Issue - meetings

The Cabinet Member for Finance, Performance and Core Services presented a report on the Council’s revenue budget monitoring position for the 2021/22 financial year as at 31 October 2021 (period 7) and the capital budget position for quarter 2.

The Council’s General Fund revenue budget for 2021/22 was £173.614m and the forecast outturn position at the end of October projected a net overspend of £9.299m, which represented an improvement of £0.85m compared to the previous month.  It was noted that the specific Budget Support reserve of £11.433m would cover that overspend without requiring a drawdown from the main £17m General Fund reserve.  The Cabinet Member stressed, however, the importance of continuing to reduce areas of overspend and identify mitigating measures and new opportunities that would improve the overall position, particularly in view of the difficulties that would be faced in future years. 

The adjusted Capital Programme for 2021/22 was £432.043m, consisting of £82.46m for the General Fund, £306.37m under the Investment and Acquisition Strategy and £43.22m for the Housing Revenue Account (HRA).  The Cabinet Member advised that expenditure at the end of the second quarter was £129.46m and the end of year forecast position was £366.54m, representing forecast slippage of £65.5m which, in the main, would be reprofiled into future years.  The report also set out a number of proposed adjustments to the Capital Programme to reflect the current status of several projects across service areas.

The Cabinet Member referred to the range of issues that were impacting on the Council’s finances and the failure of the Government to properly recognise those pressures.  Cabinet Members considered the challenges being faced at the moment and measures that the local community could do to help reduce costs, such as minimising waste over the Christmas holiday period.

Cabinet resolved to:

(i)  Note the projected revenue outturn forecast for the 2021/22 financial year as set out in sections 2 and 3 and Appendix A of the report;

(ii)  Note the update on savings and commercial income, as set out in section 4 of the report;

(iii)  Approve the revised Capital Programme for 2021/22 of £432.043m, incorporating the adjustments set out in section 5 of the report; and

(iv)  Note the Q2 capital expenditure and forecast spend for the year as set out in sections 6 and 7 and Appendix B to the report.