Issue - meetings

Q3 Finance Report

The report of the Executive Manager – Finance and Corporate Services is attached.

Decision:

It was RESOLVED that the report be approved, and the following be noted:

a) the expected net revenue efficiency for the year of £0.721m;

b) the capital budget efficiencies of £7.3m; and

c) the expected outturn position for Special Expenses of £0.087m deficit.

Minutes:

The Portfolio Holder for Finance, Councillor Moore presented the report of the Executive Manager – Finance and Corporate Services outlining the budget position for revenue and capital at 31 December 2020.

Councillor Moore advised that due to the impact of Covid, previous quarterly reports had highlighted the difficult situation that the Council was facing. In the last report, Cabinet had noted a deficit of £244k, which had been caused primarily by a reduction in income and to additional support costs. However, at the same time, significant cost savings had been made, details of which were highlighted in the report. Cabinet was advised that the Government had supported the Council with some additional income, and that support had helped to turn the previous deficit into a projected positive position of £721k in Quarter 3. Councillor Moore confirmed that this positive position would help to replenish the Organisation Stabilisation Reserve, to ensure that the Council had the available resources to meet any future risks going forward, and Cabinet was reminded that the Council was fortunate to have sufficient reserves to deal with any future crises. In respect of the Capital Programme, the report highlighted an underspend of £7.3m, primarily due to small delays to the Bingham Leisure Centre project and to uncommitted funds in the Asset Investment Strategy, with the provision for that Strategy now being removed. Cabinet was advised that Special Expenses had been impacted by Covid, although it was eligible for limited Government support. The deficit amounted to £87k, which would be repaid by a loan, as agreed by the West Bridgford Special Expenses Group. In conclusion, Councillor Moore advised that given the difficult situation the Council had faced, this was a much more positive position, and it was hoped that as the situation continued to improve, this would be continued into the next quarter.

In seconding the recommendation, Councillor Brennan noted the scope for optimism going forward and that the efficient handling of the Council’s finances had allowed it to manage the difficult financial situation. Councillor Brennan advised that the Council had continued to deliver on its priorities and with in-house efficiencies and Government support, the previous deficit position had moved to a projected positive position, and the Council would continue with its prudent financial management and look to replenish its reserves, where possible, to ensure that it was well placed to respond to any future issues.

Councillor Robinson reminded Cabinet that due to the Council’s long standing, robust financial management and resilience, it had coped effectively with the difficult financial situation caused by the pandemic, and it was essential that the Council continued to remain vigilant and focused.