Agenda item

Report of the Director of Finance to be introduced by the Cabinet Member for Finance and Local Investment.

This report sets out the 2021/22 provisional outturn for the General Fund, HRA, DSG and the Capital Programme compared to budget. 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 also includes proposed transfers to/from reserves, revenue and capital carry forward requests and any budget virements, adjustments and grant acceptances.

The Cabinet Member for Finance and Local Investment introduced the report, which set out the 2021/22 provisional outturn for the General Fund, HRA, DSG and the Capital Programme compared to budget. It 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 Statement (MTFS). It also included proposed transfers to/from reserves, revenue and capital carry forward requests and any budget virements, adjustments and grant acceptances.

The Cabinet Member referred to:

• The General Fund being on budget.
• As forecast, the direct impact of Covid 19 being largely offset with government support.
• The base budget pressures were offset by budget contingency, although without reserves being drawn down.
• Financial pressures would continue into the new financial year and impact of inflation would continue to be felt by the Council and the community, in particular in social care placements.
• Council reserves continued to provide a level of resilience in addition to growth.
• The coming financial new year required a tight financial grip.
• The £20 million in savings, required in this financial year, whilst considering that the effects of Covid19 were still being felt coupled with extremely uncertain funding environment.

The Cabinet Member for Children, Schools and Families highlighted that Haringey had been identified by the Department for Education (DfE) as one of 10 local authority areas to receive £1.28M of targeted funding to tackle serious youth violence over the next three years. The Director of Children’s Services was to chair the SAFE Taskforce Board in Haringey to tackle youth violence in this schools led project. This intervention group was likely to include primary transition project and looking at transition to secondary schools. This funding would lead to expanding the outreach and focus on cognitive behaviour. This funding was further good news for expanding social workers in school’s scheme.

The Cabinet Member for Communities and Civic life was pleased to report that the Arts Council had awarded the Council £600k for upkeep of Bruce Castle Museum. This was a £1.4531m project helping make Bruce Castle Museum a London destination.

In response to questions from Cllr Connor, the following information was noted:

• The attached report was an outturn report and provided information on the completed budget for 2021/22. The budget monitoring report for the first quarter of this financial year, due for Cabinet consideration in September, would provide information on savings progress with view on this.

• DSG budget management plan was in place. There was a process with the DFE and the Council would enter into a negotiation on what it could deliver going forward. It was noted that this work had not been completed as yet and it was hoped the proposals put forward to the DFE would secure best outcomes for the Council and reduction on the overspend, in year, and long term. However, as yet, there was no long-term position to report on.

• With regards to inflation impacting on Council borrowing, it was noted that the Council had borrowing in various places and over different terms with different levels of risk. Inflation was a risk factor and there would be more updates in quarter 1 budget monitoring report.

• Noted that inflation can impact on capital schemes and revenue budget. It was too early in the financial year to understand the full impact of the inflationary environment. The wider economic impact on borrowing would be reported to the Corporate Committee.

RESOLVED

1.    To note the provisional revenue and capital outturn for 2021/22 as detailed in the report.

2.    To approve the capital carry forwards in Appendix 3.

3.    To approve the appropriations to/from reserves at Appendix 4.

4.    To approve the budget virements as set out in Appendix 5.

5.    To note the debt write-offs approved by officers in Quarter 4 2021/22 as set out in Appendix 6.

6.    To accept the £1.28m SAFE Taskforce (Support, Attend, Fulfil, Exceed) grant funding as set out in Section 7.

7.    To accept a grant from the Arts Council under the MEND programme of £588,900 to improve the fabric of Bruce Castle Museum as set out in Section 7.

Reasons 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.

It is necessary at year-end to resolve the treatment of related balance sheet accounts, in light of the experience during the year and knowledge of the Council’s future position and requirements.

Alternative options considered

The Director of Finance, as Section 151 Officer, has a duty to consider and propose decisions in the best interests of the authority’s finances and that best support the delivery of the agreed borough plan outcomes whilst maintaining financial sustainability.

This report of the Director of Finance has addressed these points. Therefore, no other options have been presented