Agenda item

The Executive Member for Environment and Finance & Governance and the Director of Finance submitted a report for the Executive’s consideration.

 

The purpose of the report was to advise of the Council’s financial position at Quarter One 2021/22, including the projected effect of Covid-19 on the Council’s finances.

 

The 2021/22 Revenue budget for the Council was £116,492,035. During Quarter One there had been a number of transfers of services between Directorates due to managerial changes, and the financial position was reported against the new Directorate budgets. The Council’s outturn position for 2021/22 for non-Covid-19 elements was projected to be an overspend of £1.717m (1.5%). The split by Directorate was shown in the table below paragraph 7 of the submitted report. That when added to the estimated Covid-19 pressures of £2.036m, detailed in paragraphs 45 to 73 of the submitted report, resulted in a total projected outturn pressure at year-end 2021/22 of £3.753m.

 

It was proposed that the total projected overspend in 2021/22 would be covered by Reserves. The level of Reserves remaining after the use of the Reserves was shown at paragraph 108 of the submitted report and in Appendix 3.

 

The progress against budget savings was detailed at paragraphs 11 to 15 of the submitted report.

 

The detail of the variances contained in the table at paragraph 7 were set out as below:

 

·        Regeneration and Culture (paragraphs 17 to 19)

·        Environment and Community Services (paragraphs 20 and 21)

·        Public Health (paragraph 22)

·        Children’s Care (paragraphs 23 to 32)

·        Adult Social Care and Health Integration (paragraphs 33 to 35)

·        Legal and Governance Services (paragraph 36)

·        Finance (paragraphs 37 to 39)

·        Central Budgets (paragraphs 40 to 44)

 

At Quarter One, 25 areas were projected to be spent +/- £150,000 of the agreed budget. Where appropriate, the on-going effects of variances would be considered as part of future updates of the Council’s Medium Term Financial Plan.

 

As part of the Revenue and Capital Budget - Year End Outturn Position report of 15 June 2021, Executive had approved a revised capital budget for 2021/22 of £93,716,000. Following a further review and the inclusion of new additional schemes, increases to existing schemes, and reductions to existing schemes (as detailed in paragraphs 82 to 84 of the submitted report), it was currently predicted at Quarter One that the Council would spend £82,029,000 in 2021/22 at year-end.

 

The revised Investment Strategy for 2023/24 was included at Appendix 2, for approval.

 

In terms of capital budget, the split by Directorate was shown in the table at paragraph 86 of the submitted report, which also showed the “real” projected outturn variance if all of the additional new schemes, increased schemes, reduced schemes, and transfers between directorates were excluded. Explanations for variances of +/- £150,000 across fourteen schemes were set out in paragraphs 87 to 100.

 

ORDERED

 

1.      That the 2021/22 revenue budget Quarter One total projected outturn of £3.753m, representing a £1.717m (1.5%) overspend on non-Covid-19 elements and the estimated financial effect of Covid-19 in 2021/22 of £2.036m, and the proposed actions to address that - be noted.

2.      That the proposed use of the following Reserves to fund the total projected overspend of £3.753m in 2021/22 be noted:

·        Social Care Demand Reserve (£0.5m)

·        Children’s Services Demand Reserve (£0.732m)

·        Covid Recovery Reserve (£2.521m)

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

4.      That the 2021/22 capital budget Quarter One predicted outturn of £82.029m against a budget of £93.716m be noted, and the proposed revised Investment Strategy to 2023/24 at Appendix 2 be approved.

 

REASON

 

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.