This report sets out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account (HRA) for 2021/22, as well as performance against the measures of success published in the Council’s Corporate Plan.

The Director of Finance submitted a report setting out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account (HRA) for 2021/22 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 – General Fund Outturn;

•  Appendix 2 – Housing Revenue Account (HRA) Outturn;

•  Appendix 3 – Capital Programme Outturn;

•  Appendix 4 – Savings;

•  Appendix 5 – Delivery Fund;

•  Appendix 6 – Reserves Position as at 31st March 2022;

•  Appendix 7 – Corporate Plan Measures for Quarter 4;

•  Appendix 8 – Corporate Plan Measures for Quarter 4 (Charts);

•  Appendix 9 – Corporate Plan Projects for Quarter 4;

•  Appendix 10 – Debt Write-Offs for approval

The report noted that the budget for 2021/22 had been prepared at the height of the Covid-19 pandemic during a period of extreme uncertainty.  It had included £20.208m of savings to be delivered and the planned use of £2.776m of earmarked reserves to deliver a balanced budget position with a total budgeted service expenditure of £124.799m.  The actual outturn position was positive net variance of £3.177m, inclusive of £1.138m of net transfers from reserves.  The outturn position for net service expenditure was £131.132m, inclusive of approved net transfers from reserves of £1.936m, resulting in an adverse net variance of £6.033m. This was an improvement of £1.963m from the projected outturn position reported to the Committee at its meeting on 7 March 2022 (Minute 84 refers). The £6.033m adverse variance included adverse variances of £2.664m within Adult Care and Health Services and of £3.447m within Economic Growth and Neighbourhood Services, which were offset by positive variances of £0.078m on other service budgets.  Brighter Futures for Children had delivered within the contract sum.  Detailed explanations for these variances were set out in the report.  It had previously been agreed that the full overspend on services would be met from a combination of the £4.523m general Covid-19 support grant (contained within Other Corporate Budgets) and £3.844m corporate contingencies. There was no longer a requirement to make the £2.776m call on reserves that was previously approved.

The actual outturn position on Corporate Budgets was a positive net variance of £9.210m, an improvement of £0.940m from the position reported to the Committee at its meeting on 7 March 2022 (Minute 84 refers). This position included £0.798m of approved net transfers to reserves.  It had previously been assumed that the positive variance on Corporate Budgets would be required to fund the adverse variance on service expenditure. However, mainly as a result of the adverse variance on service expenditure being lower than anticipated there was now an overall surplus of £3.177m.  One carry-forward request totalling £0.050m had been submitted and if approved would leave a remaining surplus of £3.127m, which would be added to earmarked reserves. It was recommended that this balance be transferred to the Capital Financing Smoothing Reserve to fund capital projects that were currently on hold in 2022/23 pending the identification of funding.

The original budget for 2021/22 had included assumed savings of £20.208m, including £5.125m of savings brought forward from the previous year.  A total of £14.319m of ongoing savings had been delivered in 2021/22, and £3.844m of savings had been removed as part of the 2022/23 budget setting process on the basis that they were no longer deemed deliverable. This left a residual balance of £2.045m to be carried forward for delivery in future years.  This balance would be added to the £8.179m of savings already included in the 2022/23 budget to give a revised savings target of £10.224m.  Savings delivery would continue to be monitored and reported on regularly throughout 2022/23.

The report explained that the provisional outturn for the Housing Revenue Account (HRA) was a positive net variance compared to budget of £0.387m which resulted in a net drawdown from HRA reserves of £1.502m, comprised of a drawdown of £1.575m from the main HRA Reserve and a transfer of £0.073m to the North Whitley PFI Reserve.  The provisional General Fund Capital Programme outturn was a £46.039m positive variance against the adjusted budget of £94.738m. Approval was sought for an increase to the Renewable Energy scheme 2022/23 budget within the Capital Programme of £0.852m.  The provisional HRA Capital Programme outturn was a £7.352m positive variance against the adjusted budget of £28.092m.

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

Resolved –

(1)      That the Committee note:

a)    That the provisional General Fund revenue outturn position for 2021/22 was a £3.177m positive net variance;

b)    That the provisional Housing Revenue Account outturn position for 2021/22 was a net £1.502m transfer from HRA Reserves;

c)    That the provisional General Fund Capital Programme outturn position for 2021/22 was a £46.039m positive net variance;

d)    That the provisional HRA Capital Programme outturn position for 2021/22 was a £7.352m positive net variance;

e)    That £14.319m of agreed savings had been delivered in year with £2.045m of non-delivered savings being carried forward into future years;

f)     That £2.421m of Capital Receipts had been used to fund transformation in accordance with the Capitalisation Directive (Appendix 5);

g)    The performance achieved against the Corporate Plan success measures as set out in Section B of the report and Appendices 7-9.

(2)      That the service request to roll-forward funds totalling £0.050m into 2022/23 to complete future programmes of work be approved;

(3)      That the remaining balance of £3.127m be transferred to earmarked reserves as set out in Appendix 6;

(4)      That the net roll-forwards of budget within the General Fund Capital Programme totalling £39.692m be approved, resulting in a revised Capital Programme net budget of £131.765m for 2022/23;

(5)      That Spend approval and an increase to the Renewable Energy scheme 2022/23 budget within the Capital Programme of £0.852m, specifically relating to the electric vehicle charging infrastructure at Bennet Road be agreed, to be funded from the Capital Financing Smoothing Reserve as set out in paragraph 7.7 of the report, increasing the Capital Programme net budget to £132.617m;

(6)      That the net roll-forwards of budget within the HRA Capital Programme totalling £7.353m be approved, resulting in a revised HRA Capital Programme net budget of £35.555m for 2022/23;

(7)      That the write-off of debts as set out in Appendix 10 be approved relating to:

a) Non-Domestic Rates - £553,105.18;

b) Sundry Debt - £427,781.19;

c) Housing Benefit Overpayments - £50,690.31.