Agenda item

As detailed in the recommendations.

Councillor Banks introduced the report which provided the latest detailed revenue budget monitoring position for the Council Fund and Housing Revenue Account for the financial year, and presented the position based on actual income and expenditure, as at Month 11.  The report projected how the budget would stand at the close of the financial year if all things remained largely unchanged.  It also took into account the latest positon on Welsh Government (WG) Emergency Grant Funding announcements.

            The projected year end position was:

Council Fund

·         An operating surplus of £1.912m (excluding the impact of the pay award which would be met by reserves), which was a favourable movement of £0.988m from the surplus figure of £0.924m reported at Month 10.

·         The operating surplus of £1.912m equated to 0.67% of the Approved Budget, which was marginally above the target Medium Term Financial Strategy (MTFS) Key Performance Indicator (KPI) for a variance against budget of 0.5%.

·         A projected contingency reserve balance as at 31^st March 2021 of £5.689m.

The Corporate Finance Manager explained that the improved position had predominantly arisen from the confirmation of further funding from the Welsh Government (WG) Hardship Fund for Income Losses incurred during the financial year (£0.665m).  In addition, WG had also adjusted the eligibility criteria for grants within Social Services (Adults and Children’s services) which had resulted in a further positive movement on the outturn (£0.258m).

Previous forecasts included potential losses of income totalling £0.665m within the Planning and Environment and Governance portfolios.  This was due to the fact that WG had only confirmed funding for up to 50% of those losses at that stage.  As funding for the full amount had now been confirmed, the positive impact on the projected outturn had now been reflected.

Housing Revenue Account

·         Net in-year revenue expenditure forecast to be £1.675m lower than budget.

·         A projected closing balance as at 31^st March 2021 of £3.684m.

The Corporate Finance Manager provided details on the projected position, the projected position by portfolio, significant movements from Month 9, open risks, new emerging risks, achievements of planned in-year efficiencies, carry forward requests and reserves and balances.

He explained that as with all Councils, the pandemic had significantly impaced on Council Tax collection.  At this stage Council Tax income was 1% below target which equated to £1.0m.  Income was recovering slower than anticipated, but was expected to recover over time now that the recovery processes had resumed in full and when agreed payment deferrals were settled.

Councillor Roberts thanked all colleagues across the authority who continued to work hard to ensure that costs were kept to a minimum.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2021 be noted;

(b)       That the projected final level of balances on the Housing Revenue Account be noted; and

(c)        That the carry forward requested included in the report be approved.