The Director of Finance submitted a report setting out the projected revenue and capital outturn positions for 2021/22 for both the General Fund and the Housing Revenue Accounts as at the end of June 2021 (Quarter 1), as well as performance against the measures of success published in the Council’s Corporate Plan.  The following documents were attached to the report:

·       Appendix 1 – Financial Monitoring for Quarter 1

·       Appendix 2 – Corporate Plan Measures for Quarter 1

·       Appendix 3 – BFFC Covid Funding Request

·       Appendix 4 – DACHS Covid Funding Requests

The report stated that the forecast General Fund revenue outturn position as at the end of Quarter 1 was an overspend of £3.419m after the use of £3.844m of corporate contingencies.  This forecast position included estimated gross revenue pressures of £3.175m arising as a direct result of Covid-19. The Housing Revenue Account (HRA) was projecting an underspend of £0.333m as at the end of Quarter 1, the General Fund Capital Programme was forecast to underspend by £11.306m in 2021/22, and the HRA Capital Programme was forecast to underspend by £8.456m in 2021/22.  £4.297m of 2021/22 savings were currently categorised as non-deliverable (red) with a further £3.543m categorised as at risk of delivery (amber).

The report noted that at its meeting on 12 July 2021 (Minute 23 refers) the Committee had approved that £3.968m of un-ringfenced Covid-19 grant funding be put into an earmarked reserve to meet the ongoing financial impacts of the pandemic. Bids from demand-led services in the Directorate of Adult Care and Health Services (DACHS) and Brighter Futures for Children (BFfC) had now been received, amounting to £1.986m, and the Committee was requested to consider their approval. Appendix 3 set out bids from BFfC for four proposals relating to Supporting 0-2s and Parents, Schools Recovery Resources, Adolescent Mental Health, and Children Looked After: Mental Health & Wellbeing.  Appendix 4 set out bids from DACHS for five proposals relating to Reduce people waiting for Mental Capacity Assessments to move from Appointee to Court Appointed Deputy, Physiotherapist for community rehabilitation post rapid hospital discharge, Relaunch & expand NHS Health Checks Programme, Continuing Health Care Resource and Commissioning Quality Assurance.

The report also explained that there was a budget virement that required approval from the Committee as it exceeded £0.5m.  The purpose of the virement was to align the electricity charges for streetlighting with other Corporate Energy Budgets, in order to make it clearer to review the Corporate Energy expenditure for forecasting/efficiency monitoring purposes and keep the Energy Budget separate from the Maintenance expenditure.

At the meeting the Chief Executive gave an update on the potential impact on the Council’s budget from the wider economic context including the anticipated increase in inflation and pressures in the labour market such as a shortage of drivers.  He also summarised the ongoing and possible future impact of COVID such as increased demand for social care and mental health services and the effect of home working on the local economy and therefore business rates collection.

Resolved -

(1)      That it be noted that:

a)             The forecast General Fund revenue outturn position as at the end of June 2021 was a net overspend of £3.419m after the use of £3.844m of contingencies;

b)             The Housing Revenue Account was forecast to underspend by £0.333m as at the end of June 2021;

c)             The General Fund Capital Programme was forecast to underspend by £11.306m;

d)             The HRA Capital Programme was forecast to underspend by £8.456m;

e)             £4.297m of 2021/22 savings were currently categorised as non-deliverable (red) with a further £3.543m categorised as at risk of delivery (amber);

f)              The performance achieved against the Corporate Plan success measures was as set out in Appendix 2 of the report; 

(2)      That the budget virement relating to electricity charges be approved;

(3)      That the bids for Covid-19 funding set out in Appendices 3 and 4 attached to the report be approved.