Issue - meetings

Quarter 3 Budget Monitoring Report 2020-21

Meeting: 10/02/2021 - Cabinet (Item 296)

296 Quarter 3 Budget Monitoring 2020-21 PDF 1 MB

This report includes 2020/21 budget monitoring information for the end of December 2020.

The projection for the 2020/21 revenue account is a balanced position after Covid-19 pressures, mitigation action and other budget variances are reflected.

The forecast service pressures due to the pandemic have grown since the December report particularly from further loss of income due to the third national lockdown. The overall position has improved, however, as the government has mandated that collection fund deficits arising from reduced levels of council tax and business rates collection are spread over the next three years. These previously reported pressures for the current year budget instead impact on the budget for 2021/22 and future years of the medium-term financial plan (MTFP).

It is proposed in this report that as a result of the improved position, surplus resources of £13.3 million are carried forward into earmarked financial resilience reserves for transformation, Covid-19, and MTFP mitigation in future years.

The updated 2020/21 annual projections for reserve movements, the capital programme and housing revenue account (HRA) are also included in the report.

Additional documents:

Decision:

RESOLVED that Cabinet:-

(a) Note the current budget position for 2020/21; and

(b) Approve capital virements as set out in paragraph 109.

RECOMMENDED that Council:-

(a) Approve the transfer of £13.3 million to earmarked financial resilience reserves for transformation, Covid-19, and MTFP mitigation as set out in paragraph 11; and

(b) Approve the capital virement as set out in paragraph 110.

Voting: Unanimous

Portfolio Holder: Leader of the Council

Reason

To comply with accounting codes of practice and best practice which requires Councils to regularly monitor the annual budget position.

To comply with the council’s financial regulations regarding budget virements.

Minutes:

The Leader presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report included 2020/21 budget monitoring information for the end of December 2020.

In relation to this Cabinet was informed that the projection for the 2020/21 revenue account was of a balanced position after Covid-19 pressures, mitigation action and other budget variances are reflected.

Cabinet was further informed that the forecast service pressures due to the pandemic have grown since the December report particularly from further loss of income due to the third national lockdown, and that the overall position has improved, however, as the government has mandated that collection fund deficits arising from reduced levels of council tax and business rates collection are spread over the next three years. These previously reported pressures for the current year budget instead impact on the budget for 2021/22 and future years of the medium-term financial plan (MTFP).

Cabinet was advised that it is proposed in this report that as a result of the improved position, surplus resources of £13.3 million are carried forward into earmarked financial resilience reserves for transformation, Covid-19, and MTFP mitigation in future years, and that the updated 2020/21 annual projections for reserve movements, the capital programme and housing revenue account (HRA) are also included in the report.