Agenda item

REVENUE BUDGET OUTTURN 2020/21

REPORT OF THE SERVICE DIRECTOR - RESOURCES

To inform Cabinet of the summary position on revenue income and expenditure as at the end of the financial year 2020/21.

Decision:

RESOLVED:

 

(1)       That the report entitled Revenue Budget Outturn 2020/21 be noted;

 

(2)       That a decrease of £866k in the 2020/21 net General Fund expenditure, as identified in table 3 and paragraph 8.1, to a total of £19.379million, be approved;

 

(3)       That the changes to the 2021/22 General Fund budget, as identified in table 3, paragraph 8.2 and paragraph 8.3, a total £377k increase in net expenditure be approved.

 

RECOMMENDED TO COUNCIL: That the net transfer to earmarked reserves, as identified in table 8, of £11.464million, be approved.

 

REASONS FOR DECISIONS:

 

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

 

(2)       Changes to the Council’s balances are monitored and approved.

Minutes:

Audio Recording – 36 Minutes 14 Seconds

 

The Executive Member for Finance and IT presented the report entitled Revenue Budget Outturn 2020/21, including:

 

·                The final quarter saw a significant reduction in forecast spend. The most significant element of this was the decrease in the support required by SLL, due to reducing utility costs (such as by reducing the pool temperatures) and use of furlough;

·                All of the other significant variances were detailed in table 2 starting on page 99;

·                It should be noted that £317k of the forecast movement were areas of spend that were now planned to be delivered in 2021/22;

·                In relation to the parking income position at the bottom of page 104 there were a couple of typos. The total at the bottom in bold for the working budget should be 1,338 and the equivalent number for the outturn should be 1,278. The variance is correct, and all the other numbers in the table are correct;

·                Table 6 on page 110 detailed the year end budget impact of Covid-19. The final sales, fees and charges contribution from Government had yet to be confirmed, but assuming that there were no issues with our claim, then the net impact was a £1.5m additional cost;

·                Table 7 on page 111 showed the impact on the General Fund, which had a balance at the start of the year of just under £9.4m and a year end position (subject to audit) of almost £8.9m. This was just under a £500k reduction;

·                The difference between this and the Covid-19 impact was made up (1) other variances that were not due to Covid-19, (2) total carry-forwards of £719k which would increase spend and therefore decrease the General Fund balance in 2021/22 and (3) the position in relation to sources of funding which was explained on pages 107-109; and

·                The transfers to and from reserves on page 112/3 would be referred on to Full Council for approval.

 

The Service Director – Resources presented the referral from the Finance, Audit and Risk Committee held on 23 June 2021. The Service Director advised Cabinet that the FAR Committee had had a good discussion over matters in the report, particularly the parking income figures and the Income Guarantee.

 

Upon being put to the vote, it was:

 

RESOLVED:

 

(1)       That the report entitled Revenue Budget Outturn 2020/21 be noted;

 

(2)       That a decrease of £866k in the 2020/21 net General Fund expenditure, as identified in table 3 and paragraph 8.1, to a total of £19.379million, be approved;

 

(3)       That the changes to the 2021/22 General Fund budget, as identified in table 3, paragraph 8.2 and paragraph 8.3, a total £377k increase in net expenditure be approved.

 

RECOMMENDED TO COUNCIL: That the net transfer to earmarked reserves, as identified in table 8, of £11.464million, be approved.

 

REASONS FOR DECISIONS:

 

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

 

(2)       Changes to the Council’s balances are monitored and approved.

Supporting documents: