Issue - meetings

The Leader’s Portfolio

To consider report FIN/572 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 4 July 2022.

RESOLVED

1.         That the Cabinet:

a)     notes the outturn for the financial year 2021/22 as summarised in report FIN/572. 

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

c)      approves that £97,000 be added to the Capital programme, funded from Government Grant for Changing Places Toilets as outlined in Section 9.10 of report FIN/572.

2.         That Full Council be recommended to approve to the transfers of reserves as outlined in section 10 of report FIN/572.

Reasons for the Recommendations

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

The Leader of the Council presented report FIN/572 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 2021/22. It identified the main variations from the approved spending levels and any potential impact on future budgets.

The Cabinet was informed on the General Fund that at Quarter 3, there was a reported underspend of £143,000, but by the end of the financial year a confirmed underspend of £656,000.  In addition, in Quarter 3 there was a forecast of £1.7m of Covid pressures which would be funded from the identified Covid budgets, grants and earmarked reserve, but at outturn this fell to £1.3m and as a result £172,000 was put back in to reserves for Covid pressures in 2022/23 and future years.

On the HRA, the net deficit reduced from £4.8m reported at Quarter 3 to £3.5m. Whilst on the Capital programme, total spend for the year was £45m against a revised budget of £51m.  £6m has therefore been slipped into 2022/23.

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 4 July 2022.

Councillor Crow spoke on the item.

Councillor C Mullins commented as part of the discussion on the report and stated his concern over the impact of the cost of living crisis on residents and the knock-on effect on the discretionary and chargeable services over the next year.

RESOLVED

1.          That the Cabinet:

a)      notes the outturn for the financial year 2021/22 as summarised in report FIN/572. 

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

c)      approves that £97,000 be added to the Capital programme, funded from Government Grant for Changing Places Toilets as outlined in Section 9.10 of report FIN/572.

2.          That Full Council be recommended to approve to the transfers of reserves as outlined in Section 10 of report FIN/572.

Reasons for the Recommendations

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

To consider report FIN/572 of the Head of Corporate Finance.

The Commission considered report FIN/572 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 2021/22. It identified 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. It was recognised that revenue streams had increased due to car parking and community centres together with the Hawth Theatre management fee.

·       Confirmation that the Hawth agreement was the repayment of the capital grant occurring over the four-year contract extension period.

·       Recognition that that the cost of living and inflation were a concern and would have an overall impact on the Council’s finances in areas such as suppliers’ costs and energy prices would be just one of the significant challenges in the future

·       Verification was provided on the delay to major works at Milton Mount flats due to a late design change coming from Sussex Building Control.

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

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.