To consider the attached report of the Chief Finance Officer – Finance Update 2020/2021
Cabinet considered the report of the Chief Finance Officer which presented the Council’s forecast 2020/21 financial position as at the end of July 2020.
Not reporting on financial performance puts at risk the achievement of the Council’s Medium Term Financial Plan. Effective budget management is critical to ensuring financial resources are spent in line with the budget and are targeted towards the Council’s priorities. Monitoring enables the early identification of variations against the plan and facilitates timely corrective action.
1. That Cabinet the forecast 2020/21 financial positions for Revenue, Capital, and the Collection Fund as at the end of July 2020 be noted;
2. That the utilisation of the 3rd tranche of emergency Covid 19 funding of £2,416k detailed in section 4.1.1. of the report be approved;
3. That the forecast Health & Social Care Pool Budget position as detailed in section 4.2. of the report be noted;
4. That the Budget Pressure requests in section 4.3 of the report be approved;
5. That the procurement process in relation to the use of the Insurance Reserve for the Town Hall restoration project be approved;
6. That the forecast unachieved savings target in section 4.4 of the report be noted;
7. That the net Capital budget changes of £2,277k detailed in section 4.6.2 of the report be noted;
8. That the Capital re-phasing of £23,407k detailed in section 4.6.3. of the report be noted;
9. That the request to change the use of Capital Budget as detailed in section 4.6.5. of the report be approved.
10. That the forecast 2020/21 Collection Fund position detailed in section 4.7 of the report be noted.
Reasons for the decision:
Cabinet Members should be kept updated on the financial position of the authority, as effective budget management is critical to ensuring financial resources are spent in line with the budget and are targeted towards the Council’s priorities.
The report focuses on the forecast 2020/21 financial position as at the end July 2020.
Chief Finance Officer to report
The Committee scrutinised a report of the Chief Finance Officer, which updated members on the Council’s forecast 2020/2021 financial position as at the end of July 2020.The Finance Update report contains details of the following:
a. The forecast Revenue outturn position, showing a pressure of £11,426k. The General Fund pressure relating to Covid-19 was reported to be £26,920k, which was partially offset by the use of the government funding relating to Covid-19 of £16,032k. Non-Covid-19 pressures were currently reported as an in-year pressure of £538k.
b. The Savings plans of £4,169k comprised of ongoing savings and £280k of one-off savings, with a balance to address of £764k. The balance to address was an impact of Covid-19.
c. An update on the Health & Social Care Pool Fund.
d. Forecast Capital expenditure of £135,430k, after re-phasing of £23,407k, £22,000k for schools being delivered in the next financial year and funded through external grants, grant increases of £2,295k for transport schemes and a budget reduction due to the transfer of £18k funding to an Academy.
e. The forecast 2020/2021 Collection Fund position of a deficit of £30,450k, which would be partially mitigated by increased government Section 31 grant of £20,950k, leaving a residual pressure of £9,500k, this pressure relating to the impact of Covid. The Council’s share of the forecast 2020/2021 Collection Fund deficit is £8,381k, which will impact on the Council’s General Fund budget for 2021/2022.
The purpose of the report was to keep Members updated on the financial position of the authority, as effective budget management was considered to be critical to ensuring the financial resources were spent in line with the budget and that they were targeted towards the Council’s priorities. The report focused on the forecast 2020/2021 financial position as at the end July 2020.
The Committee was advised that the submitted report was due to be considered by the Cabinet at its next meeting on 29th September 2020.
That the report be noted.