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Council and Democracy

Agenda item

Revenue and Capital Budget Monitoring 2020/21 - Financial and Covid Update Quarter 1

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

Decision:

It was RESOLVED that

 

a)    the projected net effect of in-year efficiencies (£0.624m) and Covid-19 pressures (£2.564m) and Covid Government funding (£1.518m) resulting in an expected net revenue position for the year of £0.422m be noted;

 

b)    a projected £2.864m net surplus on Business Rates as a result of additional S31 reliefs be noted and this surplus be transferred to the Organisation Stabilisation Reserve to offset the expected Collection Fund deficit in later years;

 

c)    the capital underspend of £24.8m as a result of planned programme slippage be noted; and

 

d)    the projected Special Expenses position with a projected deficit of £0.119m for the year be financed by a loan from the Council, with terms to be consulted on with the West Bridgford Community Infrastructure Levy (CIL) and Special Expenses Group.

Minutes:

The Portfolio Holder for Finance presented the report of the Executive Manager – Finance and Corporate Services outlining the budget position for revenue and capital at 30 June 2020.

 

The Portfolio Holder for Finance confirmed that as previously reported the impact of the Covid-19 pandemic has had a negative impact on the Council’s finances.  The anticipated budget gap had been partially offset by additional Government grants and in-house efficiencies, which had resulted in an overall net in-year budget gap of £422k, which was an improvement from the previous update reported to Cabinet in July 2020.  The Capital Programme had a planned underspend of £24.8m largely due to slippage in two major schemes at the Bingham Hub and the Crematorium.  The Council had entered into an agreement with Framework, which would lead to an additional investment of £150k to provide accommodation for rough sleepers, which was a commendable investment to help the more vulnerable.  The report highlighted the Council’s loss of income, additional costs and savings, with the reduction in total income and the support for leisure being the two most significant costs affecting the budget.  Savings had been incurred from a number of areas, including increased, garden waste income, housing benefit subsidy, together with management applied cost savings and efficiencies.  In respect of net revenue efficiencies for the year to date, that was projected at £624k, with a pressure of £2.5m due to Covid-19, which equated to £1.9m.  It was noted that the Council had received £1.52m in Government support, which had brought the projected budget gap down to £422k.  The year-end figure would be updated by any further Government funding and the speed of recovery from the impact of Covid-19.  Delays to Capital Receipts of £20m were expected, with some income being moved to the following year.  It was confirmed that Nottinghamshire County Cricket Club had repaid the loan of £55,000 on 7 August 2020.  In respect of Business Grants, it was noted that over £18m had been paid, which equated to over 91% of eligible businesses in the Borough.  £389k in hardship payments had been made in relation to Council Tax support, with over 2,400 households benefitting from those payments.  In respect of Discretionary Grants, 189 claims had been made, with £814k being paid to 62 claims, which equated to 84% of the available funds.  It was pleasing to note that additional efficiencies had been identified, and together with Government support that had resulted in the budget gap for revenue being more manageable.  Reference was made to the normal external financial pressures that affected the budget and it was reiterated that it was important that the Council continued to maintain a tight control over its finances, expenditure and reserves.    

 

In seconding the recommendation, Councillor Edyvean referred to the challenge of managing the budget in such difficult times and commended and thanked officers in the Finance team for their hard work.  Whilst the Council should not be complacent, the projected budget gap was significantly better than earlier projections and could be managed through further tight control.

 

It was RESOLVED that

 

a)     the projected net effect of in-year efficiencies (£0.624m) and Covid-19 pressures (£2.564m) and Covid Government funding (£1.518m) resulting in an expected net revenue position for the year of £0.422m be noted;

 

b)     a projected £2.864m net surplus on Business Rates as a result of additional S31 reliefs be noted and this surplus be transferred to the Organisation Stabilisation Reserve to offset the expected Collection Fund deficit in later years;

 

c)     the capital underspend of £24.8m as a result of planned programme slippage be noted; and

 

d)     the projected Special Expenses position with a projected deficit of £0.119m for the year be financed by a loan from the Council, with terms to be consulted on with the West Bridgford Community Infrastructure Levy (CIL) and Special Expenses Group.

Supporting documents: