The Leader’s Portfolio

To consider report FIN/510 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 23 November 2020.

RESOLVED

That the Cabinet agreed the projected outturn for the year 2020/2021 as summarised in this report.

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/510 of the Head of Corporate Finance.  The report set out a summary of the Council’s actual revenue and capital spending for the quarters to September 2020 together with the main variations from the approved spending levels and impact on future budgets. The report showed that the Council had a deficit of £881k, against the Budget agreed in February 2020, before the pandemic. However the deficit had reduced by £400k since the previous Quarter.

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 23 November 2020, which included that some schemes in the capital programme might slip to next year and that it was not anticipated that the contact centre would undergo the same demand and pressure going forward that it had during first lockdown which resulted in a need to increase staff resources.

Councillors Jhans and Mullins spoke as part of the discussion on the report, with Councillor Jhans commented that the Centre for Cites had produced a report stated it believed that Crawley would be the hardest hit town in the country by the impact of the Covid pandemic. This was already being shown by the increased number of residents claiming Universal Credit and this only going to get worse over the next year and as such difficult decision would need to be taken. Councillor Mullins spoke about his portfolio over trying to design services that bring in revenue to the Council, but the pandemic has wiped out those services, hopefully until such time as it safe to be open again.

A recorded vote was taken on the recommendations in accordance with the Council’s Virtual Committee Procedure Rules.  The names of the Councillors voting for and against the recommendations, along with any abstentions, are recorded as set out below:

For the recommendations:

Councillors Irvine, Jhans, Lamb, Mullins, and P Smith. (5)

Against the recommendations:

None.

Abstentions:

None.

RESOLVED

That the Cabinet notes and agrees the projected outturn for the year 2020/2021 as summarised in this report.

Reasons for the Recommendations

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

budget.

To consider report FIN/510 of the Head of Corporate Finance.

The Commission considered report FIN/510 of the Head of Corporate Finance. The report set out a summary of the Council’s actual revenue and capital spending for the quarters to September 2020 together with the main variations from the approved spending levels and impact on future budgets.

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

·       Confirmation that the favourable and unfavourable indications within the budget monitoring variations referred to the projected variances against the original budget.

·       Recognition that with reference to the sports, leisure and community facilities, lost Covid income related to the contractual value due to the council. The Covid additional expenditure referred to costs such as maintaining venues open at a reduced capacity.

·       Acknowledgement that staffing resources increased during the first lockdown within the contact centre.  However it was not anticipated that the services would undergo similar demands or pressures in the future.

·       Confirmation that at the start of the pandemic the council was maintaining shorter investments as the impact on income for the rest of the year was unknown.  Longer term investments have tended to result in higher interest rates (although interest rates were continuing to fall).

·       Acknowledgement that in terms of the capital programme there were a few schemes which may slip to next year (for instance the town hall and purchase of properties).

·       It was confirmed that an Unsupervised Play Investment Plan Working Group had been established to investigate the different play area improvements. The Wakehams Green site and investment would be discussed as part of this group.  The various projects receiving S106 contributions indicated balances from previous schemes and had been re-allocated to the new programme.

·       Explanations sought and obtained on the contribution to reserves within the general fund.  Adequate reserves were required throughout the pandemic and to fund the capital programme, both of which were addressed within the Budget Strategy report.  The council’s budget position had been raised with the external auditors who believed the council had good governance, project and risk management where appropriate.    

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.