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 January 2021 (Month 10) and an update on Capital Programme expenditure.

The Council’s General Fund budget for 2020/21 was £155.796m. As a result of underlying financial pressures, demographic changes, increases in demand, savings not yet delivered and other risks, there was an underlying budget variance of £3.702m, largely in Care and Support and My Place service areas, which were offset by underspends in Central Expenses and Enforcement.  In addition, as a result of the COVID-19 pandemic and subsequent economic impacts, the Council has experienced a high level of additional costs and pressures, including loss of service income from fees and charges.

The Cabinet Member referred to the proposal for a new scheme relating to Chequers Lane environmental improvements and the associated section 106 allocations. He also referred to proposals relating to the variation of the contract with Sports and Leisure Management Limited, who managed the Borough’s leisure centres, and the constraints that the company had faced as a consequence of the COVID-19 lockdown.

Cabinet’s attention was also drawn to funding for schools, in particular, the census date for free school meals which was changed, resulting in approximately £1m loss in pupil premium funding for the Borough.  A second issue of funding related to school staff who were self-isolating as they were classed as clinically extremely vulnerable, the cost of which could not be set against the COVID-19 grant for schools.  It was noted by the Cabinet that the Leader, along with other London boroughs, were lobbying the Government to address the issues.

Cabinet resolved to:

(i)  Note the projected revenue outturn forecast for the 2020/21 financial year as at 31 January 2021, 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)  Note the Capital Programme expenditure and forecast position as at 31 December 2020 (Q3), as detailed in section 9 and Appendix 2 to the report;

(v)  Approve a capital budget of £421,319.80 for the Chequers Lane environmental improvements scheme, to be fully funded from Section 106 contributions relating to the area, as set out in section 10 of the report;

(vi)  Approve, in the light of the Covid-19 public health emergency, a contract variation under Contract Rule 58 (c) with Sports and Leisure Management Limited (company no. 02204085) in respect of the management of the Borough’s leisure centres, as set out in section 11 of the report; and

(vii)  Authorise the Finance Director, in consultation with the Cabinet Member for Finance, Performance and Core Services and the Director of Law and  ...  view the full minutes text for item 93