52 Revenue Budget Monitoring 2021/22 (Period 6, September 2021) PDF 126 KB
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 30 September 2021 (period 6).
The General Fund revenue budget showed a forecast outturn position of £184.322m, which was a slight improvement on the position reported for period 5. Once income was taken into account, that would represent an overspend of £10.187m which could be offset against the Budget Support Reserve of £11.433m, although that would deplete the reserve and increase the risk in future years.
The Cabinet Member highlighted the large overspend in the previous year due to the COVID pandemic, some of which was met through Government grants, and advised that many of those additional costs had now become the ‘new normal’. Two areas which would continue to face revenue pressures in the years to come dealt with the Borough’s most vulnerable residents, those being Community Solutions and the Children and Adults’ services. As there was unlikely to be a similar level of grant to cover those ongoing pressures and with the recent reduction of Universal Credit of up to £1,000 per year for some residents, the Cabinet Member commented that the local community would continue to suffer as a direct result of the Government’s policies, albeit that the Council was doing all it could to reduce the burden.
The Cabinet Member referenced the prudent investments made by the Council, without which the Council would be in a considerably worse financial position, and advised that returns from the Council’s subsidiary companies continued to provide dividends which would supplement the budget.
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 proposals, as set out in section 4 of the report.