Issue - meetings

The Leader’s Portfolio

To consider report FIN/526 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 28 June 2021.

RESOLVED

That the Cabinet:

a)         notes the outturn for the financial year 2020/21 as summarised in report FIN/526.

b)         notes that this has been an exceptional year where it has been very difficult to do accurate financial projections.

Request Full Council to:

a)         approve the increase the capital budget for purchase of temporary accommodation from £1.1m to £2.4m to be funded from specific homelessness grants, revenue and earmarked reserves for purchase of such properties.

b)         approve the transfers of reserves as outlined in section 9 of report FIN/526.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

The Leader presented report FIN/526 of the Head of Corporate Finance on the quarter 4 budget monitoring, which set out a summary of the Council’s outturn for both revenue and capital spending for the financial year 2020/21.  It identified the main variations from the approved spending levels and any potential impact on future budgets.

It was noted that the Council had identified savings and efficiencies of £1.775m to ensure the Council’s financial position remained stable due to the impact of the pandemic.  However by the end of the financial year 2020/21 the Council had an underspend of £1.272m against the original budget and it was explained that this was due to the Government unexpectedly repaying 75p of every £1 after deducting 5% of the budgeted income from sales fees and charges for the year.

The Leader informed the Cabinet that, as the Council had an unexpected one-off £1.2m, it was proposed to use some of this money to further fund temporary accommodation and support facilities for people experiencing homelessness within the borough.

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on 28 June 2021, which included:

·         Acknowledgement that the report documented the financial viability of the Council, particularly as a result of Covid-19.  It was recognised that revenue streams had been supressed, and any reductions would affect the current position.

·         Explanation was provided on the interest paid to HMRC due to late payment of VAT on disposal of land.

·         Recognition that the in-year deficit on housing rents had been increased by the delay letting units, in some instances due to prolonged building work.

·         It was noted that the Council had been effective in dealing with the business support grants.  However, the biggest concern was how to address the challenges in the future to re-build the community and deal proactively with Covid-19.

Councillor Crow also spoke on this item.

RESOLVED

That the Cabinet:

a)         notes the outturn for the financial year 2020/21 as summarised in report FIN/526.

b)         notes that this has been an exceptional year where it has been very difficult to do accurate financial projections.

Requests Full Council to:

a)         approve the increase the capital budget for purchase of temporary accommodation from £1.1m to £2.4m to be funded from specific homelessness grants, revenue and earmarked reserves for purchase of such properties.

b)         approve the transfers of reserves as outlined in section 9 of report FIN/526.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

To consider report FIN/526 of the Head of Corporate Finance.

The Commission considered report FIN/526 of the Head of Corporate Finance on the quarter 4 budget monitoring, which set out a summary of the Council’s outturn for the year for both revenue and capital spending for the financial year 2020/21. It identifies the main variations from the approved spending levels and any potential impact on future budgets.

During the discussion with the Leader of the Council, Head of Corporate Finance and Chief Accountant, Councillors made the following comments:

·         Acknowledgement that the report documented the financial viability of the council, particularly as a result of Covid19. It was recognised that revenue streams had been supressed, and any reductions would affect the current position.

·         Explanation was provided on the interest paid to HMRC due to late payment of VAT on disposal of land.

·         Recognition that vacancies in some areas had produced an under-spend as recruitment in the public sector for certain posts was challenging.

·         Acknowledgement that the delays in dealing with the repairs and maintenance within Crawley Homes had been caused by Covid-19 restrictions and impeding access to properties, along with the poor weather that had affected external works. 

·         Recognition that the in-year deficit on housing rents had been increased by the delay letting units, in some instances due to prolonged building work.

·         It was noted that the council had been effective in dealing with the (business support) grants.  However, the biggest concern was how to address the challenges in the future to re-build the community and deal proactively with Covid-19.

·         Clarification sought on specific details within the report and those provided within appendices.

·         The Commission expressed its thanks to the Finance Team for its continued hard work throughout the pandemic.

RESOLVED

That the Commission notes the report and requests that the views expressed during the debate, are fed back to the Cabinet through the Commission’s Comment sheet.