Agenda item

To provide an overview of the Council’s financial position against the budget as at the end of December 2021 and to present an updated long term forecast.

RESOLVED -

(1)       That, in respect of the financial performance against the budget at the end of December 2021, Cabinet agrees:

(a)    that the position as at December 2021 be noted; and

(b)    that the proposed in-year adjustments to the budget, as set out in Appendix H to item A.9 of the Report of the Corporate Finance & Governance Portfolio Holder, be made.

(2)       That, in respect of the Updated Long Term Forecast, Cabinet agrees that the latest position be noted and that the Resources and Services Overview and Scrutiny Committee be consulted on the most up-to-date position.

Cabinet had before it a report of the Corporate Finance & Governance Portfolio Holder (A.9) which provided it with an overview of the Council’s financial position against the budget, as at the end of December 2021 and also presented it with an updated long term forecast.

In respect of the in-year financial position at the end of December 2021:

It was reported that the position to the end of December 2021 showed that, overall, the General Fund Revenue Account was underspent against the profiled budget by £8.044m (after excluding variances against COVID 19 grant supported activities, such as business grants, this position was revised to a net overspend of £4.243m). It was acknowledged that other expenditure or income trends could still be developing / emerging with the position also largely reflecting the timing of other general expenditure and/or income budgets. However, any significant issues arising to date had been highlighted and comments provided as necessary within the Portfolio Holder’s report.

Members were informed that, in respect of other areas of the budget such as the Housing Revenue Account, capital programme, collection performance and treasury activity, apart from additional details set out in this report, there were no other major issues that had been identified to date. Any emerging issues would be monitored and updates provided in future reports, which would include their consideration as part of updating the long term financial forecast.

Cabinet was made aware that some necessary changes to the 2021/22 budget had been identified which were set out in Appendix H, with an associated recommendation also included within the Portfolio Holder’s report.

Members were advised that the net impact of the budget adjustments would be moved to, or from, the Forecast Risk Fund. At the end of the third quarter, it had been possible to make an additional contribution to the fund of £123k, which supported the requirement set out in the long term forecast of identifying in-year savings of £500k each year, where possible.

In respect of the updated long term financial forecast:

It was reported that there had been no changes made to the forecast position considered by Full Council on 15 February 2022 as part of agreeing the detailed budget for 2022/2023.

Cabinet was aware that the identification of on-going savings remained an important element of the long-term financial plan. The developing zero based framework in which to identify the required level of savings formed part of the key priority actions set out in the Council’s Corporate Plan.

It was important to continue to deliver against the longer-term approach to the budget as it continued to provide a credible alternative to the more traditional short-term approach, which would require significant additional savings to be identified much earlier in the financial cycle.

Having considered all of the information contained in the Portfolio Holder’s report and its appendices:-

It was moved by Councillor Neil Stock OBE, seconded by Councillor Paul Honeywood and:-

RESOLVED -

(1)       That, in respect of the financial performance against the budget at the end of December 2021, Cabinet agrees:

(a)    that the position as at December 2021 be noted; and

(b)    that the proposed in-year adjustments to the budget, as set out in Appendix H to item A.9 of the Report of the Corporate Finance & Governance Portfolio Holder, be made.

(2)       That, in respect of the Updated Long Term Forecast, Cabinet agrees that the latest position be noted and that the Resources and Services Overview and Scrutiny Committee be consulted on the most up-to-date position.