Issue - meetings

Revenue and Capital Budget Monitoring Q3

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

Decision:

It is RESOLVED that Cabinet approves the attached report both noting and agreeing to:

a) the expected revenue budget efficiency for the year of £0.054m inclusive of committed reserves;

b) the planned use of reserves totalling £4.140m (detailed in Appendix A of the report);

c) the capital underspend of £5.1m; and

d) the expected outturn position for Special Expenses of £15.7k deficit.

Minutes:

The Cabinet Portfolio Holder for Finance and Customer Access, Councillor Moore, presented the report of the Director – Finance and Corporate Services outlining the budget position for revenue and capital as of 31 December 2021.

Councillor Moore advised that this budget had been cleverly set anticipating the adverse impact of Covid, together with a combination of budget efficiencies, Business Rates and government funding had helped mitigate the financial impact of income loses. Cabinet was advised that the position remained volatile, with the reduction in Business Rates as a result of the power station appeal, additional charity reliefs and the subsequent reduction in the Business Rates Pool surplus affecting the Council. The Council had an outturn surplus of £54k, which considering the recent difficult times, was pleasing to note.

In respect of the Capital Programme, Councillor Moore confirmed that the Council currently had an underspend of £5.1m, which was again largely due to slight delays in rephasing of work schedules. Cabinet noted the main items impacting on the current Revenue Budget, detailed in Table I of the report. In terms of the timings on Capital Receipts, it was noted that any borrowing could be met from internal resources.

In conclusion, Councillor Moore drew Cabinet’s attention to the important information in the report related to the implications of bringing Streetwise in house and of the Council’s decision to replenish the Climate Change Reserve by £200k, to reinstate it to £1m. It was confirmed that all capital schemes would now be assessed for carbon reduction elements, and that fund would be used accordingly.

In seconding the recommendation, Councillor Brennan stated that it was pleasing to receive such a positive report, which also recognised a number of on-going risks in the wider operating environment, which the Council need to be mindful of. Councillor Brennan advised that just as the Council had quickly anticipated an improvement in circumstances following Covid, given recent international instability, it was pleasing that the budget efficiencies had enabled the Council to have a robust buffer in place to counter such eventualities, and that it continued to support and invest in key initiatives for the Borough.