Issue - meetings

This report provides Cabinet with an update on the Council’s financial performance.

Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader, Finance and Property) summarised the published report which provided an update on the Council’s financial performance. The report compared favourably with quarter 1, given the movement from the reported £3m net overspend in quarter 1 to a small net underspend in quarter 2.  Councillor Butlin highlighted key points from the report including the reduction in the headline revenue forecast, increased Covid funding from Central Government since quarter 1, an overall reduction in forecast service spending for the Resources Directorate and Corporate Services, off-set by increasing demand pressures in Children and to a lesser extent Adults, and a significant reduction in the SEND deficit. He went on to outline the position with regard to Covid funding, noted that the overall delivery of Medium Term Financial Strategy savings remained strong and noted a forecast overall reduction in the Capital programme.

Councillor Jerry Roodhouse raised concerns that the Covid grants may be masking some financial pressures, and highlighted disability, mental health and hospital discharge as areas where long term sustainable funding was required.  Councillor Butlin responded that it was difficult to anticipate the pressure on mental health and that the Council continued to lobby government on this issue.  He was aware of the pressures within the authority and whilst more money to deal with those pressures would be welcome, he felt that the overall financial position was reasonable.

Resolved:

That Cabinet:

1.     Notes the adjusted forecast underspend of £0.114m that would contribute to the Directorate and General Risk Reserves at the end of 2021/22.

2.     Notes the forecast under-delivery of the 2021/22 savings requirement to the value of £0.726m.

3.     Notes the forecast capital spend for 2021/22 of £168.424m, of which £151.433m is capital payments controllable by the County Council and the balance, of £16.991m, relates to schemes funded by s278 developer contributions where the timing is not directly controllable by the Council.

4.     Approves the carry forward of the reprofiled spend on the capital programme of £15.590m in 2021/22 into future years and notes the carry forward of s278 contributions of £15.871m that is not directly controllable by the Council.