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 - March 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.

4.       The monitoring position of the Council’s capital programme to the end of January 2022:

·       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 were 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 that the forecast outturn position will continue to be reviewed to ensure a balanced forecast outturn position and financial sustainability can be achieved be acknowledged;

 

(4)      the fact that a grant offer from the Rural Payments Agency for Countryside Stewardship Higher Tier funding has now been formally accepted and a fully funded revenue estimate of £0.483m and a fully funded capital estimate of £0.012m have been approved in accordance with the Council’s Financial Procedure Rules be noted;

 

B.       in respect of the Capital Programme:

 

(5)      the spending profiles across financial years for the approved capital programme, as set out at paragraph 7.1 of the report, be noted;

 

(6)      the latest capital expenditure position as at 31 January 2022 of £22.093m, as set out at paragraph 6.4 of the report; the latest full year forecast is £41.761m, as set out at paragraph 7.6 of the report, be noted;

 

(7)      the explanations of variances to project budgets, as set out at paragraph 7.7 of the report, be noted;

 

(8)      a supplementary capital estimate for £0.455m, as detailed in paragraph 7.11 of the report, be approved; and

 

(9)      the fact that capital resources will be managed by the Executive Director 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, as set out at paragraph 7.14 of the report, be noted.

 

Reasons for the Decision:

 

To ensure the Cabinet is 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: