Issue - meetings

The Executive Member for Finance and Governance and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to provide an overview of the Council’s financial position at Quarter Three 2020/21, including the projected effect of Covid-19 on the Council’s finances.

As reported in previous reports, the Covid-19 pandemic was having a significant impact on the Council’s financial position. Covid-19 financial pressures were being monitored separately from the normal non-Covid-19 financial position, and those were reported separately in paragraphs 44 to 72 of the submitted report.

The 2020/21 Revenue budget for the Council was £116,397,000. A revised senior management structure within the Council was implemented during Quarter One and the financial position was reported against that new structure. The Council’s outturn position for 2020/21 for non-Covid-19 elements was projected to be an underspend of £294,000 (-0.25%). The split by Directorate was shown in the table above paragraph 8 of the submitted report.

That when added to the estimated Covid-19 pressures of £3.090m, detailed in paragraphs 44 to 72, resulted in a total projected outturn pressure at year end 2020/21 of £2.796m. That was a reduction in the total projected outturn pressure of £1.609m from the £4.405m reported at Quarter Two. The overspend in 2020/21 would be covered by the General Fund Reserve as approved by Council on 2 September 2020.

The detail of the variances was set out in paragraphs 10 to 42 of the submitted report. At Quarter Three, 35 areas were projected to be spent +/- £150,000 of the agreed budget.

ORDERED

1.     That the 2020/21 revenue budget Quarter Three total projected outturn of £2.796m, representing a £294,000 (-0.25%) underspend on non-Covid-19 elements, and the estimated financial effect of Covid-19 in 2020/21 of £3.090m be noted, and the proposed actions to address this.

2.     That the proposed use of the General Fund Reserve, as approved by Council on 2 September 2020, to fund the total projected overspend in 2020/21 be noted.

3.     That the proposed revenue budget virements over £150,000 (Appendix 1) be approved.

4.     That the 2020/21 capital budget Quarter Three predicted outturn of £45.195m against a budget of £50.363m be noted, and the proposed revised Investment Strategy to 2022/23 at Appendix 2 be approved.

REASONS

To enable the effective management of finances, in line with the Council’s Local Code of Corporate Governance, the Scheme of Delegation and agreed corporate financial regulations.