Issue - meetings

Recommended that the changes to the capital programme detailed in Appendix 1 of the report be approved.

Councillor R C Evans, Cabinet Member for Council Finance & Governance, presented the report of the Director: Finance & Human Resources (Chief Financial Officer).

RESOLVED – that the changes to the capital programme as detailed in Appendix 1 of the report be approved.

Councillor R C Evans, Cabinet Member for Council Finance & Governance presented the report of the Director: Finance & Human Resources, Chief

Finance Officer.

This was the first Financial Monitoring Report for 2021/22, as expected, there were residual COVID-19 pressures, which included income shortfalls in relation to restricted opening at facilities in the early part of the year and potential impacts on business rates collection; a key funding stream for the Council.  It was too early in the year to accurately predict the ongoing impact of Coronavirus and the speed at which the economy would recover; the position would continue to be monitored and updates provided throughout the year.

The projected service pressures stood at £4.24m. With the additional £1m anticipated funding shortfalls related to business rates (which would result in a deficit balance carried forward to next year on the collection fund), the total pressure was £5.24m against which the £5.18m emergency response funding would be applied. This would leave a residual projection of an overspend of £0.06m by year-end. This was before using the Council’s budget contingency. 

It was early in the year and projections would be updated and refined, taking into account the release of lockdown and any residual impact of Covid-19 on service areas.

As well as the potential ongoing impact of Covid-19, the funding outlook for the medium term remained uncertain due to the impact of the major changes to the Local Government Finance System being deferred until at least April 2022 with no confirmed date for implementation; changes to the New Homes bonus system, expected to come into force in 2022/23; and changes to the Adult Social Care (ASC) funding through the long awaited ASC Green paper also expected.

It was unclear whether the Government would announce another one-year “spending round” or a medium-term Comprehensive Sending Review later in 2021, this would inform the Council’s 2022/23 and medium term Service & Financial Planning Strategy. However, it was likely that with the significant increase in the Government’s debt as a result of responding to the pandemic that the financial climate ahead would remain one of significant financial challenge over the medium-term for local authorities.

Members welcomed the report noting the Council’s relatively strong financial position despite the COVID-19 pandemic.

The Leader of the Liberal Democrat/Independent Group expressed support and noted the need for a medium-term finance settlement from the Government.

RESOLVED that –

i) The 2021/22 revenue budget position which continued to be impacted by the Covid-19 pandemic be noted.

ii) The increase in the Councillors Pride Fund to £5k per ward member for 2021/22 and 2022/23 be approved.

iii) The position in relation to capital spend be noted and recommend that Full Council approve the changes to the capital programme detailed in Appendix 3.

iv) The collection rates for NNDR, council tax and sales ledger be noted.