Issue - meetings

Finance, Qualis Client & Economic Development – (C-019-2021-22) – review of quarter 1 for 2021/22.

1.         The Cabinet noted the General Fund revenue position at the end of Quarter 1 (30th June 2021) for 2021/22, including actions being or proposed to improve the position, where significant variances had been identified;

2.         The Cabinet noted the General Fund capital position at the end of Quarter 1 (30th June 2021) for 2021/22;

3.         The Cabinet noted the Housing Revenue Account revenue position at the end of Quarter 1 (30th June 2021) for 2021/22, including actions proposed to ameliorate the position, where significant variances had been identified; and

4.         The Cabinet noted the Housing Revenue Account capital position at the end of Quarter 1 (30th June 2021) for 2021/22.

The Finance, Qualis Client and Economic Development Portfolio Holder, Councillor Philip introduced the report that set out the 2021/22 General Fund and Housing Revenue Account positions, for both revenue and capital, as at 30th June 2021 (“Quarter 1”).

In terms of General Fund revenue expenditure – at the Quarter 1 stage – a budget over spend of £0.126 million was forecast, with projected net expenditure of £16.937 million against an overall budget provision of £16.811 million.

The financial pressures – especially on income – due to the impact of the Covid-19 pandemic had carried over into 2021/22. The single largest item relates to Leisure Facilities whereby an overspend of £532,161 was forecast by the year end; although greatly reduced income was assumed from the contract with Places Leisure in 2021/22, the third lockdown and social distancing requirements extended beyond expectations at the time the Budget was developed in late January/early February 2021.

A delay in asset disposals to Qualis as part of the Regeneration element of the initiative was also causing some financial pressure in areas such as Building Costs and Interest Receivable.   

However, despite the pressure, a projected surplus on Financing and Recharges was expected to help avoid any major overspending.        

As with 2020/21, the Housing Revenue Account position was less affected by the Covid-19 pandemic. Indeed, income from Council Dwellings was outperforming its budget, although there is some spending pressure on Housing Repairs, which was not linked to the pandemic.

Councillor Murray asked for an explanation on the spending pressures on Housing Repairs not linked to the pandemic. He was told that over the past years there had been a budget for housing and void repairs. It turned out that they had regularly failed to hit that budget and had overspent on it. That led to a gap last year on what we expected to spend and what we actually spent. This is what we were now working on to rectify.

Decision:

1.         The Cabinet noted the General Fund revenue position at the end of Quarter 1 (30th June 2021) for 2021/22, including actions being or proposed to improve the position, where significant variances had been identified;

2.         The Cabinet noted the General Fund capital position at the end of Quarter 1 (30th June 2021) for 2021/22;

3.         The Cabinet noted the Housing Revenue Account revenue position at the end of Quarter 1 (30th June 2021) for 2021/22, including actions proposed to ameliorate the position, where significant variances had been identified; and

4.         The Cabinet noted the Housing Revenue Account capital position at the end of Quarter 1 (30th June 2021) for 2021/22.

Reason for Decision:

This report facilitates the scrutiny of the Council’s financial position for 2021/22.

In terms of General Fund revenue, it was again a challenging year, especially with some residual financial pressures – mainly on income – created by the Covid-19 pandemic. There was some spending pressure on the HRA revenue budget. Capital spending has been relatively limited in Quarter 1.

Other Options:

There  ...  view the full minutes text for item 55