Agenda item

To enable the Committee to review the report of the Corporate Finance and Governance portfolio holder to Cabinet in relation to the updated financial forecast and proposed budget position for 2021/22.

The Committee received the details submitted to the Cabinet on 18 December 2020 in relation to the updated financial forecast and proposed budget position for 2021/22.  In particular, the Committee was advised as follows:

·                     A ‘live’ 10-year forecast was maintained and reported to Members throughout the year.

·                     The most up to date position in December each year was translated into the detailed budget for the following year for consultation with the Resources and Services Overview and Scrutiny Committee.

·                     As part of maintaining a ‘live’ forecast, this report ‘built’ on the last position that was presented to Cabinet on 13 November 2020.

·                     Despite the challenging financial and economic environment, confidence in the long term approach to the forecast remained, which was supported by the forecast risk fund. It is also worth highlighting that the managed position in terms of reserves continued to enable the Council to respond to exceptional events such as the COVID 19 crisis.

·                     At this stage of the budget process, there was a net deficit of £1.647m forecast in 2021/22, an improvement of £0.128m compared with the £1.775m deficit reported to Cabinet on 13 November 2020. Therefore, the forecast remained within the financial boundaries set out in the long-term plan.

·                     Although subject to potential changes over the remaining budget-setting period, the current forecasted deficit of £1.647m would be met by drawing money down from the forecast risk fund.

·                     At the time of finalising this report, the Local Government Finance Settlement for 2021/22 had yet to be announced. They would be included in the figures that would be presented to Cabinet in January 2021 when it considered its final budget proposals for recommending to Full Council in February 2021. The budget included a council tax levy increase of £5, with this level of increase expected to be confirmed as allowable as part of the finance settlement announcements. No revenue support grant had been included in the budget for 2021/22, but similarly to the late announcement last year, the Government could provide some funding again next year, especially when reflecting on the financial impact of COVID 19 on Local Authorities.

·                     Once the final position for 2021/22 was determined, the remaining years of the 10-year forecast would be revised, set against the budget position for 2021/22 and would be reported to Members later in the budget setting process.

In addition to the above, the Committee was advised of the following in respect of reserves, provisions and one-off sums for specific projects:

The Committee thereupon undertook its scrutiny of the Financial Forecast / Budget Proposals for 2021/22.

Prior to the meeting, questions that the Committee Members had raised had been circulated to the relevant Cabinet Members and Officers in order to enable responses to be provided. Those questions and responses form the Appendix to these Minutes.

Members of the Cabinet, accompanied by the appropriate Management Team Member or other Senior Officer, attended the meeting in turn and assisted the Committee in its enquiry of the matters put to them in respect of the budget position and allocation of funds.

Having considered all of the information that had been provided it was RESOLVED that the CABINET be RECOMMENDED that:

(a)       In respect of future outturn positions on the Council's annual budget, to allocate as a priority any available underspend following permitted carry forwards to extend further the measures to achieve the Back to Business Agenda of the Council.

(b)       Further to (a), to establish a Business Roundtable for the District as part of the Back to Business Agenda and to inform that Agenda going forward.

(c)     To reassess all the current reserves, provisions and one off sums allocated by the Council to determine whether they were still required, relevant to the Council’s Corporate Plan and the associated sum was at the appropriate level and:

(i)      to re-allocate sums such as those for the Clacton Town Centre Fountain and Residents Free Parking (where the cost has been incorporated in the base revenue budget) to more closely align with the Corporate Plan priorities of the Council.

(ii)      to identify the specific intentions for the £1.585M for Business Investment and Growth Projects reserve or otherwise look to reallocate that reserve.

(iii)     To allocate a further £56k to resourcing public realm improvements across the District (supplementing and extending the £44k set aside to fund ‘2 One year fixed term posts to support improvements to the overall appearance of the District') thereby allocating a total of £100k to this initiative in total.

(iv)    From the reallocation process, and in recognition of the additional £110k in recycling credits achieved by the Council in 2020/21, to identify £10k to improve recycling bring sites operated by the Council in the District to improve the attractiveness of those sites, signage at and to those sites and thereby further encourage their use and address relevant issues at those sites.

(d)       To request that proposals for use of the Tendring Community Fund be developed swiftly so that these can be put in front of a meeting of the Portfolio Holder Working Party on the Tendring Community Fund without delay.

(e)       To identify whether existing funding in the revenue budget and reserves, provisions and one-off sums enables the Council to adequately support co-ordinated measures to address the mental health needs of the local population as we ultimately come out of covid-19 pandemic restrictions and if this is found to be insufficient to look to allocate further resources as necessary to address those needs..

(f)      To pro-actively assess and monitor the resources required to deliver a dynamic and expansive Tourism Strategy for the District (and the Year 1 delivery plan to accompany that Strategy) to maximise the advantage to the District as soon as covid-19 pandemic restrictions are lifted and extending beyond the normal summer season.

It was further RESOLVED that:

(a)       The work underway in respect of ‘auditing' one off sums and the schemes they are intended to fund and to review progress with this at the March meeting of the Committee. That this review should include details of the original decision to allocate the funds and an assessment as to whether the scheme is on target to be delivered.

(b)       The receipt, allocation, timing and use of section 106 funds to support community infrastructure associated with development in the District be reviewed by the Committee as part of its work programme.

(c)       The Chairman of the Committee is requested to urge the Portfolio Holder for the Environment to undertake further efforts with Essex County Council and Highways England to secure a good level of cleaning on the A120 and A133 in view of the extensive uses of those roads and the impression given to visitors that litter is acceptable from the current level of rubbish alongside those roads.

(d)     That the Community Leadership Overview and Scrutiny Committee be invited to consider the mental health support to residents referenced above in recommendation to the Cabinet (e).