Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To inform Cabinet of the summary position on revenue income and expenditure forecasts for the financial year 2021/22, as at the end of the second quarter.

RESOLVED:

(1)  That Cabinet noted this report.

(2)  That Cabinet approved the changes to the 2021/22 General Fund budget, as identified in table 3 and paragraph 8.2, a £1.256million decrease in net expenditure.

(3)  That Cabinet noted the changes to the 2022/23 General Fund budget, as identified in table 3 and paragraph 8.2, a total £68k decrease in net expenditure. These will be incorporated in the draft revenue budget for 2022/23.

REASON FOR DECISIONS: Members are able to monitor, make adjustments within the overall budget framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.

The Executive Member for Finance and IT presented the report entitled Second Quarter Revenue Monitoring and noted:

·         Significant variances were detailed in Table 3 and these generally related to Covid 19, such as Housing Benefit overpayment, leisure support and car park income.

·         Forecast reflects the impact of Covid 19 up to the end of year and assumed some recovery by this point. While this seemed a sensible position when the forecasts were compiled, the emergence of the Omicron variant will affect this and it will become clear the full impact as possible further restrictions are announced.

·         After inclusion of General Grant and Sales Fees and Charges Compensation, it was expected that around £1million will have to come from reserves to meet needs, despite government promises to support councils.

·         The General Fund balances had shown a small increase, as detailed in Table 6.

·         Reserves, whether specific or general, can only be spent once.

·         Support given to Stevenage Leisure to support the health and wellbeing services at leisure centres in the district had been prudent and the recovery of these facilities showed that this was an important decision to make.  

Councillor Ian Albert proposed and Councillor Judi Billing seconded and, following a vote, it was:

RESOLVED:

(1)  That Cabinet noted this report.

(2)  That Cabinet approved the changes to the 2021/22 General Fund budget, as identified in table 3 and paragraph 8.2, a £1.256million decrease in net expenditure.

(3)  That Cabinet noted the changes to the 2022/23 General Fund budget, as identified in table 3 and paragraph 8.2, a total £68k decrease in net expenditure. These will be incorporated in the draft revenue budget for 2022/23.

REASON FOR DECISIONS: Members are able to monitor, make adjustments within the overall budget framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.