Minutes:
The Head of
Strategy, Information and Governance was in attendance at the meeting to
present the Strategic Plan 2020-2023 – Progress at Quarter Two 2020/2021
report. The Head of Financial Planning and
Support was in attendance to present the Revenue and Capital Budget – Projected
Outturn Position as at Quarter Two 2020/2021 report. The Director of Finance was also in
attendance.
The Head of
Strategy, Information and Governance delivered a presentation to the Board.
The submitted
report updated on the Strategic Plan approved by Council on 15 January
2020. As previously raised at OSB,
COVID-19 had resulted in a serious impact on the Council’s planning, which had
resulted in a currently ongoing refresh of the Strategic Plan, with
consultation activity being carried out.
A revised document would be submitted to Council at the end of February
2021, and a Strategic Plan work plan to Executive in March 2021.
Details were
provided in relation to the Council’s ‘People’ Strategic Objectives, with
reference being made to the impact of crime and Anti-Social Behaviour (ASB) and
the trends that had been seen in Middlesbrough, which were reflected nationally
(i.e. crime had decreased during lockdown and increased post-lockdown; the
opposite had been seen in respect of ASB).
It was difficult to take a long-term view of crime and ASB in
Middlesbrough, but various initiatives were being implemented to help reduce
this, e.g. installation of additional CCTV cameras; granting of new powers to
Neighbourhood Safety Officers; and a grant funding scheme for household CCTV.
A Green Strategy
consultation had been launched, which would address how the co2 emission gap
would be met in following the reversal of the decision to implement fortnightly
residual waste collections.
Children’s
Services had continued to see the number of children subject to statutory
intervention rise, although Looked After Children did peak in July 2020 and had
been reducing since. Reference was made
to the Ofsted improvement plan and the achievements made to date, with positive
feedback being received from the Commissioner and Department of Education.
Recovery work
within the Town Centre had been paused due to tier three restrictions and
subsequent lockdown
With regards to
the ‘Place’ Strategic Objectives, it was indicated that the Investments
Prospectus remained on target, but there were potential risks to it due to the
economic downturn following COVID-19.
Regarding
‘Business’ Strategic Objectives, the economic impact of COVID-19 was still
awaited to be seen, but claims had increased between May and September 2020.
Reference was made
to the ‘End Child Poverty Campaign’ report, which had identified
Middlesbrough’s Local Authority area as the one where child poverty had
increased most significantly in the years since 2014.
It was highlighted
that all of the matters raised had been picked up as part of the COVID-19
Recovery Plan.
In terms risk
management issues, a risk review had been undertaken. Reference was made to the Brexit trade and
security deal, the impact of which would continue to be monitored and reviewed.
The Head of
Financial Planning and Support delivered a presentation to the Board.
Regarding the
revenue position, the total projected outturn at Quarter Two was £4.405m;
COVID-19 and non-COVID-19 elements had been split to enable the effects of
COVID-19 to be seen. There was a
£9,000.00 underspend on the non-COVID-19 elements and an estimated financial
effect in 2021 of £4.414m. The report
detailed the non-COVID-19 elements of this, with the main variances per
directorates being illustrated.
The main
non-COVID-19 area was Children’s Services; details of the current position were
provided in the report.
COVID-19 spends
pertaining to both Government funding and the costs were detailed in the
report, however, it was noted that these figures did change rapidly.
Pressures /
reductions on income to the Council, such as car parking and culture
activities, were indicated, with details being provided in the report.
The Council had
not been able to achieve some planned savings and there were also some
pressures on Council Tax and Business Rates income.
In terms of the
capital position, there was an underspend of circa. £4.6m against a revised
budget of £55m, which was largely due to a delay in schemes as a result of
COVID-19.
Details regarding
reserves and borrowing reserves were provided.
In terms of borrowing reserves at Quarter Two, the Council had £27.4m
total reserves. It was highlighted that
not all of this was available for use; the figure to observe concerned the
general fund, which was £10.6m. A
minimum level of £9.4m had been set for 2020/2021. Reference was made to a report to Full
Council on 2 September 2020, which detailed planned coverage of the projected
overspend on COVID-19, and the use of the general fund reserve in that regard.
Appendix 1 of the
report detailed virements, and Appendix 2 provided details of the schemes on
the investment strategy.
The Director of
Finance indicated that the position will have progressed since the end of
Quarter Two; work was currently taking place in respect of Quarter Three, which
would be submitted to Executive on 16 February 2021. It was noted that an Extraordinary OSB
meeting would be taking place to consider the current budget consultation.
Following the update, Members were afforded
the opportunity to ask questions.
A Member queried
the process and flexibility of transferring funds between different
budgets. In response, the Head of
Financial Planning and Support explained that the mechanism to achieve this
would be to either identify the transferred fund as a virement appended to
Executive reports, or to action it as part of the Council budget report, which was
submitted annually in February.
A Member referred
to Children’s Services and expenditure in relation to Looked After Children,
and queried progress regarding the expansion of the Authority’s own care
homes. In response, the Head of
Financial Planning and Support explained that there had been a slight delay due
to COVID-19 in some instances; reference was made to one care home that
currently supported five children although had provision for nine. It was anticipated that nine children would
be supported by 30 April 2021, which was positive progress. Reference was made to the recent declining
number of Looked After Children, which was also positive.
The Director of
Finance advised that the impact on Children’s Services was a good example of
how uncertain the impact of COVID-19 had been on individual budgets. Consideration was given to vulnerable
families and individuals and the variables involved in providing support,
particularly during the pandemic. It was
indicated that the opening of new facilities was delayed by the first lockdown
when all building work ceased, but all were now up and running, e.g. Daniel
Court and the Future for Families Hub.
Reference was made to Quarter Three results, which were currently being
processed, which appeared to show a sustained reduction in the number of Looked
After Children, and in the cost of placements of children. It was felt that this was reflective of the
improvements in practice that had been achieved. Members were advised that when the budget was
set, a £2.913m central demand pressure reserve had been allocated, which was
part of the underspend on central budgets.
This had been held against Children’s Services as required, therefore
those figures would vary slightly at Quarter Three.
A Member referred to
page 38, paragraph 53 of the report, and raised concerns regarding the
Council’s estimated payment of £1.1m to SLM.
It was explained that because SLM was a Leisure Trust, the Council would
not be able to claim reimbursement from a Government fund. In response, the Head of Financial Planning
and Support explained that this situation had now changed and the Council would
be eligible to claim under the DCMS (and therefore that figure would reduce at
Quarter Three). In follow-up, the Member
queried the Council’s responsibility for the buildings if SLM could not manage
the three leisure centres. In response,
the Chief Executive advised that the buildings were still under the Council’s
ownership; SLM purely managed the delivery of leisure services under a Council-issued
contract. If SLM went out of business,
those services would either be re-contracted or returned back in-house. Restrictions set by the Government had forced
closure of the centres, which had affected income levels; there were no
operational issues.
A Member referred
to paragraph 15 of the report and Public Health’s projected budget savings of
£266,000 due to reduced activity for demand-led services, such as stop smoking,
etc., which was felt to be a large figure.
It was queried whether any concerns had been raised in relation to this
reduction, and whether there were any wider Public Health impacts anticipated
through reduced uptake. In response, the
Head of Financial Planning and Support advised that services had not been taken
up due to COVID-19 restrictions; this was an issue that would need to be
monitored by the service area. The Chief
Executive noted the impact from both a financial and health service
perspective. Reference was made to the
COVID-19 Recovery Plan; a six-month piece of work to understand the impact of
COVID-19 on public health outcomes, particularly where already existing gaps
had widened, would be undertaken as part of this. It was anticipated that the finalised report
would be released in circa. eight months’ times.
A Member referred
to paragraph 87 of the report and queried the criteria and expectations around
financial expenditure for the £235,000 that Middlesbrough Development Company
had set aside for the Council’s Empty Homes Initiative. A response from the respective service area
would be sought.
A Member requested
clarification in relation to budgets and underspends. The Director of Finance advised that, as a
basic rule, this followed the rule for key decisions. If £150,000 was to be moved from one area to
another, this required Executive approval; a process that could be undertaken
throughout the year. From a financial
perspective, the bottom line would be monitored to ensure that underspending
did not result in a negative position.
The Chair thanked the Head of Strategy, Information and Governance,
the Head of Financial Planning and Support, and the Director of Finance for
their attendance and contributions to the meeting.
The Chair reminded all in attendance of the
Extraordinary OSB meeting in respect of the budget consultation, which had been
scheduled for 27 January 2021.
AGREED that the information provided be noted, and the agreed action be
undertaken.
Supporting documents: