stated that there were economic risk factors such as rising energy costs, inflation and increases in Adult Social Care and Children’s Social Care costs. It was stated that there had been an increase in the sexual health budget due to the changing method  of providing the service due to COVID

·         A Member enquired whether the increase in rents of would provide additional capital, and it was stated that the capital programme was looked at over a number of years

·         Reference was made to Council tax collection, and that with regard to arrears these were higher in those residents who were on the Council Tax support scheme

·         In response to a question it was noted that decisions on increases in parking charges would be looked at as part of the budget making process

·         Noted that decisions were taken in consultation with Members as to whether services needed increases in funding due to COVID

RESOLVED:

That the report be noted and that Councillor Russell be informed of the reasons for the increase in vehicle management fleet costs, and those related to substance misuse

The Chair thanked Paul Clarke and Councillor Gill for attending