Agenda item

Financial Management 2021/22 to 2024/25 and Framework for Change 2020 - Revenue and Capital Budget Update 2021/22 including the Financial Impact of COVID-19 on the 2021/22 Budget - February Update

Report of the Executive Director of Corporate Resources and Customer Services

Minutes:

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services that advised of:

 

(1)

the current financial implications of COVID-19 on the 2021/22 Budget;

 

(2)

the current position relating to the 2021/22 revenue budget;

 

(3)

the current forecast on Council Tax and Business Rates collection for 2021/22; and

 

(4)

the monitoring position of the Council’s capital programme to the end of November 2021 in respect of:

 

·       the forecast expenditure to year end

·       variations against the approved budgets and an explanation of those variations for consideration by Members.

·       updates to spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects are also presented for approval.

 

Decision Made:     

 

That:

 

(A)

in respect of the Revenue Budget:

 

(1)

the current financial implications of COVID-19 on the 2021/22 Budget together with the key issues that will influence the final position be noted;

 

(2)

the current position relating to the 2021/22 revenue budget be noted;

 

(3)

the financial risks associated with the delivery of the 2021/22 revenue budget be recognised and it be acknowledged that the forecast outturn position will continue to be reviewed to ensure a balanced forecast outturn position and financial sustainability can be achieved; and

 

(4)

the Government grant funding that has been received to support the Council and businesses with the response to the pandemic, and which will be distributed in accordance with central government guidance, including the scheme across the Liverpool City Region, funded by Additional Restriction Grant, which will provide additional support to local businesses be noted; and

 

(B)

In respect of the Capital Programme:

 

(1)

the spending profiles across financial years for the approved capital programme (paragraph 6.1) be noted;

 

(2)

the latest capital expenditure position as at 31 December 2021 of £20.786m (paragraph 6.4); and the latest full year forecast being £41.882m (paragraph 6.6) be noted;

 

(3)

the explanations of variances to project budgets (paragraph 6.7) be noted; and

 

(4)

 

it be noted that a deed of variation is required relating to the grant funding agreement with the Liverpool City Region Combined Authority relating to a housing development in Netherton being undertaken by Sandway Homes Limited, and that the total amount of funding available is unaltered (paragraph 6.10); and

 

(5)

it be noted that the capital resources will be managed by the Executive Director of Corporate Resources and Customer Services to ensure the capital programme remains fully funded and that capital funding arrangements secure the maximum financial benefit to the Council (paragraph 6.13).

 

 

 Reasons for the Decisions:

 

To ensure Cabinet are informed of the current position in relation to the 2021/22 revenue budget, including COVID19 pressures and additional funding being made available to the Council.   

 

To provide an updated forecast of the outturn position with regard to the collection of Council Tax and Business Rates. 

 

To keep members informed of the progress of the Capital Programme against the profiled budget for 2021/22 and agreed allocations for future years.

 

To progress any changes that are required in order to maintain a relevant and accurate budget profile necessary for effective monitoring of the Capital Programme.

 

To approve any updates to funding resources so that they can be applied to capital schemes in the delivery of the Council’s overall capital strategy.

 

 Alternative Options Considered and Rejected:

 

Not applicable.

 

 

 

Supporting documents: