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 - September Update

Report of the Executive Director of Corporate Resources and Customer Services

Minutes:

Further to Minute No. 45 of the meeting of the Cabinet held on 2 September 2021 the Committee considered the report of the Executive Director of Corporate Resources and Customer Services that advised of:

 

(1)

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

 

(2)

the current forecast revenue outturn position for the Council for 2021/22;

 

(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 July 2021 relating to:

 

  • 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.

 

 

The Cabinet had resolved (Minute No. 45) 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; and

 

(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;

 

B.

In respect of the Capital Programme:

 

(1)

the spending profiles across financial years for the approved capital programme, as outlined within paragraph 7.1of the report, be noted;

 

(2)

the Council be recommended to approve a supplementary capital estimate of £1.875m for the development of Southport Town Deal projects, as outlined within paragraph 7.10 of the report;

 

(3)

the Council be recommended to approve a supplementary capital estimate of up to £2.500m for the pre-development phase of the Marine Lake Events Centre, subject to the bid to the Liverpool City Region Combined Authority to fund the works being successful, as outlined within paragraph 7.10 of the report;

 

(4)

the latest capital expenditure position as at 31 July 2021 of £9.316m, as outlined within paragraph 7.3 of the report, together with the latest full year forecast of £45.475m, as outlined within paragraph 7.4, be noted;

 

(5)

the explanations of variances to project budgets, as outlined within paragraph 7.7 of the report, be noted; and

 

(6)

it be noted 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 outlined within paragraph 7.13 of the report.

 

Members of the Committee asked questions/commented on the following issues:

 

·        the supplementary capital estimate of £1.875m for the development of Southport Town Deal projects and potential revenue implications associated with the proposals

·        a concern was expressed at the governance arrangements of the Southport Town Deal Board in relation to Southport elected Member involvement

·        the large reduction in capital spending from £46.1m in 2021/22 to £7.4m in 2023/24

·        the expenditure on the essential repairs at Dunes Splashworld and the Southport Market development

·        it was acknowledged that the majority of the Capital Programme would be funded via grants

·        the financial pressures on the Children’s Social Care budget associated with the cost of Placements and Packages

·        in respect of Adult Social Care the report did not mention the impact of Brexit associated with labour shortages in the care sector nor in the delivery of the capital programme or some issues in the revenue budget

·        in respect of the Operational In-House services capital programme information was sought on which of the existing flood management/coastal defence schemes related specifically to Maghull bearing in mind the recent flooding issues in the area; and what schemes were in the pipeline and how would they be funded

·        the progress in the delivery of the Disabled Facilities Grant and ensuring statutory compliance with regulations

 

RESOLVED:

 

That the financial monitoring report and the decision taken by Cabinet in respect of this matter be noted.

 

 

 

 

Supporting documents: