Issue - meetings

(a)                    2021/22 Financial Outturn Report

The Cabinet Member for Finance, Governance and Customer Services presented the report of the Director: Finance and Human Resources in relation to the 2021/22 Financial Outturn.

The estimated revenue outturn for the last financial year would be within budget by £48,000.  The year end position had allowed some funds to be set aside to support the medium term financial strategy.  Capital spending at year end was £57m against an approved budget of £73m.  The programme of spending continued to be affected by the coronavirus pandemic.  However all schemes were now in progress with some being rephrased into the current year creating treasury management benefits.  The pandemic continued to have an impact on collection rates for 2021/22, however at the end of the year income collection was ahead of the target set for Council tax and business rates.  Collection rates in relation to the sales ledger was slightly behind target. 

The unaudited accounts generated for Nuplace showed a generated profit of £407,000 with a dividend of £163,000 paid to the council as its sole investor.  An additional sum of £1.8m from net additional interest and marginal costs had also been received with the financial benefits being invested into front line services.  Since 2009 the council had achieved savings of £133m including £7m during the last financial year.  Despite the continued financial pressures, the council had ended the year within budget.

RESOLVED -   that:

a)    the Revenue outturn position for 2021/22, which remains subject to audit by the Council’s external auditors, and related virements in Appendix 3 be approved;

b)   the transfers and changes to reserves and associated approval to the relevant members of the Senior Management Team (as determined by the Chief Executive) and after consultation with the relevant Cabinet Member to spend the reserves detailed in section 5 and Appendix 5 be approved;

c)    the Capital outturn position and related supplementary estimates, re-phasing and virements showing Appendix 4 and as summarised in the report be approved;

d)   delegated authority to the Director: Finance & HR to make any changes required, in consultation with the Cabinet Member for Finance, Governance & Customer Services be granted;

e)    the performance against income targets be noted; and

f)       the 2022/23 Public Health Grant and update to the 2022/23 budget strategy be approved.

The Cabinet Member for Finance, Governance and Customer Services presented the report of the Chief Financial Officer.

The gross revenue budget for 2021/22 was £412m and the net budget was £131m. The estimated revenue outturn position was within budget with a small surplus of £0.048m after the proposed transfers to reserves and balances had been made. This position had been achieved after delivering £7.3m of budget savings in 2021/22. On top of the £126.4m made since 2009/10, this was a total of just over £133m in ongoing savings.

Capital spending ended the year at £57.37m against an approved budget of £73.31m. The programme of expenditure continued to be impacted by the effects of Covid-19. Some re-phasing of expenditure into 2022/23 would take place. The rephrasing would generate some treasury management benefits in 2022/23.

Covid-19 continued to have an impact on collection rates in 2021/22; however, income collection was ahead of targets at the end of that year.

NuPlace, the Council’s wholly owned housing company, was a separate legal entity and produced its own accounts. However, the Council was required to prepare consolidated group accounts as part of its financial statements, including NuPlace’s financial position. The unaudited accounts showed that NuPlace generated an operating profit after interest and taxation of £0.407m in 2021/22. The company issued a dividend of £0.163m in the same year and this was paid to the Council as its sole investor. The Council also received other income from NuPlace totalling £1.8m. Whilst the purpose of NuPlace was to provide good quality housing for rent within the Borough, the financial benefits delivered by NuPlace were invested into front line services such as providing adult social care services.

Members welcomed the report, noting the Council’s sound financial footing and the difficulties that the Authority faced in terms of government funding.

The Leader of the Conservative group noted that children’s services and adult social care totalled a significant proportion of Council spending and that the funding for such services should be from central government.

RESOLVED – that Cabinet approve the following recommendations, which will go forward to Full Council for final approval:

(i)       To approve:

-           the Revenue outturn position for 2021/22, which remains subject to audit by the Council’s external auditors, and related virements in Appendix 3.

-           the transfers and changes to reserves and associated approval to the relevant members of the Senior Management Team (as determined by the Chief Executive) and after consultation with the relevant Cabinet Member to spend the reserves detailed in section 5 and Appendix 5.

(ii)        To approve the Capital outturn position and related supplementary estimates, re-phasing and virements shown in Appendix 4 and as summarised in the report.

(iii)       To grant delegated authority to the Director: Finance & HR to make any changes required, in consultation with the Cabinet Member for Finance, Governance & Customer Service.

(iv)      To note the performance against income targets.

(v)       To approve the 2022/23 Public Health Grant and update the 2022/23 budget strategy accordingly.