Agenda item

The Leader’s Portfolio

To consider report FIN/505 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 28 September 2020.

RESOLVED

That the Cabinet notes the projected outturn for the year 2020/2021 as summarised in report FIN/505.

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/505 of the Head of Corporate Finance which set out a summary of the Council’s actual revenue and capital spending for the quarters to June 2020 together with the main variations from the approved spending levels and impact on future budgets. The Leader explained that the impact of the Covid19 has had a dramatically impacted upon the Council budget and income streams, so that at the end of the Quarter 1, even with additional Government funding, there was a deficit of £1.2mil to the General Fund. It was also explained that unfortunately the current difficult financial position was unlikely to improve any time soon, due to the ongoing effects of Covid19.

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 September 2020, which included:

·         Acknowledgement that the report documented the financial viability of the council, particularly as a result of Covid19.

·         Recognition that work had continued during lockdown to support the homelessness and street community.  Diverted giving was still the preferred option of support.

·         Confirmation that the delays in the handover of new housing developments had impacted on the housing register. The register had also been subject to an increase of those who had seen a change in circumstances due to their employment status resulting from the pandemic.

·         Recognition that the free parking provided at Orchard Street, together with Crawley Hospital choosing to suspend pay and display parking until the end of June had decreased car parking income.

·         Acknowledgement that the pay award had been higher than budgeted.

·         Explanations sought and obtained on the various schemes provided within the capital programme.

·         Confirmation that the increase in cancelled garage accounts, together with the inability to return garage keys safely to the town hall had resulted in a shortfall of rental income.

·         Officers confirmed that the favourable and unfavourable variation indications would be reinstated for future reports.

Councillor Crow was invited to speak on the item. Matters raised included:

·         Highlighted that this financial quarter covered the difficult lockdown period.

·         Recognition that whilst government support had been welcomed, budget-saving decisions were still required to reduce the deficit.  The pay award should however be welcomed.

·         A query was raised regarding future funding for homelessness, together with the income compensation scheme for lost sales, fees and charges and whether these figures were included in the Quarter 1 calculations.

·         Recognition that there was determination to move forward to deliver solutions.

The following responses were offered:

·         Whilst the level of support had been forthcoming from central government, it had not compensated for the level of expenditure.

·         The projections from the income compensation scheme for lost sales, fees and charges were not included in Quarter 1, and would feature in 2020/2021 Budget Monitoring Quarter 2 report.

·         Notification has not been received about forthcoming funding regarding homelessness.  Should this be received it would also be reported in a future Quarterly Monitoring report.

Councillors P Smith, Lamb and Mullins spoke as part of the discussion on this item. Council officers from both the Finance and Housing teams, together with partner organisations were thanked for their hard work and support during the Coronavirus pandemic. The implications for specific portfolio areas were highlighted and the need to reduce further economic consequences.

RESOLVED

That the Cabinet notes the projected outturn for the year 2020/2021 as summarised in report FIN/505.

Reasons for the Recommendations

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

approved budget.