Agenda item

Finance, Qualis Client & Economic Development – (C053-2021-22) - This report sets out the 2021/22 General Fund and Housing Revenue Account positions, for both revenue and capital, as at 31st December 2021 (“Quarter 3”).

1.         The Cabinet noted the General Fund revenue position at the end of Quarter 3 (31st December 2021) for 2021/22, including actions being or proposed to improve the position, where significant variances have been identified;

2.         The Cabinet noted the General Fund capital position at the end of Quarter 3 (31st December 2021) for 2021/22;

3.         The Cabinet noted the Housing Revenue Account revenue position at the end of Quarter 3 (31st December 2021) for 2021/22, including actions proposed to ameliorate the position, where significant variances have been identified; and

4.         The Cabinet noted the Housing Revenue Account capital position at the end of Quarter 3 (31st December 2021) for 2021/22.

The Finance, Qualis Client and Economic Development Portfolio Holder, Councillor Philip, introduced the report. It was noted that this report set out the 2021/22 General Fund and Housing Revenue Account positions, for both revenue and capital, as of 31st December 2021 (“Quarter 3”).

In terms of General Fund revenue expenditure – at the Quarter 3 stage – a budget over spend of £0.396 million, with projected net expenditure of £17.265 million against an overall budget provision of £16.869 million was forecast.

As reported in previous quarters this year, the financial pressure due to the impact of the Covid-19 pandemic had generally stabilised, with the Leisure Facilities budget especially now back on track (albeit based on lower income expectations) as leisure centre usage recovers more sharply than expected. Similarly, Car Park usage was now back to around 80% of pre-pandemic levels, although the budget is off track. Members should note however that, at the time of preparing this report, December 2021 data for both Leisure and Car Parking was still awaited, although there was some positive anecdotal evidence that suggests that the impact of the Omicron variant was not as great as initially feared.

However, there was a substantial overspend forecast (of £849,104) on the Commercial & Technical directorate, due to significant variable cost pressures on both the General Waste Collection and Recycling contracts, which were the most significant areas of concern.     

Decision:

1.         The Cabinet noted the General Fund revenue position at the end of Quarter 3 (31st December 2021) for 2021/22, including actions being or proposed to improve the position, where significant variances have been identified;

2.         The Cabinet noted the General Fund capital position at the end of Quarter 3 (31st December 2021) for 2021/22;

3.         The Cabinet noted the Housing Revenue Account revenue position at the end of Quarter 3 (31st December 2021) for 2021/22, including actions proposed to ameliorate the position, where significant variances have been identified; and

4.         The Cabinet noted the Housing Revenue Account capital position at the end of Quarter 3 (31st December 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, overall it has been a stabilising picture following the turbulence experienced in 2020/21 (and during Quarter 1 this year) due to the Covid-19 pandemic. However, as reported in previous quarters this year, there are still some remaining spending pressures, with the forecast overspend in the Commercial & Technical directorate being particularly pronounced at the Quarter 3 stage. The funding position appears more positive, especially on Council Tax. The net impact on the Council’s General Fund Reserve is especially important given the relatively limited contingency balance currently held.

There are some significant spending pressures on the HRA revenue budget, including ongoing issues with Housing Repairs, which has been challenging budget area in recent years.

Capital spending has been relatively limited in both the General Fund and HRA in the first half of the year.

The comments made at this Committee, where relevant, will be reported to Cabinet for their consideration at their meeting on 7th February 2022.

Other Options for Action:

There are no matters for decision in this report. The Committee is asked to note the contents but may choose to take further action depending on the matters reported.