Agenda item

Revenue and Capital Budget – Projected Outturn position as at Quarter One 2021/2022


The Director of Finance and the Head of Financial Planning and Support provided an update to the Board; the following points were highlighted:


  • The information detailed in the report was separated into two elements: COVID-19 related and non-COVID-19 related;
  • The 2021/22 Revenue budget for the Council was £116,492,035. The Council’s outturn position for 2021/22 for non-Covid-19 elements was projected to be an overspend of £1.717m (1.5%). It was anticipated that there would be a potential financial pressure due to COVID-19 of £2.036m in 2021/22. The total projected outturn at the end of the year was £3.753m;
  • The total projected overspend in 2021/22 would be covered by the full utilisation of the Social Care Demand Reserve of £0.5m and the Children’s Services Demand Reserve of £0.732m, which were created at the end of 2020/21. The remaining £2.521m of the total projected outturn pressure would be funded from the £4.512m Covid Recovery Reserve, which was created during 2020/21 to cover the potential costs arising from the Covid-19 recovery in 2021/22 and future years;
  • Paragraphs 80-100 of the report detailed expenditure against the Investment Strategy, which had a revised budget of £93.716m.  The current latest estimated outturn for 2021/2022 was £82.029m;
  • Paragraph 101 of the report indicated that borrowing had reduced by £1m in Q1 to £217.8m;
  • Total reserves were detailed in paragraph 108, which showed projections for 2021/22 to be £33.8m.  
  • Appendix 1 of the report detailed virements; Appendix 2 showed the revised Investment Strategy which would be used from this point onwards.


Following the update, Members were afforded the opportunity to ask questions.


A Member queried as to what issues the Board should be most concerned about at present in respect of risk and unforeseen eventualities. It was advised that one of the emerging risks was in relation to energy inflation and whether that would filter through and become a longer term pressure, the legacy of COVID-19 on income was another key potential risk factor. The MTFP for next year was currently being prepared and those issues were being considered. The financial implications for the Council resulting from the new Health and Social Care Bill was another unknown at this stage, although it was anticipated that more detailed information would be available following the forthcoming Government Spending Review and Local Government settlement.  


Reference was made the Environment and Community Services overspend and whether there was potential for that money to pulled back over the course of this financial year. It was explained that the overspend was a result of the kerbside recycling company entering administration, which had generated a financial pressure of £500,000. The contact for kerbside recycling was currently out to tender and it was hoped that savings would be achieved following that process. Another risk in this area was the Integrated Transport Unit, as to a lack in the availability of taxi drivers increased costs were being incurred. Efforts were being made to pull back on costs but there were real challenges.


In response to a query regarding the problem recruiting HGV drivers it was advised that at present it was not impacting on the Council’s provision of waste services. However, the query would be referred to the Director of Environment and Community Services for further information.    

The amount of expenditure on Council purchase cards was queried and it was advised that some up to date information on this type of expenditure would be provided to the Board.


The Chair thanked the Director of Finance and the Head of Financial Planning and Support for their attendance and contributions to the meeting.


AGREED that the information provided be noted, and the agreed actions be undertaken.


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