Agenda item

REPORT OF THE SERVICE DIRECTOR - RESOURCES

To consider the Second Quarter Revenue Monitoring report 2021/22.

RECOMMENDED TO CABINET:

(1)       That Cabinet notes the report

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

REASON FOR RECOMMENDATIONS: 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.

Audio Recording – 24:43

The Service Director – Resources presented the report on Second Quarter Revenue Budget Monitoring 2021/22 and drew attention to the following:

·                The first major variance at Table 3 was on Housing Benefit overpayments; there were fewer overpayments last year, which caused a budget pressure at the time but has since led to less in repayment/bad debt in this period and therefore there's a positive impact this year. This change is reflected as a one off and it was hoped to get back to normal in future.

·                The other significant variances were on leisure management forecasts; when the forecasts were made last month there was a risk that improvement would not be as positive as hoped. There was a positive recovery reported by Stevenage Leisure Ltd and therefore rather than the forecast of a £2 million level of support it was assumed that would come down to 1.1 million.

·                In relation to car parking fee income estimates for the year. The position to date is back to around to the 80% of normal level of parking and it was assumed this would gradually increase throughout the year; however, if the latest COVID variant if impacts people going into town and doing shopping, then that forecast may turn out to be incorrect.

·                The working budget had been increased in quarters 1, 2 and 4 to accommodate changing projections.

·                The position in table 8.15 based on those forecasts is quite a positive picture in terms of general fund balance carried forward, which does give the Council some leeway in terms of the potential for increased costs both next year and potentially year after in relation to COVID, where it continues to have an impact on both income and creating additional costs.

The following Members asked questions:

·                Councillor Terry Hone

In response to questions the Service Director – Resources advised that the income guarantee only covers the first three months and the losses incurred in quarter two and a forecast to incur more losses in quarter three and quarter four are not covered. The scope of the sales division charge contribution only covers sales fees and charges; things like homeless accommodation, as an expenditure, are therefore not covered at all - that is where the big mismatch between the additional costs and lost income are occurring, and the amount that has been supported by government.

On the vote it was:

RECOMMENDED TO CABINET:

(1)       That Cabinet notes the report

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

REASON FOR RECOMMENDATIONS: 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.