Issue - meetings

(To receive a report from the Executive Director – Resources which provides an update on revenue spending compared with budgets for the financial year which started on 1 April 2020)

That the current position on the revenue budget be noted.

The Executive Director – Resources referred to the Chancellor of the Exchequer's spending review of 25 November 2020, which had included announcements on a public sector pay freeze; the ability for councils to levy a 3% adult social care precept for 2021/22; a 2% increase on general Council Tax; provision for Council Tax losses arising from the Covid-19 pandemic; and a grant of £300 million nationally for children and adult social care. 

The Assistant Director – Strategic Finance presented a report on Revenue Budget Monitoring Report 2020/21 - Quarter 2 to 30 September 2020.  An underspend of £1.9 million (excluding schools and Covid-19) had been forecasted for 2020/21, which represented an improvement of over £5 million compared to the forecast in the previous quarter.  The variances to budgets had been detailed in the report and were explained to the Executive.   

A forecast underspend on capital financing charges of £7.9 million had not been included in the £2.0 million forecast, as this sum would be earmarked to manage fluctuations in the capital financing budget.

There was also an assumption that the Council's forecasted Covid-19 position would be contained within the Government emergency grant, forecasting an overall surplus of £7.7 million.

Councillor R P Parker, the Chairman of the Overview and Scrutiny Management Board, highlighted to the Executive the main points in the Board's statement to the Executive.   

The following points were clarified:

• No funding had been allocated by the Government to local authorities to provide support to businesses, but the position could change.
• There were plans to address and control the budget variances in children's services.    

RESOLVED

That the current position on the revenue budget be noted.