Issue - meetings

The Cabinet Member for Finance, Performance and Core Services presented a report on the Council’s revenue budget monitoring position for the 2020/21 financial year as at 31 December 2020 (Month 9) and the revised Capital Programme.

The Council’s General Fund budget for 2020/21 was £155.796m. As a result of underlying financial pressures including increased costs, demographic and other demand growth, savings not yet delivered and other risks, there was an underlying budget variance of £5.934m largely in Care and Support and My Place service areas.

In addition and as a direct consequence of the impact of the COVID-19 pandemic, the Council had experienced a high level of additional costs and pressures including loss of service income from fees and charges. The minimum impact was assessed to be £28.175m including delayed or reversed savings which were also in the main forecast.  Including those Covid costs, the Council’s final net expenditure for the year was expected to be at least £189.951m, resulting in an overall expenditure variance of £29.972m.  Once Government COVID grant funding had been taken into account, a year-end variance of approximately £8.5m was currently projected.

The Cabinet Member also referred to proposed loans to Barking and Dagenham Reside Ltd and Barking and Dagenham Reside Regeneration Ltd to confirm arrangements already in place and assist with the sign-off of the companies’ annual accounts.

Cabinet resolved to:

(i)  Note the projected revenue outturn forecast for the 2020/21 financial year as set out in sections 2 to 4 and Appendix A of the report and the potential impact on the reserves position as set out in section 7 of the report;

(ii)  Note the update on key savings programmes, as set out in section 5 of the report;

(iii)  Note the update on the impact of COVID-19 and the lockdown, as set out in section 6 of the report;

(iv)  Approve the loan of £308,828 (including capitalised interest) to Barking and Dagenham Reside Ltd to smooth the financial return to the Council, as set out in section 9 of the report;

(v)  Approve the working capital loan to Barking and Dagenham Reside Regeneration Ltd, at 3% interest with a maximum loan facility of £371,000, as set out in section 9 of the report; and

(vi)  Approve the budget amendments / virement totalling £1.32m, as set out in section 10 of the report.