Agenda item

The Committee scrutinised a report of the Director of Finance that provided Members with an update on the Council’s 2021/2022 forecast revenue budget position, detailed at Annex 1 to the report and the financial position of the Authority’s capital programme as at 30^th November 2021 (Month 8) together with the revised capital programme 2021/2022 to 2025/2026, as outlined in section two of the report at Annex 2. An opportunity was taken to update the forecasts and grant detail in the report where information had been received more recently and has an impact on the financial projections included within the submitted report.

In terms of the revenue position, the current forecast outturn position for 2021/2022 was a projected surplus variance of £2.672m after allowing for approved and pending transfers to and from reserves. This position included additional costs and pressures that had been identified by the Authority in the current financial year as a direct result of the Covid-19 pandemic. The additional pressures included forecasts of both income shortfalls and additional expenditure that had impacted on the Authority’s budgets. The pandemic continued to affect nearly all aspects of the Council service delivery. The most significant areas of concern remained the People and Place, Children’s Services and Community Health and Adult Social Care Portfolios. Action was being taken and would continue for the remainder of the financial year to address variances and take mitigating action as detailed in the report.

Information on the Quarter 2 position of the Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and Collection Fund was also outlined in the submitted report. There were currently no significant issues of concern in relation to the HRA. The Collection Fund position was improving, with a reduced in-year deficit of £12.159m (of which the Council’s share was £11.785m) compared to £13.712m at Quarter 2, directly because of Covid-19. Government grant compensation of £13.092m would offset this to produce a forecasted surplus of £1.307m which would be available to support the 2022/2023 budget. Whilst the DSG continued to be an area that would be facing a financial challenge, recent funding announcements had contributed to an improved position, reducing the cumulative deficit and bringing the DSG towards an enhanced balanced position in 2023/2024.

In terms of the Capital Position the Committee’s report outlined the most up to date capital spending position for 2021/2022 through to 2025/2026 for approved schemes. The revised capital programme budget for 2021/2022 was £52.588m at the close of month 8 (30^th November 2021), a net decrease of £33.414m from the original budget of £86.002m. Actual expenditure to 30^th November 2021 was £23.801m (45.29% of the forecast outturn). The forecast position would continue to change as the financial year ended with additional reprofiling into future years. The Month 8 Revenue Monitor and the Capital Investment Programme 2021/2022 report had been presented to the Council’s Policy Overview and Scrutiny Committee on 27^th January 2022 alongside the 2022/2023 budget reports. That Committee had noted the report and commended it to the Cabinet for approval at its ‘budget’ meeting, that was to be held on 14^th February 2022.

Resolved:

That the report be noted.