Issue - meetings

Members were advised that the council continued to face unprecedented challenges this financial year as a result of Covid.  The gross General Fund overspend of £5.2 million is largely due to Covid and is similar to the previous monitoring report. Government financial support is estimated at £3.5 million giving a net overspend forecast of £1.7 million.

Both the General Fund and Housing Revenue Account capital programmes are showing a substantial underspend. This, again, was largely due to Covid, as works contracts had been hampered and suppliers had been unable to deliver within normal timeframes. It was planned for most capital projects to catch up during the next financial year. Cabinet was asked to approve expenditure in relation to Covid and EU transition. All this expenditure would be covered by specific Government funding pots.

The government allocated £4.6bn of emergency funding nationally in 2020-21, over four tranches, to support local authorities' response to and impact of the pandemic.  The Council received or had been notified of an award of £2.978m of this funding. Additional emergency funding of £1.0m was expected for 2021-22 and this was considered in more detail in the budget report elsewhere on the agenda for this meeting.

In addition the Council had to date received £476k from the Sales, Fees and Charges compensation scheme, where authorities are compensated for 75% of their losses after meeting a 5% top slice.  Total funding forecast from this scheme for 2020-21 is £600k. Funding had also been announced to compensate local authorities for losses in council tax and business rates, more detail on this was also considered in the 2021-22 budget report.A further additional £100m would also be available nationally to support Local Authority Leisure Centres and formal guidance had since been received. An expression of interest by the council had been submitted and would be followed up with a bid in January.

Councillor Yates proposed, Councillor Albon seconded and Cabinet agreed:

1.  To notes the following:

  i.  The General Fund revenue budget 2020-21 forecast position.

  ii.  The General Fund Capital Programme 2020-21 forecast position.

  iii.  The Housing Revenue Account position.

2  The additional spend associated with Covid as identified at 3.5 of this report;

3.  The additional spend associated with EU transition as identified at 4.1 of the Cabinet report;

4.  The updated General Fund capital programme as set out in Section 6 and Annex 1 to the report.