The Director of Finance submitted a report setting out the projected revenue and capital outturn positions for 2021/22 for the General Fund and the Housing Revenue Accounts as at the end of September 2021 (Quarter 2, and summarising 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 2

·     Appendix 2 – Corporate Plan Measures for Quarter 2

·     Appendix 3 – Corporate Plan Measures for Quarter 2 (Charts)

The report explained that the forecast General Fund revenue outturn position as at the end of Quarter 2 was an overspend on service expenditure of £8.176m. This included a structural overspend of £4.201m on DACHS that would need to be addressed as part of the updating of the Medium-Term Financial Strategy, and an overspend on DEGNS of £3.567m, including £4.470m of costs that were attributable to Covid-19.  It was proposed to fund this overspend through the use of Covid-19 support grant that was available for 2021/22 but had not previously been allocated. It was also proposed to utilise £3.844m of corporate contingencies and £1.838m of the £2.776m of earmarked reserves that had been agreed in the 2021/22 budget.  The use of this combination of contingencies and one-off resources meant that a break-even position was now projected for 2021/22.

The report also explained that £4.145m of savings had been delivered to date in the current financial year, with a further £8.126m of savings on track to be delivered by March 2022. £4.700m of savings were currently categorised as non-deliverable with a further £3.237m categorised as at risk of delivery.  The Housing Revenue Account (HRA) was projecting an underspend of £0.874m as at the end of Quarter 2, the General Fund Capital Programme was forecast to underspend by £30.176m in 2021/22, and the HRA Capital Programme was forecast to underspend by £9.873m in 2021/22.  The report noted that an additional Open Spaces Improvement scheme totalling £0.153m, which was fully funded by s106 monies, had been added to the Capital Programme. Details of the scheme had been published in the Decision Book (Issue 625 refers), and the Committee were asked to formally approve the scheme’s inclusion in the Capital Programme.

Resolved –

(1)      That it be noted that:

a)             The forecast General Fund revenue outturn position as at the end of Quarter 2 was a net break-even position after use of Covid-19 support funding, corporate contingencies and use of £1.838m of the £2.776m of earmarked reserves that had been agreed in the 2021/22 budget;

b)       The Housing Revenue Account was forecast to underspend by £0.874m as at the end of September 2021;

c)       The General Fund Capital Programme was forecast to underspend by £30.176m;

d)       The HRA Capital Programme was forecast to underspend by £9.873m;

e)       £4.145m of 2021/22 savings had been delivered (blue) with a further £8.126m of savings on track to be delivered (green) by March 2022. £4.700m of savings were currently categorised as non-deliverable (red) with a further £3.237m categorised as at risk of delivery (amber);

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

(2)      That the £8.176m overspend on services be funded through use of the Covid-19 support grant that was available for 2021/22 but had previously been unallocated, in addition to £3.844m of corporate contingencies and £1.838m of the £2.776m of earmarked reserves that had been agreed in the 2021/22 budget;

(3)      That the Open Spaces Improvement scheme be added into the Capital Programme.