Agenda item

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

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

a) the expected revenue budget efficiency for the year of £0.673m, incorporating the potential appropriation of £1m to a Vehicle Replacement Reserve (to be included in the Medium Term Financial Strategy report to Full Council in 2022);

b) the use of £0.1m in budget efficiencies from 2021/22, to boost the Strategic Growth Board budget in 2022/23, to support the community recovery from Covid, at paragraph 4.4 of the report;

c) the capital underspend of £10.204m, of which £8.420m is to be carried forward: £8.295m to the 2022/23 Capital Programme and £0.125m to the 2025/26 Capital Programme;

d) the acceleration of £40k capital provision for Play Areas from 2022/23 to 2021/22 to meet commitments;

e) the expected outturn position for Special Expenses of £10.2k deficit; and

f) the planned use of reserves at paragraph 4.2 of the report.

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 30 September 2021.

Councillor Moore was pleased to confirm that this report provided the most positive news for some time, and it was hoped that the situation would not deteriorate due to the outbreak of the new variant. Cabinet noted that the Council had remained diligent, kept a tight control of its expenditure, and quickly identified any impact from external changes, whilst maintaining healthy reserves.

Cabinet was advised that the current budget had been set anticipating an adverse impact on the Council’s finances, which had been a prudent step; however, Business Rates, Government funding and budget efficiencies had helped to significantly reduce that impact, leaving the Council with a budget efficiency of £673k. Councillor Moore confirmed that a request had been made for the approval to transfer £100k of that sum to boost the Strategic Growth Board budget for 2022/23. Cabinet noted that a further £1m of that sum was proposed to be utilised for vehicle improvement and replacement to ensure the Council’s continued commitment to the carbon neutral agenda.

In respect of the Council’s Capital Programme, Councillor Moore highlighted details of the carry forward, totalling £8.29m, which were due to slippage in two major schemes; however, the figures still emphasised the Council’s commitment to those capital projects.

In conclusion, Councillor Moore emphasised that this was a very favourable report and highlighted the excellent work undertaken by officers, in both managing Covid and the recovery

In seconding the recommendation, Councillor Edyvean endorsed Councillor Moore’s comprehensive comments and in particular welcomed the additional funds for the Strategic Growth Board and local businesses. The Director – Finance and Corporate Services and his team were thanked for their ongoing dedication, and their prudent management of the Council’s finances was acknowledged.

The Leader confirmed that given the timing of the report, it had yet to reflect any impact from the new variant, and it was essential that the Council remained flexible going forward, as there could be implications ahead. Cabinet was reminded that due to the prudent management of its finances the Council had remained resilient, and had not needed to borrow money, whilst still being able to fund large projects internally. Given that the country had only come out of lockdown in July, it was pleasing to see how positive the Council’s position was.

In conclusion the Leader reiterated the thanks given to the Director – Finance and Corporate Services and his team for their hard work and dedication during this challenging time and welcomed the very positive position outlined in the report.