Agenda item

2020/21 Quarter 1 Performance and Monitoring Report

This report sets out the projected revenue and capital outturn positions for 2020/21 for both the General Fund and the Housing Revenue Accounts as at the end of June 2020, and the performance against the measures of success published in the Council’s Corporate Plan.

Minutes:

The Executive Director of Resources submitted a report setting out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account as at the end of June 2020 (Period 3). These forecasts included the additional pressures arising as a result of Covid-19 and associated government funding.  The report set out the projected revenue and capital outturn positions for 2020/21 for both the General Fund and the Housing Revenue Accounts.  The forecast General Fund revenue outturn position as at the end of Quarter 1 was a £3.7m overspend.  This forecast included gross revenue pressures of £22.139m arising as a direct result of Covid-19.

The Housing Revenue Account (HRA) was currently projecting an underspend of (£0.480m) as at the end of Quarter 1.  The General Fund Capital Programme was forecast to underspend by (£105.523m).  This was predominantly because the £80m budget for commercial property would not be used.  The HRA Capital Programme was currently forecast to spend to budget.  The combined gross revenue and capital pressures as a result of Covid-19 totalled £22.439m.  This was partially offset by a total allocation (£9.775m) of Central Government general support grant and an estimated (£0.837m) furlough grant claim and an estimated (£6m) in income compensation.  This gave a net projected pressure caused by Covid-19 of £5.827m.

 

Central Government had announced that it would compensate Local Authorities for 75% of qualifying lost income over and above 5% of 2020/21 income budgets for 2020/21 only. Whilst the Government had published the principles for eligible income compensation, the detailed guidance setting out exactly what income would qualify was still awaited, but it had been confirmed that income relating to commercial property investments would not be included.  The current estimate was that up to (£6m) of income losses could be compensated, dependent upon the guidance, and subject to fluctuations in the level of lost income.  Changes to this assumption and the impact on the forecast outturn position would be contained in future reports.  The financial implications of Covid-19 would continue to be refined and reported on a monthly basis.

 

The report also set out performance against the measures of success published in the Council’s Corporate Plan. 

 

The draft report had the following documents appended:

·       Appendix 1 – Financial Monitoring for Quarter 1;

·       Appendix 2 – Performance Report for Quarter 1.

 

Resolved -

(1)      That it be noted that the forecast General Fund revenue outturn position as at the end of June 2020 was a net overspend of £3.700m, due to an overspend of £22.850m on services budgets mitigated by an underspend of £2.538m on corporate budgets and anticipated Government Covid-19 Grants of £16.612m which comprised £9.775m of received general support funding; an estimated £0.837m furlough claim and an estimated £6.000m income compensation claim;

(2)      That the Housing Revenue Account was forecast to underspend by £0.480m as at the end of June 2020 be noted;

(3)      That the General Fund Capital Programme was forecast to underspend by £105.523m and the HRA Capital Programme was forecast to spend to budget as at the end of June 2020 be noted;

(4)      That the performance achieved against the Corporate Plan success measures as set out in Section 11 and Appendix 2 of the report be noted.

Supporting documents: