Agenda item

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

The Financial Services Manager presented the report of the Executive Manager – Finance and Corporate Services which outlined the quarter two position in terms of financial and performance monitoring for 2020/21. This report presented the budget position for revenue and capital as at 30 December 2020 as reported to Cabinet on 9 March 2021 and includes the in-year variances along with variances as a result of Covid-19.

It was noted that further lockdowns had exacerbated the negative impact on the Council’s finances, albeit offset by additional government funding and these were reflected in the projections. The overall anticipated budget position is a positive with a budget efficiency of £0.721m, which took into account financial challenges caused by the pandemic, additional Government funding and importantly in-year net efficiency savings. The Group were also asked to note the capital budget efficiencies of £7.3m which were as a result of uncommitted funds in the Asset Investment Strategy, reprofiling of Bingham Hub expenditure based on a revised cash flow position; and an underspend on Disabled Facilities Grants. The Group also noted the expected outturn position for Special Expenses of £0.087m deficit.

The Financial Services Manager was pleased to inform the Group that the Council in conjunction with Parkwood, has recently submitted and been successful in an application to the National Leisure Recovery Fund to seek support of £0.21m toward the financial losses incurred. It was noted that data to 31 January 2021, showed collection rates for Council Tax had reduced by 0.9% equating to approximately £0.79m of cash not received which would create a deficit and a burden on future income streams albeit the County Council would take a significant proportion of the Council Tax deficit. However, recent government announcements mean this deficit can now be spread over three years and this should reduce the burden in each year.

At 7.55pm the meeting was adjourned so that the Group could pay their respects to those who had died during the Covid-19 pandemic. The meeting resumed at 8.05pm.

The Group asked questions regarding the Council’s inclusion of Leisure deficits in future budgets and assurance on long-term strategy for any financial difficulties in the future brought about by funding reviews, NDR receipts and the impact of Covid longer term.  The Financial Services Manager reassured the group that projected leisure deficits had been included in the MTFS and NDR receipts modelled at ‘worst case scenario’ along with planned replenishment of reserves over the period of the MTFS to provide resilience against potential negative impacts of impending funding reviews.

The Service Manager – Finance and Corporate Services asked the Group to comment on the monitored tasks which were outlined in the Corporate Strategy and the performance measures within the Corporate Scorecard. The Group were reminded that some targets had been omitted as a way of measuring performance for those indicators that are being impacted by the coronavirus pandemic. There was one exception within the operational score card:

LICO41 Percentage of householder planning applications processed within target times

The Service Manager – Finance and Corporate Services explained that despite the percentage of householder planning applications processed within target times being an exception for this quarter, this was a direct result of the planning officers hitting targets for major applications and developments.

The Group were asked to consider Appendix H in the report which detailed performance measures that had been impacted by Covid-19 and was presented as a supplement to the usual performance information. It was explained that this appendix showed measures grouped under headings of delivery, community and finance and was being used as additional tool to help monitor performance more closely, providing an early warning where a significant downtown in performance was emerging.

The Group asked questions regarding the collection of household waste and the percentage of household waste sent for reuse, recycling and composting. The Group were informed that the collection of recycled materials was on a downward trend but the collection of residual waste had increased. It was noted that the collection of waste would form part of the Waste Strategy item to be discussed at Communities Scrutiny Group. The Service Manager – Finance and Corporate Services also agreed to provide the Group with more detailed information about social media engagement at the next meeting.

It was RESOLVED that

a)    The report of the Executive Manager – Finance and Corporate Services be noted

b)    The expected net revenue efficiency for the year 0.721m be noted

c)     The expected outturn position for Special Expenses of £0.087m deficit be noted and;

d)    The Group be provided with more details regarding social media engagement at the next meeting.