Agenda item

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 enter into a pensions agreement with the London Pensions Fund Authority (LPFA) in relation to historic Greater London Council/Inner London Education Authority pension liabilities, to the Director of Finance, as set out in section 9, and to note that the financial implications are in line with the Medium Term Financial Strategy assumptions.

12.To note the delegated decision made by the Director of Finance to enter into a ‘Master Assignment Agreement’ with the Secretary of State for Business, Energy and Industrial Strategy (BEIS) for the recovery of debts relating to the Covid 19 business rates grants schemes, as set out in section 10.

13.To approve the allocation of £1.1m from the approved capital programme contingency to the Alexandra Palace and Park Trust for urgent capital works, as set out in section 8.

14.To agree to defer repayment of £0.414m of loan repayments from Alexandra Palace and Park Trust in both 2021/22, and 2022/23, as set out in section 8.

15.To accept the CCG Grant of £1.34m in relation to the Wood Green NHS Hub project, as set out in section 8.

16.To approve a budget virement of £1m Strategic Community Infrastructure Levy from DEN budget to the Wood Green NHS Hub project, as set out in section 8.

17.To accept the GLA grant of £10m in relation to the High Road West scheme, from the Mayor’s Land Fund, as set out in section 8.

Reason for Decision

A strong financial management framework, including oversight by Members and senior management, is an essential part of delivering the council’s priorities and statutory duties. This is made more critically important than ever as a result of the on going financial implications placed on the Council by the Covid-19 crisis.

Alternative Options Considered

The report of the management of the Council’s financial resources is a key part of the role of the Director of Finance (Section 151 Officer) in helping members to exercise their role and no other options have therefore been considered.