Agenda item

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

It was RESOLVED that

a)         the 2020/21 revenue position and efficiencies identified in Table 1 and the Covid related variances in Table 2 be noted, and the carry forwards in Table 6 be approved;

b)         the associated changes to the earmarked reserves as set out at Appendix B including the newly created Collection Fund Reserve as stated in paragraph 4.2 be approved;

c)          the re-profiled position on capital be noted and the capital carry forwards outlined in Appendix C be approved; and

d)         the update on the Special Expenses outturn and loan position at paragraph 4.13 and in Appendix D be noted.

The Portfolio Holder for Finance and Customer Access, Councillor Moore presented the report of the Director – Finance and Corporate Services outlining the year-end financial outturn position for 2020/21, linked to the closure of the accounts process and previous financial update reports, including the in-year variances, together with variances resulting from Covid 19.

Councillor Moore referred to the very unusual and challenging year that the Council had faced, and reminded Cabinet that the Council had experienced lost income and increased expenditure, with Table 2 of the report highlighting the main items which had impacted on the current Revenue Budget, and in particular the £1.2m support for leisure facilities.

Councillor Moore referred to Table 1 in the report and to the significant increase in net transfer to reserves, which stood at £7.3m; however, Cabinet noted that £5.9m of that would be required to fund the Business Rates deficit over the forthcoming years. That had been dealt with by the formation of a Collection Fund Reserve, which would release those funds over the next few years.  The report also highlighted a number of carry forward requests from last year, totalling £910k.

Councillor Moore referred to the Government led initiatives, which the Council had delivered, and it was noted in Table 3 of the report that £11.1m of Business Rates Relief had been paid to 926 businesses; Table 4 outlined the various Covid 19 related grants available, with £30.8m paid to support local businesses; and Table 5 highlighted £58k being paid for 121 test and trace payments, to support the more financially vulnerable who had been required to isolate due to Covid 19.

Cabinet noted that the Council’s overall reserve was healthy; however, this year had highlighted the importance of having sufficient reserves to ensure financial resilience.  It was also pleasing to note that the New Homes Bonus had increased by £1.2m, and that would be committed to support Capital schemes. 

In respect of the Council’s Capital Programme, there was £6.8m underspend brought forward, with the reasons for that highlighted in Appendix C of the report.

Cabinet was advised that the Special Expenses position for West Bridgford was referred to in Appendix D, with the deficit due to loss of income caused by Covid 19, to be covered by a loan, which would be reported to the next meeting of the West Bridgford Special Expenses and Community Infrastructure Levy Advisory Group.

In conclusion, Councillor Moore advised that this was a more detailed report than usual, due to the financial implications of Covid 19, and that to a degree, the Council’s reserves had protected it from further financial challenges, and Cabinet was assured that the Council was in a strong financial position to deal with any future issues; whilst continuing to progress with its ambitious Capital Programme.  Officers throughout the Council, and in particular, the Director – Finance and Corporate Services and his team were thanked for their hard work in continuing to deliver excellent services to residents and businesses throughout the Borough during this difficult time.

In seconding the recommendation Councillor Edyvean reiterated previous comments regarding the challenging situation that the Council had faced, and the thanks given to officers, and commented that it was pleasing to note that the Council had been one of the top performing in the country in providing support to local businesses and residents.

Councillor Edyvean specifically referred to the reduction in car parking charges of £360k and advised that this was because the Council had offered free or reduced parking charges during the pandemic to support local businesses.  Reference was also made to a small shortfall in the Council’s property investment, and it was noted that officers had worked with tenants to minimise disruption and offer support, and it was positive that this shortfall was so small.  Councillor Edyvean stated that it was encouraging that despite all the pressures from the pandemic, the Council had maintained financial resilience.

The Leader echoed the comments made and referred to the complexities that the Council had faced over the last 18 months, the incredible resilience that the Council had shown and thanked the Director – Finance and Corporate Services and his team for their hard work during such challenging times.  Cabinet was advised that those challenging times would continue, and residents knew that the Council would continue to serve their best interests, and it was noted that when the pandemic started the Council was financially strong and resilient and that had helped during this difficult time.

The Leader referred to the significant impact on the Council’s revenues, including the loss of car parking charges, which had been introduced to help local businesses, and that would continue going forward and would be reviewed, as it was important to stimulate the local economy, in all sectors throughout the Borough.  Refence was also made to the importance of the Council’s well balanced assets portfolio, which had remained resilient.

In conclusion, the Leader noted that the accounts would be subject to cross-party scrutiny at the Corporate Overview Scrutiny Group and the Governance Scrutiny Group.

It was RESOLVED that

a)         the 2020/21 revenue position and efficiencies identified in Table 1 and the Covid 19 related variances in Table 2 be noted, and the carry forwards in Table 6 be approved;

b)         the associated changes to the earmarked reserves as set out at Appendix B including the newly created Collection Fund Reserve as stated in paragraph 4.2 be approved;

c)          the re-profiled position on capital be noted and the capital carry forwards outlined in Appendix C be approved; and

d)         the update on the Special Expenses outturn and loan position at paragraph 4.13 and in Appendix D be noted.