Issue - meetings

(To receive a report from the Executive Director – Resources which invites the Executive to note the current position on the revenue budget)

That the current position on the revenue budget be noted.

A report by the Assistant Director – Strategic Finance on Revenue Budget Monitoring set out the Council's expenditure of the approved budget for quarter 1 of 2020-21, with explanations for any significant variations.

A revenue overspend of £3.555 million (excluding schools) for 2020-21 had been forecast, although an underspend of £6.948 million on capital financing charges had not been included in the forecast.

The financial impact of the Covid-19 pandemic was reported by service area had been summarised in Appendix K to the report.  Up to 30 June 2020, costs and losses of approximately £7 million had been reported, with forecast costs and losses of up to £43 million, which included one-off, ongoing and contingency sums, such as the supply of personal protective equipment.   Approximately £40 million of specific emergency grant for the council's Covid-19 response had been received.

The Chairman of the Overview and Scrutiny Management Board presented the comments from the Board's consideration of the report on 27 August 2020.  These included a request for more information on savings which had accrued as a result of the Covid-19 pandemic; and the activities of the Local Government Association in seeking increased funding for local government.

The Executive raised the following points:

·           The reported overspend on children's social care had arisen as a result of the plans to open new care homes in Lincolnshire, which had been planned prior to the Covid-19 pandemic, had not yet been progressed owing to the impact of the pandemic. 

·           The home to school transport overspend specifically related to the impact of the required social distancing requirements as a result of Covid-19.

·           It was confirmed that the £40 million of specific emergency grant had included a contingency sum for any impact of Covid-19 during the autumn and winter of 2020.

·           The County Council's strong financial position reflected its prudent approach to managing its budgets, compared to other local authorities, many of which relied on income generated by commercial assets, such as car parks or property, which were currently providing limited income.

·           The Government's comprehensive spending review had been expected during the autumn of 2020, with a three-year spending settlement.  However, the impact of the Covid-19 pandemic could delay this.  It was noted that the medium term financial strategy would be considered by the Executive on 3 November 2020, prior to the County Council on 11 December 2020. 

RESOLVED

That the current position on the revenue budget be noted.