Issue - meetings

Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Transformation.

This report will provide an update on the Quarter 3 budget monitoring and Council's financial position. It will seek approval for any changes to the Council's revenue or capital budgets required to respond to the changing financial scenario and the delivery of the MTFS. It will also seek a decision relating to the agreement with the London Pension Fund Authority.

The Cabinet Member for Finance and Transformation introduced the report which provided an update on the Quarter 3 budget monitoring and Council's financial position. The report also sought approval for any changes to the Council's revenue or capital budgets required to respond to the changing financial scenario and the delivery of the Medium-Term Financial Strategy (MTFS) and a decision relating to the agreement with the London Pension Fund Authority.

In response to questions from Cllr das Neves, and Cllr Cawley- Harrison, the following was noted:

-      Regarding the growth of inflation in figures, increases in placement costs in Adults services, and Children’s Service were highlighted. An example was provided of significant increased costs for complex placements.

-      Overall, there was adequate contingency in the budget for increased inflation costs. This was also one of the pressures accounted for in the coming budget.

-      With regards to government funding to cover Covid costs in current year, this was the assumption for this financial year. This had been the case in the previous year and government had followed through with funding and position improved incrementally.

-      It was noted that additional surplus generated through CPZ income was ringfenced to transport projects which included concessionary travel. This cost was between £13m to £14m and therefore the Council was always in a net spend situation.

-      Agreed to provide Cllr Cawley- Harrison with a written response on why PL 20/25 was amber rather than red RAG rated.

[ Cllr Chandwani entered the meeting]

RESOLVED

1.    To note the forecast base budget revenue outturn for the General Fund of £9.37m and that Directors are seeking actions to bring the forecast down before the end of the year. (Section 6, Tables 1a and 1b, and Appendix 1).

2.    To note that the £12.43m forecast Covid pressure on the GF is expected to be offset by Government funding (Section 6 and Table 1a).

3.    To note the net Housing Revenue Account (HRA) forecast of £0.3m overspend (Section 6 and Appendices 1 and 2).

4.    To note the net DSG forecast of £6.69m overspend. (Section 6 and Appendix 1).

5.    To note the forecast budget savings position in 2021/22 which indicates that £4.9m (46%) may not be achieved. (Section 6 and Appendix 3). This is incorporated in the GF budget pressures addressed in recommendations (1) and (2) above.

6.    To approve the proposed budget adjustments and virements to the capital programme as set out in Table 2 and Appendix 6.

7.    To note the forecast expenditure of £241.7m in 2021/22 which equates to 51% of the revised capital budget (Section 8 and Appendix 4).

8.    To approve the revenue budget virements and receipt of grants as set out in Appendix 6.

9.    To note the debt write-offs approved by officers in Quarter 3 2021/22 (Appendix 7) and to approve the debt write-offs greater than £50k in Appendix 7a.

10.To note the C19 grants schedule (Appendix 8).

11.To agree to delegate the authority to  ...  view the full minutes text for item 754