Decision details

General Revenue Fund

It is recommended that Cabinet:

i)  Notes the forecast outturn position for business as usual activities is a £7.11M deficit, as outlined in paragraph 4 and in paragraph 1 of appendix 1. 

ii)  Notes the financial position arising from COVID-19 is a deficit of £0.36M, as outlined in paragraph 5 and in paragraph 3 of appendix 1.

iii)  Notes the performance of treasury management, and financial outlook in paragraphs 8 to 11 of appendix 1.

iv)  Notes the forecast year end position for reserves and balances as detailed in paragraphs 12 and 13 of appendix 1.

v)  Notes the Key Financial Risk Register as detailed in paragraph 14 of appendix 1.

vi)  Notes the performance against the financial health indicators detailed in paragraphs 18 and 19 of appendix 1.

vii)  Notes the forecast outturn position outlined in the Collection Fund Statement detailed in paragraphs 23 to 26 of appendix 1.

viii)  Notes that Children’s Social Care continue to look at ways to mitigate the in-year deficit reported here and future year costs, as part of their Destination 2022 initiative. It is anticipated the in-year position will require use of corporately held funds via either the corporate contingency and/or the Social Care Demand Reserve, with such use being considered during quarter 3.  However, Cabinet is asked to approve an initial £1.3M in 2021/22 for staffing related spend being incurred as a part of this package to ensure existing service critical posts have adequate budget provision, to be funded by the corporate contingency budget or the Social Care Demand Reserve. A final decision on the funding of this element to be delegated to the S151 officer, following consultation with the Cabinet Member for Finance and Capital Assets, with the future years financial impact arising from the Destination 2022 measures in Children’s Social Care to be included in the MTFS to be agreed in February 2022.

Housing Revenue Account

It is recommended that Cabinet:

ix)  Notes the forecast outturn position on business as usual activities is a surplus of £0.92M as outlined in paragraph 6 and paragraph 20 of appendix 1.

x)  Notes that a favourable variance of £0.57M is forecast arising from COVID-19, as outlined in paragraph 6 and paragraph 21 of Appendix 1.

Capital Programme

It is recommended that Cabinet:

xi)  Notes the revised General Fund Capital Programme, which totals £437.08M as detailed in paragraph 1 of appendix 2.

xii)  Notes the HRA Capital Programme is £340.81M as detailed in paragraph 1 of appendix 2.

xiii)  Notes that the overall forecast position for 2021/22 at quarter 2 is £174.91M, resulting in a potential surplus of £5.73M, as detailed in paragraphs 4 and 5 of appendix 2.

xiv)  Notes that the capital programme remains fully funded up to 2025/26 based on the latest forecast of available resources although the forecast can be subject to change; most notably regarding the value and timing of anticipated capital receipts and the use of prudent assumptions of future government grants to be received.

xv)  Approves slippage and rephasing of £42.63M (£10.34M of General Fund and £32.30M of HRA) as detailed in paragraph 5 and 7 of appendix 2. Noting that the movement has zero net movement over the 5-year programme.

xvi)  Notes that no variances are forecast arising from COVID-19 as detailed in paragraph 8 of appendix 2.

To ensure that Cabinet fulfils its responsibilities for the overall financial management of the Council’s resources.

Not applicable.